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RobertW35 (Florida)
Posts: 48
Posted:
Good Morning.....We are just in the beginning stages of a Developer Turnover in our Florida Community. First question is, Does anyone know of some reading information where I can get the step by step process in how this Turnover is performed. Like what obligations does the current BOD have ? What steps the community must take prior to the turnover to achieve a successful turnover for the community ? We have 1 community resident that sits on the BOD representing us. He was elected when the community reached 50% occupancy. Note that we are a 55+ community. My last question is that we have a new resident (4 months) who wants to assemble a group of residents together (said that he will include the whole community) to list all the concerns of items that are not completed or have not been repaired properly or fast enough for him, to the BOD demanding answers. He has totally by passed the resident representative on the BOD. Can he do this ? Is this good for the community or is he a troublemaker? A lot of community members are upset at the way he is trying to jump in and handle this.
ElleN (Idaho)
Posts: 4,420
Posted:
-- I believe hiring a company to do what is called a "Transition Study" is appropriate. Member DavidG45 has experience with this. IMO you should watch especially for his posts and read his thoughts.

-- Are you aware that the Housing for Older Persons Act (HOPA) requires that certain surveys of the residents be done for the HOA every two years to continue in its legal status as a 55+ HOA? If you want more information about this, ask. The big question is: Has the developer been doing these surveys?

-- Regarding the one resident (call him "Jones") who has ideas about how to proceed: Do the Bylaws say that owners have to go through the one owner-director for questions? I doubt it. On the other hand, if Jones thinks he can demand answers and he will get them, he is mistaken. Jones and other owners are limited in what they can "demand." Besides, asking politely in the required open forum segment of board meetings is always the best first step. If you want to know more about the statutory requirements for the latter, ask.

-- All owners interested in a proper transition should start by reading FS 720.307, as shown here:
http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0720/0720.html
TimB4 (Tennessee)
Posts: 21,059
Posted:
Turnover/Transition Resources:

Transition from the Community for Association Research

Developer/Homeowner Transition: A Guide To Success

Developer Transition in a Community Association

Developertransition.com This website is intended to specifically address the issues facing townhome, condominium, and homeowner associations in North Carolina. [still has good general information as well]

What You Need to Know When the HOA Takes Over from the Developer 2020 article from TopRetirements.com

Developer-HOA Transitions (Navigating the Process) From a FL law firm

I've also attached a transition checklist that has been provided many times on this site.
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DavidG45 (Delaware)
Posts: 994
Posted:
Quote:
Posted By RobertW35 on 07/09/2023 3:43 AM
Good Morning.....We are just in the beginning stages of a Developer Turnover in our Florida Community. First question is, Does anyone know of some reading information where I can get the step by step process in how this Turnover is performed. Like what obligations does the current BOD have ? What steps the community must take prior to the turnover to achieve a successful turnover for the community ? We have 1 community resident that sits on the BOD representing us. He was elected when the community reached 50% occupancy. Note that we are a 55+ community. My last question is that we have a new resident (4 months) who wants to assemble a group of residents together (said that he will include the whole community) to list all the concerns of items that are not completed or have not been repaired properly or fast enough for him, to the BOD demanding answers. He has totally by passed the resident representative on the BOD. Can he do this ? Is this good for the community or is he a troublemaker? A lot of community members are upset at the way he is trying to jump in and handle this.


Robert

This is a topic on which you are likely to get some very good advice on this forum. However, there are some questions we will all need about the community:

* How many homes are planned, and how many are complete?

* Do you currently have a property management company in place?

* Do you have clubhouses or other amenities?

* When you refer to the "current board" to whom are you referring? I assume you mean the board that is still controlled by the Developer.

* Have you read the Bylaws to see when you are required to hold an election for your new board? In some states this is guided by state law, but I believe often an Association's Bylaws are written to reflect state law on matters like this.

Some things I can say about what you have posted:

* First, understand there are two different things that happen. The first is termination of developer control of the Association. This is when the homeowners elect their own board and take over responsibility for billing, rules enforcements, finances, etc. The other event is transition of ownership of the common areas from the developer to the Association. This is where you will want to hire a company with experience conducting Transition Studies. That company will document the deficiencies, and you will use that report, along with local governments, to ensure the developer has met all of his responsibilities based on the community plan that has been filed.

* The loud homeowner is free to say and do any of the things you describe. What he lacks is authority to take any kind of official action. What he will want to do is run for the board when you hold your election. However, if right now he wants to coordinate an effort to itemize all deficiencies, that is harmless and could probably he helpful during transition stage.

* If this person, however, is bringing his grievances to the Board, he is barking up the wrong tree. Neither the current board nor your owner controlled board are responsible for completing everything in your community. Those things are the responsibility of the Developer.

