5 Tips to  Transition Your HOA From Developer to Owner

An HOA transition is when  an association leaves the developer's control  and begins to be managed by a homeowner-elected board of directors .

What is an HOA transition?

It's a slow process that takes a year to 18 months. When it's triggered depends on the state you're in, but often it's when  a certain % of lots are sold.

When does it occur?

Step 1: Sort your team

Inside your HOA, create a transition committee to communicate with the developer. Then, you'll need some professionals to help: 1 - Licensed civil engineer 2 - Certified public attorney 3 - Attorney 4 - Certified community association manager

Step 2:  Audit

The developer has the power to execute contracts on behalf of the association. The transition committee, alongside an attorney and manager, should audit all documents and contracts.

Step 3: Transition study

Step 3: Transition study

An important step is for the committee to set up a transition study with your civil engineer. They will inspect the common areas to provide the association with a list of any construction defects. It also provides you with  information on warranties & permits.

Step 4: Maintenance

The committee should have a list of maintenance items that the developer has fixed. There should also be a date for when maintenance will be under the new board's responsibility

Step 5: Finances

Step 5: Finances

Checking the developer's accounting records during the transition is important.  Your accountant can help you audit financial documents and to check the finances have  been correctly handled.

Communicate consistently:

Our bonus tip for you is about communication! The committee should aim to have the clearest and most consistent communication with the developer.  Try to be open and practice non-violent communication to maintain a cordial working relationship. Use email to have records, and take minutes during meetings,.

Download our transition checklist

Keep track of tasks and never miss a deadline!