BEFORE A TURNOVER

Started by DottieS • 8 replies • 1559 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

DottieS (Massachusetts)
Posts: 34

Posted:

I sure hope you can help us......We are trying to have a turnover from the developer to the owners, We elected a board and the board found that there were many projects for the developer to complete so it disbanded until work is done.

In the meantime a Septic problem arose, where pipes were not cemented, and the developer is trying to pass the cost on to the owners . Can he do that?

Jonathan (New Jersey)
Posts: 14

Posted:

why would the Board disband? The Board should be proactively taking steps to work with the developer to address the problems and then hire its own independent engineer to do a transition study regarding these issues and making sure they are properly addressed. Then, if necessary, you should consult with legal counsel regarding the next steps.

PaulM (Pennsylvania)
Posts: 1,347

Posted:

DottieS: You need to check your official documents (Declaration) to learn at what percentage of sold units the Developer will 'turnover' to the residents.
It is the developer's decision, based on the docs, when this will take place.
At turnover, the Exec. Board is to be elected from community residents, and the Developer's 'board' is no longer in power.

If you are experiencing problems with unfinished projects, seek the local municipality office as your ally. The developer had to post a bond with them to ensure that all projects would be completed as contracted. There is a time period when all must be done according to code and then inspected and approved, or the developer cannot receive his bond money back.

You will find other posts on this forum under Developer transition.

DottieS (Massachusetts)
Posts: 34

Posted:

Thanks everybody for your advice and I did take a look at the developers transistion and very helpful.....

We have had two boards elected.....but we have a big problem.....we have yet to accept a budget as it is so carelessly given to us....some owners are paying wrong condo fees, never got the update from the developer, and work
that was suppose to be finished, He has charged us for...that is why,

I wondered what we were suppose to be paying for....I thought it should be just the services we use, not the repairs and painting ect....

If he does not have to turn over and we find that he is raising our condo fees, like twice as much...and we are not accepting the budget, do we still have to pay condo fees and not know what he is using them for....things we feel a developer should cover.

We have found many mistakes with the budget and no receipts ....????

We are still working with him .....and I am sure the same board will be elected.

But we are being so careful and some hate to go to lawyers right now because of the cost....

Who can we get in touch with here when you say an ally??????????? We really need
to get some steps together....We want a Special Meeting and have called for one, but he has not answered....

NancyD1 (Florida)
Posts: 447

Posted:

The BOD has to work with the developer to find out the true costs of everything before a budget is put together. You should work up a list of all common elements and ask for an average monthly and yearly cost for each item. He has to give these to you to formulate a true budget. If he will/does not provide the costs, call in the person/company that worked on that element to get the costs of maintaining and the cost of replacement and repair if something should go wrong.

The condo fees cannot be set to right amount until you get the costs. Make sure you do not release the bonds that the developer has. Check on the bonds that are record and make sure that the will cover the work that has to be completed. Do not pay for any work that the developer is to complete. Check your doc's to make sure this is not work the condo is responsible for.

Before complete transition get a reserve study done. This is a very needed chapter in the budget.

It may behove your association to hire an accountant to help with the first budget. He can set you on the right track and you will need someone to do your taxes anyways.

Jadedone4 (Virginia)
Posts: 495

Posted:

... to add to NancyD1's good post, also seek out (if funds are available) inspection teams. You will want an auditor (can assist with budget drafting as Nancy noted), an engineer (inspect physical elements), and if not part of engineer's creditials, get a reserve analysis (will tell you replacment estimates for your common elements and infrastructure - the "what if's...."

While you cannot "stop" a bond release you can reasonably engage the bond holding agency to respectfully hear the community's issues. Please remember that the builder/developer is ONLY responsible for claims made in the plans - they cannot and most likely will not be held to much more after that. So if the plans call for the cheapest, cost effective amenity, you are going to get just that... as long as it satifies "code" they have done their part/requirements. I will offer this as a suggestion, if you know that an element costs the developer/builder $100 to replace/install, and the community would be better off with the $200 model, engage them to make up the difference by the HOA, so that you have a better product on the frontend, that will hopefully last longer - bottomline, be reasonable. I ain't gonna be Christmas for the HOA, you might have to spend the night before putting all the stuff provided together with some crappy instructions...

DottieS (Massachusetts)
Posts: 34

Posted:

You all are great, At least I do not feel alone, I did not know where to start and will probley have to call on you all again, and than just think I will be able to help someone else when this nightmare is over.

We love this place and the Developer is a nice guy who just does not pay attention to details, and the Monies ???????? Yes we will have to get an accountant....first order of business.....

If I understand it.....the septic, I should go to the town and also find out who has the bond.....and have them here us out...is that first, outside of suggesting the developer get an accountant???????

Also I have the list from the Developers transistion to get together, which is very helpful.......and than a Lawyer???????

PaulM (Pennsylvania)
Posts: 1,347

Posted:

DottieS: Check out another poster's topic: Resident Budget Survey. You will see that it was suggested to check out your state's Planned Community Act or Condo Act to learn what the developer must turn over to the new 'resident board' to assist you with budgeting, and especially the capital reserve fund.

The municipal authorities, land development & code officials, can be of help once you explain the problems. Form a Committee and make an appointment with them. Once they are in your corner, the developer will be encouraged to complete all according to their codes and inspection.

DottieS (Massachusetts)
Posts: 34

Posted:

Thank you so much Paul.....I will start right away, I go to Fla for the winter so I need to send a letter as to what our committee is going to do....Should I include the Developer in these e-mails and let him know what we are doing?

I know call me Honest Abe......but I am one that thinks communication is great so that everyone knows what is expected of them and where everybody stands, but.....in this case are we playing cards?

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here