No Meeting, No Response, No Repairs, No Nothing

MikeK5 - Welcome. You are not ignorant. Probably just at the beginning of expanding your level of consciousness when it comes to living in your condo association. The developer retains 60% of the association, so obviously is willing to cut it's nose (40%) without risk of spiting it's face, or so the developer thinks. Not familiar with Chapt. 703 of WI law, perhaps you could site it for us, or provide a link for our research and guidance. Important thing is for the owners to toe the line with the developer and keep their misgivings on the down lo if you know what I mean. Reason is it's in your best interests for the units to sell out as quickly as possible. Not sure how the WI real estate market is fairing in comparison to other states. But the risk to buyers in all types of new construction property regimes is that they may pay more than future buyers because of developer incentives. Not sure how your property tax structure works with your community, but some taxes here in the Northeast are based upon a percentage of the sale price rather than on an assessed land and improvement value. Luckily mine was the later. With 40% owner occupied it may be time for a couple owners to be elected to the association Board. Do you have a copy of your governing docs, sometimes called a public offering statement inclusive of master deed, declaration of cc&r's (covenants, conditions, and restrictions), articles of incorporation, by-laws?

Everyone will tell you to read your documents. You may still be in a Developer Control period where the Developer has free reign to do about anything. That may not be good business, but it maybe legal. Read, Read, Read the documents.

MikeK5: As a NEWBIE to condo community living, it is important for you to educate yourself in the restrictions as presented by your official documents, CC&Rs. Yes, the state info is important as well, but for your intents and purposes, it is imperative that you know what your association regulations are.

The developer at 40% of units sold, is still in control of your association; hence, the reason for minimal communication with the residents who presently make up the association. However, that's not to say there should be some effort made to reach the residents especially if this will be a period of time until control turns over from developer to residents. Your documents will dictate to you at what point (percentage of units sold) the turnover will take place. Until that time, you are somewhat at a disadvantage.

"We do have the declaration and by-laws. As far as the owners know there is no assoc. other than the developer's one contact who does not return calls or make repairs that are to be taken care of by the assoc. IE: "exterior windows and external finishings". Note: IF the developer dedicated this development as an Association, that is what you have bought into, and also into the restrictions that go with it. The fact that the owners may not know there is one does not make it true. All residents at settlement of their purchased unit should have received official documents and this is what dictates your governing structure (Exec. Board), your restrictions, and your assessment fee with payment due to fund common area expenses as listed in the Declaration.

Pertinent to repairs on windows and external finishings, this is not an Association issue. Association concerns do not include structural issues between builder and unit owner. These must be settled between the two of you according to your unit purchase agreement.

Some questions: Is there one resident as a Board member on the Developer's present Executive Board? Does the Developer have a Property Mgmt. Company as a contact for residents and to have questions answered? Are you presently paying an assessment fee (as stated in the docs) and to whom are you sending payment?

Hi Paul,
According to our declarations "the assoc. shall be responsible for the fondation, load bearing walls, roof, exterior windows and doors, external finishings..." so being that the builder/developer is the assoc. at this time should they not respond to such? No resident is a board member and no property mgmt co. as a contact. At this time they contract lawn and snow removal and all assoc. fees are going to the developer, which is not providing any financial disclosure wich is dictated by WI law Chapter 703.161

MikeK5: According to "the assoc. shall be responsible for the fondation, load bearing walls, roof, exterior windows and doors, external finishings...reread this portion and cite whether the responsibility lies with the Association FOR REPAIR AND MAINTENANCE of these noted items. Your present concerns seem to be with the construction, is that correct? Wouldn't the builder at onset of the construction be the responsible party for the foundation, load bearing walls, roof, windows/doors, finishings?

Financial disclosure needs to be communicated to residents, especially after the time period you have invested here--18 mos. That's 18 mos. of assessment fees being collected and paid to the developer as the association. With only 40% of units sold, and the documents stating the developer is able to remain until ALL units are sold, you have a long road ahead.

Have you sent a certified letter requesting a financial report? Are you able to rally other residents to sign the request with you and ask for a report? And a meeting to review? It's worth a try.

