New HOA...New Election..Where to start?

Started by NormanG • 7 replies • 1508 views

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NormanG (Arizona)
Posts: 38

Posted:

I know of an HOA that will be electing board members in the near future. My question(forgive me but I do NOT know how to ask it properly B U T ....)where does one start? I would be very very concerned about the bookkeeping and if a treasurer is elected(and there will be) HOW do they know what type of books to keep, etc etc.. I think that keeping books will be extremely important..... if nothing else to make sure that no fault is eventually given to any Board member for spending, etc etc.. Any brief ideas on this?

PaulM (Pennsylvania)
Posts: 1,347

Posted:

NormanG:
I am taking from the wording in your post that you are a new community with its first Board to be elected.
Has your community transitioned from the developer/builder control and his Board to now electing a Board from the resident population?

Your covenant documents should explain how you go about the transition into a full association controlled by residents for residents. It should also explain the Board's fudiciary duty to make financial info known, what type of reports, and how often and also the Board members' offices and roles/responsibilities.

If the Builder/Developer had a property manager to oversee things while he/builder was in control, it may be well for your community to perhaps keep this manager on for a short while until you get up and running. Or, in many cases, associations prefer to seek services from a different Property Mgr. from the one the builder used to ensure the loyalty is totally to the residents.

If you post further details, many here will be able to assist you in your concerns.

JudyS6 (New Jersey)
Posts: 2

Posted:

If you are in transition from a developer then search this forum for: developer transition

You will find a great checklist from RogerB and good comments from may others on the topic.

NormanG (Arizona)
Posts: 38

Posted:

Has your community transitioned from the developer/builder control and his Board to now electing a Board from the resident population? ...... The answer to both is YES.. Thanks for the GREAT comments.. I will check the archives on this site for transitions, etc

MaryP (Texas)
Posts: 1

Posted:

How do I contact RogerB. Would like to get a copy of the checklist you referenced. We have a small community and are wanting to establish a HOA from our developer. We are in the learning stage and any information would be appreciated.

RobertG (Arizona)
Posts: 505

Posted:

Have you looked into any educational materials/courses? There are plenty! I would suggest to see if your city has any type of HOA training academy. If you do any reading of the posts on this forum, you will notice there are a significant number of board members who really don't have a clue how to execute their jobs. Many believe that "just because someone did it this way before, it is ok" is the acceptable way to proceed. Don't think of it as a group of people we all like and know and are here to have a fun time. Even if you have just a few homeowners, the importance of how you conduct your actions is the same if you have 1000 homes. Take it seriously and as a result, you will actually have more fun when everything runs smoothly.

Remember you are not professionals. Rely on professional advice whenever you can.

RobertG (Arizona)
Posts: 505

Posted:

RogerB (Colorado)
Posts: 5,067

Posted:

Mary, attached is a copy of our checklist when transitioning from Developer's to Homeowner's Board.

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