How to transfer privatized HOA to a Corp HOA

JudyC (Texas)
Posts: 1

Posted:

I have been voted in as Treasurer for our HOA. The last property in the small division (12 homes) was sold this week which will result in the President and Chair's resignation.

I am going to be the sole person left with the entire HOA responsibility. This is beyond my ability from a time(I work full time) and financial investment perspective. The treasurer job has turned into a property management job- quite honestly.

I would like some advice on what steps need to be taken to transition this to a corporate HOA. What/who do you go to to have this process started?

Thank you for any guidance that may help.

JosephW (Michigan)
Posts: 882

Posted:

The first thing you do is start asking the other homeowners to pitch in and help. This is the best time to get things going in the right direction and to find volunteers to help. Try and spread the workload around and get as many involved at the beginning as you can. Its one way of creating "community".

Take a look at the articles on transition at:
http://www.communityassociations.net/developer_transition_main.html
There should be some checklists there to help.

By the way, I don't think you should let the developer just walk away. You will need an annual meeting at which to elect new directors. Don't accept their resignation until that's been done.

You are probably already an incorporated HOA,. I think what you are referring to is the transition from a developer-controlled association to an owner-controlled association. Check the documents to see if you're already incorporated. Also, check your state law:
http://www.communityassociations.net/state_laws.html
to see if there are specific requirements for transition to owner control.
If you have specific questions, after going through all of this, post them here and we'll try and help. What state are we talking about?

Joe

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