Legislature says HOA developers should hand over control sooner. Gov. Little to decide (ID)

A bill requiring more homeowner votes on homeowners association boards is on Governor Little’s desk. On Monday, the Idaho Senate unanimously passed HB 361 from Rep. Jon Weber, R-Rexburg. If signed, the measure would give homeowners in developments with HOAs earlier control over the boards governing their neighborhoods instead of leaving associations under total control […]

Manage Developer-Controlled Communities Effectively

Developer-controlled communities are residential developments where the developer, the entity responsible for the construction and initial sales of the properties, retains control of the homeowners association (HOA) during the initial phases of development. This control allows the developer to establish and enforce community rules, manage finances, and oversee the development’s progress in alignment with their […]

765 ILCS 160/1-50: 4 Things Every Illinois Common Interest Community Association Board Needs to Know About Developer Turnover

Developer turnover is a pivotal phase for any Illinois Common Interest Community Association. 765 ILCS 160/1-50 of the Illinois Common Interest Community Association Act (“CICAA”) governs the requirements for transitioning a common interest community association from developer control to homeowner control. Ensuring a smooth transition requires preparation and an understanding of the legal requirements under […]

Builder turns over HOA to homeowners, some neighbors clash

The builder of a fairly new neighborhood recently turned over the Homeowners Association (HOA) to the homeowners, and there’s been drama.  In July, the developer turned the HOA over to the people living in Fox Chase in Denver.  Nick Cox has been very vocal against the board. “Emotionally, I’m deflated,” he said. “Has just been […]

Housing Counsel: Good Transition for Successful Community

Question: I am serving on the Board of Directors of my community association and this is a critical time for us. We are a new community facing a transition from developer control. What steps — legal and practical — should we take so that this process will be successful?   Read the Q&A………………………………..

5 Signs You Need A New HOA Management Company

Your Homeowners Association (HOA) management company plays a critical role in maintaining the value and appeal of your community. They handle everything from financial management and administrative tasks to property maintenance and homeowner communication. But what happens when your HOA management company isn’t meeting your needs? How do you know when it’s time to make […]

Developer Turnover: 8 Things Michigan Condo Associations Must Know when Negotiating with a Developer to Avoid Paying for Construction Defects

Successfully transitioning control of a condominium association from the developer to the co-owners is critical for the long-term success of any Michigan condominium. When a developer exits a condominium project, it often requests a release of liability from the co-owner controlled board of directors. An experienced developer has an inherent advantage in negotiating a release […]

How To Transition Smoothly To A New HOA Management Company

Switching Homeowners Association (HOA) management companies can be a big change for any board member or community. Whether you’re looking for better service or fresh ideas, the transition process doesn’t have to be overwhelming. With careful planning and clear communication, you can make the switch as smooth as possible.  This article will walk you through […]

HOA nightmare at tiny home community (TN)

Property owners of The Retreat at Deer Lick Falls are seeking $250,000 in damages. According to the lawsuit, what was originally touted as a haven of tiny homes in Monteagle has become a developer-controlled nightmare…….filed the lawsuit asking the court to end the period of developer control over its homeowners association    Read the article…………………………….

Smooth Transitions: HOA Turnover Tips for Florida Developers

Developers who create residential subdivisions in Florida are typically obligated to form a homeowners’ association (HOA) to govern the community. Mandated by permitting authorities like counties, cities, and water management districts, the HOA manages the subdivision’s common areas, such as open spaces, retention ponds, stormwater management systems, amenity centers, parks, entry features, walking trails, and […]

Navigating the Transition Process with New HOA Board Members (CA)

Congratulations on your new role as an HOA board member! Your dedication to serving your community is commendable, and your commitment to ensuring the smooth operation of your homeowner’s association is vital. As you embark on this journey, it’s essential to understand the transition process and how to effectively integrate new board members into their […]

HOA Transitions from Declarant to Homeowner Controlled Boards

Transitioning an association from a developer-controlled Board to a homeowner-controlled Board can be a complex process with various challenges. However, with careful planning and execution, it can be a smooth and successful endeavor. In this guide, we’ll explore the essential steps and considerations for the newly elected HOA Board members to ensure a seamless transition,  […]

