Builder Railroading

Hello everyone. I am seeking recommendations to represent the interest of the residents and challenge my builder's rejection of a voluntary community survey I plan to give to residents at a community meeting this weekend. My community has about 125 condo units contructed and cleard space for another 150 units. Needless to say our builder is still in control of the BOD. I apologize in advance for the long post but I wanted to be sure to put the challenges in context. Thank you.

Survey question:
Please rate your satisfaction with the following (1-10)
- Your condo
- Community Amenities (pool)
- Responsiveness (Board of directors, HOA, MgmtCompany)
- Speed to resolve (issues, complaints, requests)
- Landscaping/condo exterior
- Overall condition/appearance of the community.

Board response
Delete #2 – If the survey results indicated that homeowners wanted improvements then this would require an increase in the dues. Should have homeowners have concerns about the items in this block then they need to contact "Builder" (for their condo) or "the mgmt co" and we will address the issue accordingly.

Survey Question:
Please rank from 1-6 the topics you are most interested in learning about in your community communications.
- Timeline, site plan, sold/vacancies, sales prices etc community development.
- Clarity and Reminders of HOA rules and regulations.
- Board meeting minutes
- Community Financials (budget planning, expense management)
- Social Activities
- Service Provider resources/recomendations (handyman, pet sitters, house cleaners etc.)

Board response:
#4 – Remove Timeline, site plan, etc.; Board Minutes; Community Financials. The NC Non-Profit Act allows homeowners to review the records (minutes and financials) of the HOA; however, there is a process for reviewing. This implies that we will distribute these docs on a regular basis.

Survey Questions:
Please rate you satisfaction with the enforcement of the follwing violations (1-10)
- trash compactor/disposal
- Illegal Parking
- Pet Waste clean-up
- Noise Disturbances
- List other violation
- overall satisfaction with enforcement of community rules/regulations.

How often would you like to recieve community updates?
- monthly
- quarterly
- annually

Board response:
#5 – Leave “How often would you ….” and remove the satisfaction with enforcement block. The Board has a set policy on enforcing the violations. Unless the homeowners understand the policy then they will naturally reply unsatisfied and their comments will not alter this procedure. The Board is charged with this responsibility and how it is enforced is at the discretion of the Board.

Survey Question:
How often would you like for us to get your feedback via survey?
- monthly
- quarterly
- annually

Board response:
#7 – Remove. "Builder" is not in favor of surveys and this question implies that there will be periodic surveys.

Each resident who completes the survey will be entered in the drawing for a $100 Home Depot Gift Card.
NOTE: the Builder has only budgeted $150 for Community Meetings. The gave me $100 for food and I used my own money to purchase the gift card.

Board response:
Remove “If you would like to be entered……”. The CFO for "builder" has discouraged the use of gift cards by "Builder" for several reasons. "Builder" appreciates your willingness to purchase this gift card; however, they ask that you discontinue this practice in the future as it appears that "Builder" is not willing to make contributions to community. Plus, it violates their policy. Since we acknowledged the gift card in the flyer, the Board will allow it for this party.

What is your position with the Board? or are you on one of the committees?

Hi Nia:

I'm curious about your motivation behind the survey... I can see where the builder (who is in control until turnover) would not like the survey, as you wrote it.

If you have particular concerns, you might want to take them to the Board/Management to see if they can get resolved. If they can't, then talking to people who are concerned and getting a group of people to go to management/board would make sense. This feels more like a "fishing expedition."

I've managed HOA's, pre- and post-turnover. I think it would generally be more effective to work with the manager to resolve issues. In the meantime, get prepared for turnover (CAI has an excellent resource on going through turnover) and begin working on the issues that the Board will face once turnover happens (such as: is the budget realistic? Getting an engineering firm to check for construction defects... etc...).

J. Patrick Moore, CMCA

Nia: Not sure what your goal is, especially in view of your post's subject line: 'Builder Railroading.'

I do not see how the builder is 'railroading' you. The builder/developer does have responsibility for control of the community he has built until a certain percentage of lots are sold, then it (control) is turned over to the residents of the association.

It seems the builder still is in control at this point, and for you to initiate a survey to gain an understanding from new residents who have perhaps just moved into their units, IMO is very premature.

It would be wise to wait until the builder is no longer the one in 'power'. Once a Board and Committees are elected from the resident population, your efforts would certainly be useful to get the association up and running in the best possible way.

If I have misunderstood that the builder is still involved, then I apologize. Please explain further.

