Taking over HOA from Developer

What does your docs. say regarding percentage of homes sold or a timeframe for turnover to occur?

Assuming the developer is still solvent and wishes to retain control you MAY be stuck as you have no voting rights or BOD representation until turnover.

Google your state HOA laws to see if a forced turnover is even possible and what steps could be taken.

There are Virginia members here who maybe able to give you some "better" news.

Noa,

If the development is not a condo, VA Property Owners Association Act would apply. Which States that books and records are turned over on a simple majority:

§ 55-509.2. Documents to be provided by declarant upon transfer of control.

Unless previously provided to the board of directors of the association, once the majority of the members of the board of directors are owners of improved lots in the association and the declarant no longer holds a majority of the votes in the association, the declarant shall provide to the board of directors or its designated agent the following: (i) all association books and records held by or controlled by the declarant, including without limitation, minute books and rules and regulations and all amendments thereto which may have been promulgated; (ii) a statement of receipts and expenditures from the date of the recording of the association documents to the end of the regular accounting period immediately succeeding the first election of the board of directors by the home owners, not to exceed sixty days after the date of the election, such statement being prepared in an accurate and complete manner, utilizing the accrual method of accounting; (iii) a copy of the latest available approved plans and specifications for all improvements in the project or as-built plans if available; (iv) all association insurance policies which are currently in force; (v) written unexpired warranties of the contractors, subcontractors, suppliers, and manufacturers, if any, relative to all common area improvements; (vi) any contracts in which the association is a contracting party; and (vii) a list of manufacturers of paints, roofing materials and other similar materials if specified for use on the association property.

If the association is managed by a common interest community manager in which the declarant, or its principals, have no pecuniary interest or management role, then such common interest community manager shall have the responsibility to provide the documents and information required by clauses (i), (ii), (iv), and (vi).

(1996, c. 618; 2008, cc. 851, 871.)

I appreciate the replies so much - thank you. We don't have the majority of the land yet which is the problem. The economy hit hard and development stopped. We don't think the builder is very solvent though although we have no real proof at this time. I will research the links, etc provided and I really appreciate that. We just have to find some recourse to get this pitiful developer to do what they are supposed to do. I just don't see how they can take our money every year and not do anything for us or tell us what they are spending it on, etc.

Thanks again,
Amy

Noe,

I did get the OP frustration. I gathered from the two posts that they are frustrated that the development isn't finished. They are frustrated that annual reports are not being made. They are frustrated that annual meetings are not being held. This is all we know, that and the fact that the homeowners are calling a meeting - probably to discuss options.

Since you and Glen pointed out to read the governing documents, there was no need for me to repeat it. Therefore, I provided links to applicable State laws that will provided additional information and background for options when they have their meeting. To have the tools necessary to research the options available to them under the law.

Noe you stated that "I'm not going to wade through a bunch of links so, Specifically how would 55-509.2 and the other laws be relevant in this case?"

Lets face it, the Developer is probably going to throw out these same laws as a defense. Therefore, if someone doesn't take the time to see how a law will be relevant. They will not have the knowledge to know if the developer is quoting the law properly and be able to call them on it right there. They will not have the tools necessary to fully understand what they are getting into.

You and I and everyone on this board can not fight the fight for them. All we can do is help provide options based on our understanding of the issues (which typically isn't a full understanding) and the law as we know it (which may or may not be applicable to the Original postera State). The Original poster will need to (or should) verify to see if what is being offered is applicable to their situation and supported by their States law. All I did was provide tools for them to use or ignore at their option.