Community Association Transition Litigation and the Selection of Experts

In the realm of civil litigation, the involvement of “experts” can make or break a case. An expert is a qualified individual with specialized knowledge, skill, training, education, or experience in a particular field relevant to the issues at hand in the case. These experts are called upon to provide their professional opinions, analyses, or […]

Tips for a Successful Condominium or Homeowner’s Association Turnover (FL)

Several things that can be done by the Association prior to and immediately after turnover for the benefit of the community. This information will benefit not only any forensic engineering firm in performing a Property Condition Assessment Report, but the community operations as a whole.   Read the article………………………..

Homeowners vs Developers: The fight for HOA control in North Carolina

A drive down Grand Palisades Parkway supplies 20-years worth of the subdivision’s history in just three miles. There are new apartments, older homes, construction of single-family subdivisions and zoning changes planned for even more development.    Read the article………………………..

Leaving the Nest: Healthy Community Association Transition (NC)

North Carolina Community associations are typically developed by private developers that plan the community, build the infrastructure and improvements, develop the lots, and organize the property owners or community associations.   Read the article………………………..

CAI Best Practices: Transition From Developer Control

The purpose of this report is to provide associations (and, to some extent, developers/builders) with guidelines they can use to turn over a community association successfully and smoothly. The ultimate goal of transition from developer control is for the owners to be adequately prepared to take over association governance and operations effectively.   Read the article […]

Transition not substantial completion starts the clock: New Jersey amends statute of limitations for homeowner and condominium association construction defect cases

In?2017, the New Jersey Supreme Court, in Palisades at Fort Lee Condominium Association, Inc. v. 100 Old Palisade, LLC, et al., held that the statute of limitations for construction defect claims brought by a condominium association begins to run upon “substantial completion” of the structure.  Read the article………………………….

New Bill Clarifies Statute of Limitations For Community Association Transition Litigation Matters (NJ)

On Tuesday, January 18, 2022, Governor Murphy signed into law Senate Bill 396, which automatically tolls (i.e. pauses) the 6-year Statute of Limitations for construction defect claims by condominium and/or homeowner associations and cooperative corporations until the first election when unit owners take majority control of the association board (“Transition”).   Read the entire article……………………………….

Turnover From Developer Control (FL)

Anxieties amongst homeowners can run high at learning that their homeowners or condominium association will soon be going through turnover from developer-control. What is turnover, and what are its consequences?

Condo Column: The transition from developers to owners (NH)

Much like being a parent who raises a child, only to have the heartbreak of dropping that child off at college, there comes a time when a declarant, after building the units; getting the grounds landscaped in the spring and summer and plowed in the winter; paving the roads; and opening the clubhouse; says goodbye […]

HOA Transition from Developer

We are often asked, “When should we start preparing for our HOA to transition from a developer-controlled board to a homeowner-controlled board?” Our answer is always the same, “starting on day one from when the developer first hires a professional management company.”   Read the entire article……………………………….

Buyers at New S. Fla. Communities Must Diligently Protect Interests During, Post-Turnover

Generally speaking, the turnover process presents the initial opportunity for new owners and owner-controlled boards of directors to hire independent legal counsel, financial professionals, and engineers to conduct meticulous inspections of a community’s property as well as its rules and business records. Communities at this stage will need to diligently interview and investigate prospective service […]

Freeman Communities files counterclaims against class (DE)

Mark Dunkle, attorney for Freeman Communities, filed counterclaims against Nancy Green, a Bayside resident and the lead plaintiff in the class-action suit filed in Delaware Chancery Court. Dunkle claims Green did not follow Bayside’s charter in filing the suit and did not make a reasonable effort to resolve her conflict with the developer prior to […]

“Why Am I Being Deposed?” (NJ)

The unit owners in your condominium have been noticed for deposition in the pending transition litigation. Now they have come to you, the property management team, with questions. What should they expect at the deposition? What kinds of questions can they be asked? Did they do something wrong?   Read the article……………………………………..

