Get 2 months of free community web site hosting from Community123.com!
Tuesday, October 22, 2019
Get 2 months of free community web site hosting from Community123.com!
Only members have access to all features.
Click here to join HOATalk for Free! Members click here to login and access all features.
Subject: Re: Transition Committees
Prev Next
Please login to post a reply (click Member Login on the menu).
Author Messages
AndreaW
(North Carolina)

Posts:57


07/19/2006 8:40 PM  
Our HOA is due to take over from the developer/builder at 90%. I attended a meeting tonight of all Committee Chairs and members and a representative from our Management Company. The purpose of the meeting was for the MC to help guide on us as to how meetings of committees should take place, making agendas and reference to our NC planned communities act and guidelines we need to follow. I asked the MC how many homes we are away from taking over control of the board? We are supposed to end at 437 homes, so i believe that at 393 we would have gained control (this being the 90%). However the reply to this question from the MC was that we were only at 325, yet according to a physical count I took when delivering Social Committee flyers last week, I came up with 361, and our HOA website has 350 homes registered this far. So my questions are:
1) how long should it take for the MC to be advised by the builder (or builder's attorney) after a house closes?
2) Since our CCR's read that the builder will have to pay full share of $450. per unsold/unbuilt lot once we are at 90%, if the MC has the incorrect information, how do we enforce this CCR rule?
3) Is this possibly a stalling tactic by the builder, since currently they only pay the shortfall between what the HOA takes in and the projected budget?
4) Our MC also advised when I questioned about the frmation of a Transition committee, that she has never heard of this being done and does not see a need for it. Does anyone have any information they can share about the importance of such a committee as well as an audit of the books before the developer/builder hands over the association?
5) Since i have posted in the past and have been advised by many of you that it is wise to do this, I carefully have read through our CCR's and Bylaws which are clearly written to protect the builder and not the HOA. When i stated this to the MC tonight she said that rewriting the bylaws and CCR's would be unecessary, that once the builder or class B membership is over it voids out the builder. However when I read through there are still so many issues i find that would warrant possible rewrite. Are there any laws for the state of NC to advise on this or any other documentation I can provide to back my case in point of a Transition Committee's important role?
Any input would be greatly appreciated, and if you need to you can also email me at [email protected]
Thanks to all on this site. I find it extremely helpful to have this forum to get clarification.
Andrea
RogerB
(Colorado)

Posts:5067


07/20/2006 7:40 AM  
Andrea, in response to your questions:
1) The management company should be advised by the title company within a week. We require a copy of the warranty deed be sent promptly.

2) Ask the MC for a list of properties that have been sold. Let the MC know you expect them to bill and keep accurate records which will be audited upon transition of control. Most counties post ownership of real property info on web sites which you can access. Call your County Clerk to find out the URL and how up-to-date info is.

3) It could be but you can find out in the transition audit and bill the Developer accordingly.

4) You definitely should form a transition team. A transition audit should include may items including a financial audit. These items are listed below.

5) If there are items in the Declaration which need to be amended which the Developer is in favor, it is easier to amend now. It is true that class B membership becomes irrelevant when the Developer leaves but this should not be amended until later when other items need to be amended.


HOA Transition from Developer to Homeowners Check List

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 in effect
11) Corporate seal (if there is one)
12) Non Profit Certificate from the Secretary of State
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 vendors (trash, utilities, etc.) and contractors.
21) Copy of architectural standards, if any, and copies of modifications and variances approved
RogerB
(Colorado)

Posts:5067


07/20/2006 8:08 AM  
Andrea, in addition to the transition audit I would recommend the transition team get bids from and interview management companies. If you decide to change management companies they should be invovled in the transition. Following is our check list for Colorado.

HOA Management Transfer Check List

 Notify all owners of change in management company

 Receive, analyze, and organize HOA files from previous management company

 Transfer funds if necessary; order checks and deposit slips

 Create HOA electronic files using accounting software

 Notify Secretary of State and vendors of change of Management Company and address

 Review insurance; a better company with better coverage may be available at less cost

 Review annual operating budget and 20 year reserve plan

 Review taxes and provide IRS guidelines on reserve and operating funds

 Collect all outstanding assessments

 Resolve all Covenant violations

 Welcome new residents and provided an HOA information packet


Optional:
 Update HOA Rules and Regulations to comply with the Colorado Common Interest Ownership Act (CCIOA) as amended by SB05-100 and SB06-89. DARCO can assist as desired.

 Amend the Declaration to update and remove obsolete items. DARCO can assist as desired.

 Amend the Bylaws to update and remove obsolete items. DARCO can assist as desired.

 Digitize all HOA documents. HOA documents are posted to HOA web site and/or are provided to Seller or Agent to give to a prospective Buyer. DARCO can assist as desired.
Please login to post a reply (click Member Login on the menu).
Forums > Homeowner Association > HOA Discussions > Re: Transition Committees



Get 2 months of free community web site hosting from Community123.com!



News Articles Provided by: Community Associations Network
News, articles and blogs about condos/HOA's

Only members have access to all features.
Click here to join HOATalk for Free! Members click here to login and access all features.







General Legal Notice:  The content of forum messages are from the posting member and have not been reviewed nor endorsed by HOATalk.com.  Messages posted by HOATalk or other members are for informational purposes only, are not legal or professional advice and do not constitute an attorney-client relationship.  Readers should not act upon this information without seeking professional counsel.  HOATalk is not a licensed attorney, CPA, tax advisor, financial advisor or any other licensed professional.  HOATalk accepts ads from sponsors but does not verify sponsor qualifications nor endorse/guarantee any sponsor's product or service.
HindmanSanchez Legal Notice:  (For messages posted by HindmanSanchez) This message has been prepared by HindmanSanchez for informational purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. Members of HOATalk.com should not act on this information without seeking professional counsel. Please do not send us confidential information unless you speak with one of our attorneys and get authorization to send that information to us. If you wish to initiate possible representation, please contact an attorney in our firm. Our attorneys are licensed to practice law in the state of Colorado only.

Legal Notice For Messages Posted by Sponsoring Attorneys: This message has been prepared by the sponsoring attorney for informational purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. Readers of HOATalk.com should not act on this information without seeking professional counsel. Please do not send any sponsoring attorney confidential information unless you speak with the sponsoring attorney or an attorney from the sponsoring attorney’s firm and get authorization to send that information to them. If you wish to initiate possible representation, please contact an attorney in the firm of the sponsoring attorney. Sponsoring attorneys that post messages here are licensed to practice law in a specific state or states as indicated in their message signature or sponsor’s profile page. (NOTE: A ‘sponsoring attorney’ is an attorney that is a HOATalk.com official sponsor and is identified as such in the posted message or on our sponsor page.)

Copyright HOA Talk.com, A Service of Community123 LLC ( Homeowners Association Discussions )   Terms Of Use  Privacy Statement