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JeremyL
(Texas)
Posts:2
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| 09/26/2006 9:09 AM |
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I'm trying to determine the procedures for transfering a HOA to the residents of a neighborhood. My general understanding is that a builder/developer creates the neighborhood and establishes the HOA. At some point the HOA is transferred to the neighborhood residents.
I'm looking for any information about this process. Pitfalls, procedures during the transaction, etc. ANY information regarding this issue would be helpful. Thanks in advance. |
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RogerB
(Colorado)
Posts:3724
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| 09/26/2006 9:45 AM |
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Jeremy, several posts have previously discussed this transition. Following is some info.
The transition from a Developer controlled HOA to homeowners’ control is a critical time for the homeowners. Before the homeowners’ Board of Directors takes final control of the HOA a transition audit is strongly recommended. A transition audit includes a financial audit and a physical audit. Physical items owned by the HOA or for which the HOA has responsibility may include drainage, greenbelts, common areas, private streets, swimming pool, club house, tennis courts, commitments the Developer made prior to getting approval for the development, etc. Hiring an experienced Managing Agent to assist in the transition is of utmost importance. Utilizing an experienced HOA attorney is also recommended.
The following documents should be received from the Developer:
1) A roster of the owners (and mortgagees), include addresses and telephone numbers
2) Control of Association's funds
3) Financial Records of Association with an accounting of association funds and financial statements from the date the association commenced receiving funds and ending on the date on which the Declarant control period ends. (A financial audit should be completed immediately.)
4) All of the tangible personal property of the owners and the Association held or controlled by the Declarant (such as deeds to Common Elements)
5) Certificates of occupancy and permits issued for Common Element improvements
6) Plans, specifications, and warranties for improvements in the Common Element
7) Original or certified copy of the recorded Declaration and amendments, Plat Map, Articles of Incorporation and amendments, current By-laws and Rules and Regulations, and Minutes Book
8) Copies of all current insurance policies
9) Employment contracts and service contracts in which the Association is the contracting party
10) All warranties of contractors, subcontractors, suppliers and manufacturers that are in effect
11) Current budgets and prior budgets
12) Federal and State Tax ID numbers
13) Federal and State tax filings for prior years
14) Addresses for changing billing for vendors (trash, utilities, etc.) and contractors.
15) Signature cards for all association bank accounts and any appropriate banking resolutions
16) Copy of architectural standards, if any, and copies of modifications and variances approved
17) Documents which support any special meetings of the association
18) Resignation letters from the Declarant's Officers and members of the Executive Board
19) Evidence of compliance with Fair Housing Act accessibility requirements
20) Non Profit Certificate from the Secretary of State
21) Corporate seal (if any)
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DARCO Property Management (Colorado)
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