Suit aims to give Bayside home owners a majority on its board (DE)

Attorneys representing the Bayside Community Association and home owners in the housing development who wish to have the majority of seats on the governing board, are continuing negotiations in the wake of two lawsuits.   Read the article………………………………….

Condo turnover meetings

When the developer starts a new condo project, they create and control the first board of directors for the development. Depending on the state or province, there may be a time limit by which the developer must appoint an interim board after the condo plan has been registered. The names and addresses of interim board […]

Tips for Making a Smooth Transition from One HOA Board to Another

Passing on the titles and responsibilities of one HOA board to another requires that everyone work together to make the process as seamless as possible to ensure continued success of the community and to avoid any unnecessary mistakes.    Read the article………………………………….

HOA transitions

When an HOA is turned over from a declarant, developer or builder, and control is given to members who live in the development, this process is referred to as the transition. HOA transitions are critically important to the future health and stability of developments. The group responsible for taking over will almost certainly require professional […]

COMMUNITY ASSOCIATION TRANSITION: CONSTRUCTION DEFECTS, IMPLIED WARRANTIES AND CONSUMER FRAUD

For every condominium and homeowner association, “control” is eventually transferred by the developer to an owner-controlled governing board after construction. This is called “transition.” A successful transition is one in which the owner-controlled board works with the developer to ensure appropriate governance, adequate financial resources, and a properly designed and constructed community. But what happens […]

New Board? How to Make the Transition as Smooth as Possible

Typically, board transitions happen after elections at a homeowners’ association (HOA) annual membership meeting. Voted in by community members, new directors volunteer to take on the duties of the board and the great responsibility that comes with it. Knowing the weight of the role, it’s important the transition of old board to new board is […]

Transition committee and construction defect claims (FL)

Q: My new condominium will soon be turning over from the developer. I am a unit owner and have been selected to serve on the transition committee, which has been primarily tasked with determining whether the developer has any obligation to make building repairs, etc. What are some things the transition committee should be thinking […]

UNDERSTANDING THE DIFFERENCE BETWEEN CONDOMINIUM AND HOMEOWNERS’ ASSOCIATION TURNOVER (FL)

Previously, I published a blog reviewing when turnover occurs for a homeowners’ association only. At first blush, one may conclude that condominium associations and homeowners’ associations would have the same or nearly identical requirements for when turnover occurs. However, the truth is quite opposite. Florida condominium association are governed by Section 718, Florida Statutes compared […]

When Does Turnover Occur For A Homeowners’ Association (FL)

Turnover is a vaunted date on the calendar for every homeowners’ association. Knowing at what time turnover occurs is necessary for a homeowners’ association to properly plan and effectuate the transition of board control from the developer to the owners.   Read the article…………………………..

Transition Gets a New Condominium Community Off to a Good Start ? Or Not

Life is full of transitions. In the life of a community association, the most important transition by far is the one that transfers control of the community ? and responsibility for it ? from the developer to the owners. A successful transition will set the community firmly on the path to self-governance and financial health. […]

How Does Transitioning HOA or Condo Community Accounting Work?

Some Boards are hesitant to change accounting mid fiscal year. The fear may be that the accounting for the fiscal year end will be convoluted or inaccurate and can interfere with a year-end audit or tax filing. Or the fear may be that it is a lot of work. You don’t have to fear the […]

What Every HOA and Condo in Transition/Turnover Should Know About Florida’s Statutes of Limitations and Repose

We are frequently retained by homeowners associations and condominium associations who have just undergone transition/turnover from developer control to control by the unit owners other than the developer. Two of the first questions we ask them are 1) what amenities and other common elements does the association own or is it required to maintain; and […]

A Developer Controlled HOA

An HOA is created before the ground is broken for the first home. The developer-controlled board is more or less just in charge of keeping the community afloat until the community is finished (or mostly finished). In theory they have all of the same responsibilities that an owner-controlled board has, however, in practice, the board […]

When does the HOA Belong to the Homeowners? (MD)

So you have done it. You purchased that dream home. It is brand new, and you worked with the builder for months, agonizing over each critical detail. And it is yours! Now it is time to protect that investment and turn your community into your village. How do you go about doing that?   Read the […]