I would suggest you take a couple of hours and consume the links that TimB provided. This is pretty complicated stuff, but with a few hours of earnest research you can be better-versed on the topics than 99% of homeowners, and you will be able to discuss these things intelligently with your fellow homeowners.

KerryL1 (California)
Posts: 14,550
Posted:
Tim's list looks good and so does David's advice. Yes, please do give us info about your HOA.

You may be able to use the guy who's making lists as some kind of a helper. I'd try to coop him--get him on your side and "appreciate" his help. Turn him + others into an actual committee about which you'd write a charter to j h keep him in line. When Our twin condo 25-story towers opened in 2001, before I owned here, the new Board appointed an ad hoc (temp, single interest) Committee of interested owners to help make a punch list of items that needed correction or repair. They called it the Building Committee.

Otherwise, from what I could gather in old minutes, they also relied on the large full-service management company that had been hired by the developer to conduct inspections.
The Board also hired an engineering company to have an onsite buidlng engineer and his firm also made punch lists. In addition, that firm complied a Maintenance Manual which included every item that would need maintenance, repair and/or replacement and complete info about each & phots of each. Yes, it's huge. This will be needed by your management staff and also your reserves analyst.

The Board failed to hire a reserves specialist and instead relied on the reserves estimates of the developer, which the state requires before buildings can "open." We learned a few years later that the developer's reserve study underestimated the replacement cost of some big ticket components and overestimated the useful life of other big ticket items. The obvious reason was to keep monthly assessments unrealistically low in order to sell Units! Watch out for that one! Hire your own certified reserves analyst or specialist.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Robert

Do as Kerry suggests:

You may be able to use the guy who's making lists as some kind of a helper. I'd try to coop him--get him on your side and "appreciate" his help. Turn him + others into an actual committee about which you'd write a charter to j h keep him in line. When Our twin condo 25-story towers opened in 2001, before I owned here, the new Board appointed an ad hoc (temp, single interest) Committee of interested owners to help make a punch list of items that needed correction or repair. They called it the Building Committee
RobertW35 (Florida)
Posts: 48
Posted:
Thank you to All for the very good advice.
Ellen : I am aware of Hopa. As a matter of fact I have asked for the Census report that the Management Company said they have performed this year. The management company said that it is not a state requirement anymore but since it is in our CCR that they will supply us with one. Are you aware of any current changes in Florida ? Or know where I can research this material? I will read the current regulations you have sent the link to. I believe I perused them at one point also. As far as the "jones" resident, he has made a point of stating that for 3 years we have had certain problems that have not been resolved and that he will get results and has totally by passed our current resident who sits on the BOD as the community representative. Thank you.
Tim: Thank you for the list of resources and the checklist. Very helpful. Much appreciated. I guess I have a lot of homework to do.
David: Thank you for your advice. I really appreciate your expertise. The following answers to your questions.
1. 577 Homes Planned. 483 Complete. They are looking at Turnover maybe by end of year but definitely by first quarter next year.
2. The current Management Company (Leland) has only been with us for 9 months. We had a previous Management Company who was terminated for not performing their duties correctly. One of the CAM's was stealing and manipulating the budget. I was actually the resident who discovered this because I review the budget monthly on my own and ask questions if needed. This Mgt Co. is hired by the Board of Directors and answers to them. We have no control yet until Turnover.
3. Amenities - Pool, Clubhouse w/ Gym, meeting room, yoga room. Pickleball courts, Bocci ball courts, Dog Parks.
4. Yes, current Board is controlled by the Developer.
5. Yes I will review the By Laws and other Docs that we received at closing.

THANK YOU ALL AGAIN. I'm sure I will be chatting again. I appreciate all your time.
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By RobertW35 on 07/09/2023 4:09 PM

Ellen : I am aware of Hopa. As a matter of fact I have asked for the Census report that the Management Company said they have performed this year. The management company said that it is not a state requirement anymore but since it is in our CCR that they will supply us with one. Are you aware of any current changes in Florida ? Or know where I can research this material? I will read the current regulations you have sent the link to. I believe I perused them at one point also.
The state no longer requires submission of certain paperwork. However for protection from fair housing complaints (at both the federal level and state level), both federal law and state law still require the HOA to complete the surveys every two years (and I presume preserve the records of this survey).

Your manager company is sorely mistaken if it thinks the surveys do not need to be done.

Why the state no longer requires submission of certain paperwork: In 2020 the Florida legislature passed a bill into law that deleted certain Florida requirements for a HOA seeking exemption from familial status discrimination via HOPA qualification. Under the new law, such HOAs no longer have to (1) register with the Florida Commission on Human Relations; (2) submit a letter to the commission stating that the facility or community complies with [HOPA qualification/verification stuff yada] and (3) a bit more. See https://ablawfl.com/florida-changes-registration-requirements-for-55-communities/
RobertW35 (Florida)
Posts: 48
Posted:
THANK YOU Ellen

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