You have purchased a condo unit with "Association" Restrictions. You need to communicate the restrictions back to the Developer from the documents He and His Attorney initiated. Review the portion of Bylaws indicating how the Developer is to govern while he is in control. Also, refer to your state's regulations on what the developer is to render to the Resident Association, as dictated by WI law. Finally, I am certain you are willing to be responsible for your part in the Association (fees & compliance to restrictions), but only to the extent the developer is being responsible on your community's behalf.

MikeK5: Again, I want to repeat, the construction issues you have noted are NOT Association concerns that the Board would be spearheading or involved with as the governing body of your community.

..."siding blowing off the side of my unit and a large crack in the outside pane of a major window in another unit." Further, you state "I have all the ammo I need from the bylaws/disclosure materials/state law etc. I believe I will round up the posse, so to speak, and send a certified return receipt letter with the assoc. members signing off on it."

What you are proposing is to provide leverage and strong encouragement to the builder to own up to his end of the agreement and provide a level of construction quality to what you have purchased. This is fine and may be in order; however, just to be clear, this is not an Association issue. It is between residents and builder and not a situation whereby Association governing documents will apply.

Mike,
The Developer and the association are NOT one and the same. Right now, the Developer handles business of the Association but according to all documents, they are not the same. Any issues that you are having with structural and infrastructure are Developer responsibility until you have had a legal turnover from him. Your association members/Board of Directors will probably need to sign off on Boands and documents. The Developer may set up the first Board and still be involved with decisions until all of the Bonds are signed off on. Until then, you must have some construction waranties to cover structural defects. Go after him until you get some resolution.

MikeK5: If you digest clearly Donna's post, you will see what the difference is. We are trying to guide you in the difference between Association matters which occur after developer turnover and construction matters which are between owner and builder.

Further, the docs clearly state assn. responsibility in the section for Repair and Maintenance. This is correct as it refers to repair/maintenance as an Association responsibility AFTER the initial and completed construction by the builder/developer, and AFTER turnover to resident control and responsibility. That's why it's so important to get with the builder to ensure he makes good on your own personal construction which you have purchased from him. Surely, there is a warranty against defective materials and as a reputable builder, he needs to assume the responsibility for making things right at the start of the association community, and prior to the return of his bond money from the local officials. Keep after him, continue making calls, and if necessary, go in person to his office.

Mike,
Another thought that I forgot to add. We had a smooth turnover because we held the Bond back until the Developer did repairs that we had deemed as nescessary and had not been done properly in the beginning. We paid for an engineering study which found several defects which would have been under "Capital Repairs" if we had not spotted them early enough. It sounds like you are having some structural issues that he will not address. All that I can say is Don't cave in and "PUT THE SCREWS ON HIM". These guys have got licenses and reputations to protect so don't be quiet about this if he doesn't shape up.

Mike,
Are you paying dues or assessments. Do you have a Board of Directors? Then I can answer those questions about minutes and financials. The Developer does not have to provide you with financials if you are not paying dues.

MikeK5: Refer to your documents. They will be give you the confidence needed in going forward.

The Developer filed with the appropriate officials that this is an Association to exist under certain Restrictions. You belong to an Association now; you are paying your dues to fund the Association's responsibilities. But, the Association is under the CONTROL of the Developer until turnover. Your documents, "Declaration" under portion of "Declarant's Rights" will advise you WHEN turnover is to occur and hopefully the units will sell to make it happen soon. As Donna stated, that's when a meeting will be called to begin the Association under Resident Control and Government according to the documents.

But, until that time, your documents/Bylaws under "Executive Board" will clearly state how this is to be accomplished under DEVELOPER CONTROL prior to turnover. It will usually be stated how much time is to pass AFTER "conveyance of number of units sold" that a meeting will be called for the purpose of election. Again, this is under developer control, and the Board will consist of HIS chosen people who will be looking out for HIS interests, and maybe, if you are lucky, he will ask ONE resident appointed from the community.

You mentioned a Manager. Is this a Property Mgr. and is this the office you send your fees to? If so, they are also set up by the Developer to oversee his interests.

Not to paint such a bleak picture, but you need to use this time to learn the documents, study them, know them and then use them and their 'verbiage' when wanting to make nroads. Use a highlighter, make notes in the margins, be the go-to person for answers when one asks, "...but, what do the documents say?"
You owe it to yourself to know the specifications and restrictions of the major purchase you have made--your home and its environment. Good Luck to you and Happy Studying!