New HOA

Started by GaryP4 • 2 replies • 585 views

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GaryP4 (New York)
Posts: 1

Posted:

New York (upstate) question.
We have an HOA with 40 out of 80 units sold. The developer and his family are the 3 member appointed board. Transfer of control will not happen for 7 more years or until 100% of the units are sold. Is there still a requirement for annual meetings and accounting of how the HOA fees are being used?

SheliaH (Indiana)
Posts: 6,964

Posted:

Depends on what your documents say (read the bylaws and CCRs, and ask an attorney to review them if you have questions). However, in most cases I've seen, the developer can do whatever he wants as long as he's still running the community - even if it would make sense to have an annual meeting and show homeowners the budget. You might want to talk to the developer and make the suggestions. Transparency can help in selling homes because potential buyers may be more impressed by a developer who keeps homeowners in the loop as opposed to just taking the money and running away as fast as possible.

You might not have to wait 7 years, though. Depending on how homes are selling, some developers leave sooner than expected. The developers of my community (there were two) both went bankrupt and it was turned over to homeowners when the the community was 75% done.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

DouglasK1 (Florida)
Posts: 2,046

Posted:

There might be some state laws that have a bearing, but you'd either have to search for them or see if anybody here from New York responds.

Escaped former treasurer and director of a self managed association.

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