MD HOA Transitions to New Board (homeowners)

I moved into a new community about a year ago. The community is roughly 3 years old. Our HOA recently transitioned to a new Board (homeowners) and voted for officers. I was elected President because I have been doing a lot to get the community together and updating roads, lights, etc. I have no experience as a Board member of an HOA. The problem is, nobody on the Board knows what comes next. I did send the Builder and Management Company an e-mail stating that we voted for the officers and who they were. I inquired as to what should take place to ensure a smooth transition and if the terms of the officers were correct. The only response I received was that the terms of the office was correct. NOTHING ELSE. They probably have residual misguided feelings towards me because I have the audacity to ask questions and have made an effort to get the community more involved. I take it they are not going make it easy for us.

The problem is the old Board have been collecting monies for 3 years now and practically doing nothing. Every year there is no money to carry over to the next year and we don't see any of the money being spent in the community. The management company is a joke and shady to say the least. The only yard that is pleasing to the eye is the Model Home...beyond that, it looks like swamp land and Beirut. It's quite embarrassing. They are still building and have 20 more homes to sell so the Builder is going to be around for a little while. I don't know why no one has made a big fuss but I suspect no one really has the time nor wants to get involved because it may be its work to do. Okay, well, work is the only way to have a nice community!!!! I want to know everything I need to know about being on the Board of an HOA and how to transition from the previous Board without egg on my face or feeling incompetent because I want to ensure that my community is the best place to live in the state of Maryland!!!!!

Please, can someone tell me:

1) what should be the 1st step I take as President of the HOA?

2) should I write the letter informing the community of the new Board and officers or should this be a step for the Builder or Management Company?

3) What do I need to do with the old Board as far as finding out the financial resources available?

4) Should I get an audit done immediately to find out what financial shape we are in (if funds available?)

ANY INFORMATION WOULD BE GREATLY APPRECIATED!!! THANK YOU SO MUCH

Hi Donna:

I think you will be great.

Here is the link for the Maryland State Statutes in case you need:
http://www.michie.com/maryland/lpext.dll?f=templates&fn=main-h.htm&cp=

The association statutes are under the Maryland Code / Real Property / Title 11B

§ 11B-106.1. Meeting to elect governing body of homeowners association. Not only describes the meeting to elect, but also lets you know exactly what the developer is to turn over to you and within certain time periods.

This section also protects you from the declarant/developer making anything difficult as it states:

(f) Failure to comply with section.- If the declarant fails to comply with the requirements of this section, an aggrieved lot owner may submit the dispute to the Division of Consumer Protection of the Office of the Attorney General under § 11B-115(c) of this title.

So hold their feet to the fire and make sure you get everything required and you need.

If your board dislikes the management company … now is the time to eliminate them as most state statutes allow the HOA after transition to cancel any contracts made by the declarant prior to transition. Boot them out and depending on the size of your HOA you might consider the homeowners operate without a management company for a couple of years to more quickly build your reserve funds. After that time then consider going to management company if everyone desires.

Per your questions:

1. First step is to be sure to read all your HOA documents and state statutes if you have not done so already. I have a copy of all documents including state statutes in a binder where I can highlight info if needed or mark pages to reference with post-it notes, etc.

2. Your board is now in control of the HOA, you are the ones who should be communicating with the other homeowners. I would recommend not having developer communicate as he will be fading out of the overall picture. If MC is not very good company, then you also do not want them initially communicating. This way you insure you get off on a good foot with everyone and your board is communicating and you know is being done in a positive manner.

3. & 4. The Developer is to turn over all financials. After reviewing the board can determine if need an audit (some states may require at time of transition via statutes, so check your state statutes). It could be the information given all balances out and is OK; however, if there are questions get professional help now while you can still more easily go after the developer if needed.

DanielH1

Thank you so much. All of your information has been very helpful. I am sure I am on the right track now.

Thanks again and have a great weekend!

Hi Donna ... you are very welcome.

What items are the HOA's responsibility to maintain for your subdivision?

Anyone know of a good and reputable HOA Management Company in Maryland?