Dave, I take issue with you. Why do you think I post here other than to help individuals. I believe what posters are saying is that surveys will not sway the Developer. So it is best to wait on doing surverys until action can be taken by the homeowners. The Developer is not railroading; they are protecting their investment.

Dave, Your comment above about management companies is inappropriate and not welcome on this forum. You cannot make such a general comment about a whole profession, at least not here.

Here we have all different types of members, the vast majority of which are actual HOA board members. The people that take the time to post here do so to help others and comments like yours above DISCOURAGE those people from posting answers. Their expert advice has helped thousands of communities here so far and is very much appreciated by HOATalk and its members.

Please keep this in mind: Most of the members here are Board members looking for answers. The few professionals that take their valuable time to post here are providing those expert answers our members need. We should all be appreciative that they will give away their professional advice.

Nia, since you apparently already know about "repeated actions of BOD/mgmt co. inconsistent and selective responsiveness, lack of follow-through, selective and convenient adherence to BOD guidelines and policy", than rather than a survey what is in order is a letter to them all listing the specific complaints and suggested changes desired. This letter could also be copied to owners and request the Board respond to all owners.

With regard to your statement " "The Builder is protecting THEIR investment." Which I expect, but, not at the expense of the residents", what you expect and what you get may be two different things. But it is worth a try if you wish to expend the time and effort. Good Luck.

Nia: Since the builder/developer of your community is still in control (and actually only half-way finished building) he is able to set up a Board with directors of his own choosing. It would seem from your posts that you are the community resident on the Builder's Board at this time.

He is also able to contract with a property manager (of his choosing) to oversee association issues for him. Please realize the management company that the builder has in place at this time is paid by the builder and reports to the builder.

At this juncture, your best recourse is to carefully review your covenant documents which will detail the developer's role prior to the association turnover to residents; also, review your state's 'Planned Community Act' (access from Community Associations Network in yellow to the right of this screen).

The developer does have responsibility to the buyers of his units in the association and his role and responsibilities are stated in your covenant. If he is not fulfilling that which the covenant and the state says he must do, then he must make 'things' right and comply according to the covenant document he himself has officially recorded.

Be challenged, at this time, to devote your energy to learning about your own community's documents: Declaration, Bylaws and how they follow (or don't follow..?) the state law. Once you are informed appropriately, you can move forward with confidence to have the builder/prop.manager address your/resident concerns. Good Luck. Keep us posted.

Nia, what is the purpose of the Builder-Board to hold a community meeting and what do you, as the resident on the Board, hope to accomplish?

Nia, thanks for clearing the "builder" thing up for me.

At any rate, if you can afford it, I would still urge you to promote the survey. I would just make it clear that it did not come from them, since they obviously have little interest in what the residents think or want.

First of all, you are a member of the association, just as are all the other residents. If any one resident wanted to take the time and energy to send the others a survey, or even just "hello" notes or whatever, then they are perfectly free to do that. The residents will either ignore or answer/respond as they wish.

I'm not sure exactly what the flyer states what the purpose of the meeting is. When is the meeting, by the way? What is the length of the meeting supposed to be? Where is it being held? What do the builder and board think you are supposed to accomplish? What do they want YOU to do for them at the meeting?

If you are not representing the survey as THEIR (the builder/board) survey, but rather as an information gathering TOOL for YOU to do the job they (the residents) voted you in to do, then there should be no conflict.

Do you plan on distributing the survey before the meeting? Do you plan on the residents filling it out there? Are they required to sign it? Or is it strictly confidential?

Thanks for clarifying Michele. I am learning that corporate bureaucracy and HOA bureaucracy are quite different. :-)

I attached the flyer for your reference. It was established early on that this would be a community meet & greet and that I would leverage the forum to survey the residents. I created the agenda,objectives and the survey. The BOD (developer) and the management co elected not to be in attendance from the beginning.

The meeting is this Saturday. If I decide to solicit feedback for the survey I am sure I will leverage different approaches to collect the data before, on the day of and after.

I have a lot to consider and appreciate your input.

I concur Michele. I knew there was a flip side to this coin. I am wearing 2 hats as well and will consider all the advice offered.

Thank you all!

Robert, that's not necessary. Besides, the Meet and Greet is. That's what they gave her the $100 for and their entitled to that acknowledgment. But the survey is entirely separate from a meet and greet and is in reality a tool for her to do her job. It doesn't matter when or how she presents the survey to them. The meeting is NOT for the purpose of the survey, it's for the meet and greet.