Builder will not turnover the HOA to co-owners

You're probably right regarding motives, but it's not just your bylaws but state law the developer's ignoring:

559.152 Advisory committee of nondeveloper co-owners; establishment; meeting with condominium project
board of directors; cessation; right to elect directors; formula; recording consolidating master deed; copy;
“units that may be created” defined.
Sec. 52. (1) An advisory committee of nondeveloper co-owners shall be established either 120 days after conveyance
of legal or equitable title to nondeveloper co-owners of 1/3 of the units that may be created, or 1 year after the initial
conveyance of legal or equitable title to a nondeveloper co-owner of a unit in the project, whichever occurs first. The
advisory committee shall meet with the condominium project board of directors for the purpose of facilitating
communication and aiding the transition of control to the association of co-owners. The advisory committee shall cease to
exist when a majority of the board of directors of the association of co-owners is elected by the nondeveloper co-owners.
(2) Not later than 120 days after conveyance of legal or equitable title to nondeveloper co-owners of 25% of the units
that may be created, at least 1 director and not less than 25% of the board of directors of the association of co-owners
shall be elected by nondeveloper co-owners. Not later than 120 days after conveyance of legal or equitable title to
nondeveloper co-owners of 50% of the units that may be created, not less than 33-1/3% of the board of directors shall be
elected by nondeveloper co-owners. Not later than 120 days after conveyance of legal or equitable title to nondeveloper
co-owners of 75% of the units that may be created, and before conveyance of 90% of such units, the nondeveloper coowners
shall elect all directors on the board, except that the developer shall have the right to designate at least 1 director
as long as the developer owns and offers for sale at least 10% of the units in the project or as long as 10% of the units
remain that may be created.
(3) Notwithstanding the formula provided in subsection (2), 54 months after the first conveyance of legal or equitable
title to a nondeveloper co-owner of a unit in the project, if title to not less than 75% of the units that may be created has
not been conveyed, the nondeveloper co-owners have the right to elect as provided in the condominium documents, a
number of members of the board of directors of the association of co-owners equal to the percentage of units they hold,
and the developer has the right to elect as provided in the condominium documents, a number of members of the board
equal to the percentage of units which are owned by the developer and for which all assessments are payable by the
developer.

reference: http://www.caimichigan.org/laws/act59.pdf

State law also requires that a financial statement be provided to all co-owners at least once per year.

Regarding the records:

559.157 Books, records, and contracts; examination; audit.
Sec. 57. The books, records, and contracts concerning the administration and operation of the condominium project
shall be available for examination by any of the co-owners and their mortgagees at convenient times and all books and
records shall be audited or reviewed by independent accountants annually. Such audits need not be certified.

Don't be intimidated. If the developer doesn't compy with the state laws and his own documents, then it is up to you and the other owners to document this and notify the state attorney general, Michigan does not have a condo department to enforce the laws.

Joe

P.S. You shouldn't mention company names on this or any forum. Its against the policy of this forum and it's just not a good idea given the litigiousness of our society.

it all depends on what the "association" owns. If you own common areas, roads, retention basins, etc., then all the owners of record will be held responsible for their upkeep. when you signed your contract to buy the home, you agreed to that. So, if no one wants to do it, then eventually there will be lawsuits and lawyers, or the city or state will take over, and you will be specially assessed (taxed) to do what your HOA should be doing, only at a higher rate as the city will add expenses for the operation of the program.

Colleen,

In AZ the developer must submit a public report which is required by the Real Estate department. The report may not contain the requirement for turnover to the members, but it does cover all aspects of the development. Therefore, if this were to happen to an assn in AZ I would suggest contacting the R.E. Depart. If developers are bound by any regs. in MI, I would suggest you contact that dept. There must be some state dept. that regulates or oversees developers. In most instances the AG is of no help regarding HOA problems! This is not a consumer issue, per se.

ColleenM3: If the developer's total lack of adherence to official documents is as you state, this is a sad state of affairs for the association and strong action on the assn's part is in order. Rally other like-minded condo purchasers (not renters), determine who will offer their time and ability to be board members. Cite portion of the official documents (condo and state law) whereby board members are to be elected, although it is not clear whether a percentage of b-members are to be appointed from assn. members or of the 'developer's persuasion'.

Write a letter with this information, also state no financial reports have been communicated, Mail it 'certified' and request a response by a certain date. If no action on the developer's part, go to Michigan officials and let them take it from there.

What about something as basic as not fulfilling a contract? Or in violation of contract agreement?

you are going to have to get a lawyer, but be sure it's a real estate lawyer (not a divorce lawyer)