What Is Developer Transition

By Author: Emmitt Shuler
Total Articles: 1
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As the number of community associations continues to grow, it is important to understand what a developer transition is, and how it affects the homeowners of that community. When a community association is being constructed, the developer has controlling interest over the association's spending, maintenance, and overall direction, until a certain percent of homes are sold in the development. The governing documents of the association typically outline the stipulations of the developer period and when a transition from developer to homeowners should occur.



Once the community is transferred to the homeowners a board of directors should be established to take control of the associations affairs. The new board of directors should work closely with the developer to receive important documents such as meeting minutes, budgets, rules and regulations, architectural standards, financial statements, and homeowner account information. During the developer transition period the board may need advice and guidance on how to properly run a community association. Once all pertinent information is received from the developer ...
... it would be wise for the new board to find a management company to handle the day to day operations of the association, and an attorney's office to handle collections and legal issues.



Once the developer transition is complete the board can appoint homeowners to serve on committees and assist them in performing their fiduciary duties. These committees may consist of the following: architectural control committee, landscaping committee, pool committee, and social committee. Although the board makes the final decision, these committees can be a great source of advice to the board.



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