Question:
Our HOA has reached the percentage of non-developer controlled lots at 100% and we would like to start the process to have the homeowners in control of the HOA. The problem is the developer (declarant) never completed all of the amenities of our development and has left the state and cannot be found. As such, how do we go about the process without any cooperation from the declarant.
Thanks
– Karen
Answer:
Hi Karen,
The community may elect a new board of directors to transition control. The new board should familiarize themselves with the governing documents to understand their obligations to the community and how it must be operated. It may also be best to hire professionals like an HOA management company and attorney to help you with the transition in the absence of the developer.
It may also help to form a transition committee that can focus on the transition process. The HOA may also hold a meeting with the community to discuss the HOA’s current status and how to move forward with the incomplete amenities.
One challenging aspect may be transitioning the HOA’s bank accounts, financial records, contracts, and insurance policies. You may work with the relevant banks, vendors, and insurance providers and inform them of your situation. They may be able to help you find a solution to transition the HOA’s accounts and agreements. For further guidance, kindly consult a lawyer.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
