Organization of HOA - Basic Requirements > HOA Forum

Unanswered

Active Topics

Forums

Forums > Homeowner Association > HOA Discussions

Subject: Organization of HOA - Basic Requirements

Prev Next

You are not authorized to post a reply.

Author

Messages

ElizabethC
(Georgia)

Posts:2

02/08/2006 10:24 AM
The builder of my small subdivision (87 homes) in Fairburn, Georgia has relinquished control to the homeowners effective February 1, 2006. What are some of the basic information we need to organize at our first meeting on March 4, 2006.

RogerB
(Colorado)

Posts:4686

02/08/2006 12:53 PM
ElizabethC, before taking over from the developer have a financial audit and hire an experienced managing agent and/or an attorney experienced in HOA transition to help. Following are some items to consider during the transition. 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 (Transition Audit) 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 and specifications used in the construction of the improvements in the Common Element 7) Original or certified copy of the recorded Declaration, as amended and/or supplemented, Articles of Incorporation, Plat Map, Bylaws, Rules and Regulations (if any), and Minutes Book 8) Copies of all insurance policies currently in effect 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 still in effect 11) Corporate seal 12) Non Profit Certificate from the Secretary of State of Colorado 13) Documents to support any special meetings of the association held (elect members of the Executive Board and other official business) 14) Resignation letters from the Declarant's Officers and members of the Executive Board 15) Signature cards for all association bank accounts and any appropriate banking resolutions 16) Current budgets and prior budgets 17) Federal and State Tax ID numbers 18) Federal and State tax filings for prior years 19) Evidence of compliance with Fair Housing Act accessibility requirements 20) Addresses for changing billing for services rendered to the Association (trash, utilities, contractors) Good Luck, RogerB

CharlieT
(Texas)

Posts:12

04/09/2006 12:50 PM
In regards to taking over the HOA from the developer, it was stated that before turnover or take over, certain things should be done. My question is this:----After the developer announces plans to turnover the association a special meeting is called to elect the homeowners first board of directors. At that point the homeowners having taken control. Hiring an attorney, accountant, engineers to inspect the common areas and buildings are done after we take control. In our community the developer has recognized an Advisory Committee months before turnover. This committee will be working on pre-transistion concerns but will have no power other than advise the developer appointed board. The Florida Homeowners Statute 720 has a section related to developer turnover transistion. It's simular to the requirements stated in the previous posting.

RogerB
(Colorado)

Posts:4686

04/09/2006 5:49 PM
Charlie, I haven't read Florida statute 720 but I would not accept the turnover without the advisory committee requesting a transition audit in writing to the developer. If the request is not fulfilled contact an experienced HOA attorney for advise prior to accepting the transition. You can ask the attorney to accept payment after takeover.

BettyT
(South Carolina)

Posts:1

05/26/2006 10:46 AM
This was a an interesting post related to my beginnings with our HOA. We are in a very small 25 unit cottage complex in South Carolina and our developer is now mandating the first meeting to turn over the HOA to the owners. He is requesting 3 names for positions on the board. Several units have not been occupied and many folks don't know their neighbors yet. Guess it is homework time.

JoyH
(North Carolina)

Posts:14

05/29/2006 10:25 AM
I just started managing a 30 unit townhome community and the owners were not properly ready to take it over. Don't take it over until all the items listed above have been covered. Take the initial expense now to have everything inspected to make sure that they built to code. Once he leaves you may never get him back and we have several building issues that he is ignoring. Your local departments don't usually have the employees to make sure that everything was built to code and may have approved items.

DottieS
(Massachusetts)

Posts:34

12/11/2007 3:30 PM
Gloria, I take it mc means mangement co....? There are only 15 units in this condominum, It is a resort and a conversion...... The developer owned the motel and converted it into condo's.....I don't know if this makes a difference or not, Just like the developer did not have a bond...I asked him....He said, "No" and we went to the town...... We do have to get an attorney, the books are a mess, and developer/owner admits that....He did not even have the money in a different acount , he just did not know how to handle that....We have an e-mail, from him, that is why I think it is too much for him , now that they are mostly sold, except 2.... We have much to do with negotiations, and I wondered if having the board would hurt that or not.....and also we will have to take over and access all owners for the legal fee, he included, and he will not make a larger budget for that purpose.......He probley does not like the fact he will have to contribute.... I will have to get your book....sounds interesting.....

GloriaM
(North Carolina)

Posts:829

12/11/2007 3:39 PM
Elizabeth: Once you have acquired Roger's list go ahead and document a Notice of Meeting to the Membership. With the notice send a proxy ballot and a self nomination form. Set the time and place for the meeting for the purpose of discussing community issues and electing a board. Once the HO are in control you will have more authority to act on behalf of the HOA in speaking with Town Officials etc. Good Luck.

DottieS
(Massachusetts)

Posts:34

12/11/2007 7:02 PM
Sorry Everyone, My turnover must be making me crazy, I put my post in the wrong place and thread, It should of been in Developer/owner resigns.. I do find this thread very interesting, as it helps me with what I am dealing with....... Thank you all for sharing... dottie

SusanW1
(Michigan)

Posts:5202

12/12/2007 2:57 PM
Elizabeth, Also - hire a parliamentarian to look over all your documents and bylaws to make sure they flow right and connect in all the right ways. Saves LOTS of headaches in the end and makes sure your board and membership relationships are in order.

You are not authorized to post a reply.

Forums > Homeowner Association > HOA Discussions > Organization of HOA - Basic Requirements