Organization of HOA - Basic Requirements

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

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.

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.

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.

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.