Transition to Homeowner Control problems

Started by VirginiaG • 5 replies • 1735 views

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VirginiaG (Georgia)
Posts: 11

Posted:

State is Georgia. The transition from Declarant to homeowner control is scheduled within the next two weeks. It appeared to be fairly straightforward; homeowners volunteer for Board position; at transition meeting Board is elected; transition of control documents between Declarant and HOA Board is signed. Then new Board meets to review documents turned over to them and begin making governing decisions for HOA. Now, a few homeowners feel the transition meeting should be boycotted--no homeowner should volunteer or be elected to serve on the Board until certain items are completed by Declarant--these are items controlled by the City and County, not the Declarant. Namely, final topping of streets, correction of a storm drain that is crumbling. What happens if no one steps up to serve? Does the Declarant keep control? How to respond to the homeowners who are driving the protest. After waiting so long, I hate to think we cannot begin to govern ourselves.

LarryB13 (Arizona)
Posts: 4,099

Posted:

Quote:

Posted By VirginiaG on 07/03/2014 1:29 PM

How to respond to the homeowners who are driving the protest.

Remember the old Arab adage: "The dogs may bark but the caravan moves on."

You will always have those who will find some reason to protest. Let them bark while you move your caravan onward.

RogerB (Colorado)
Posts: 5,067

Posted:

VirginiaG,
Good luck. After transition the homeowners elect directors to the Board of Directors and they now have most of the control. If homeowners protest answers should be provided for their concerns. This is a very significant event, if not the most, in the life of your association. Please read the attachment on transition from the Developer.

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GlenL (Ohio)
Posts: 5,491

Posted:

Virginia while the naysayers are sitting in the corner pouting the new Board should be working with the City to make sure no performance bonds are released to the Declarant until he completes his punch list. Then IMHO the Board should hire a structural engineer to make sure anything the HOA is responsible for is built to code or specifications whichever is greater while everything is covered by the Builders warranty, this can be the basis of your first reserve study.

Trust but verify. - Ronald Regan

Studies show that 5 out of 4 people have problems with fractions

VirginiaG (Georgia)
Posts: 11

Posted:

What happens if no one steps up to be on the Board? Does the Declarant remain in control even though they want to turn control over to the Board. Can the declarant just walk away?

GlenL (Ohio)
Posts: 5,491

Posted:

It's always hard to play the what if game but if no one is willing to step up and serve then the Declarant could ask the court to appoint a receiver to handle the HOA's affairs. This person usually an attorney would be paid from the HOA's assessments and s/he would most probably hire a Management Company to oversee the day to day operations, again paid from assessments which he would have the power to raise to insure everyone was paid. They would remain as overseer until your fellow homeowners convinced the court that they were willing to act as adults and assume responsibility. Something I might point out they voluntarily agreed to when they bought.

Studies show that 5 out of 4 people have problems with fractions

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