HOA transition and turnover is the transfer of legal control and operating responsibilities from the developer or builder of a community to the homeowners' association (HOA) run by the owners. This process is required and governed by state laws and the HOA's governing documents, which outline the specific procedures for the transition.

For small communities, such as condominiums, townhouses, or housing developments, the developer must establish a business entity---the HOA--- to manage association finances, common areas, property maintenance, and maintain the protection of community rules.

While the community is being built and sold, the developer controls the HOA and manages its operations.  As homes are sold and residents move in, the control of the HOA needs to transition from the developer to the homeowners themselves.

This transition generally occurs when a certain percentage of the homes or units have been sold, or when a specific amount of time has passed since the establishment of the community, as outlined in the HOA's governing documents.

The transition process involves several steps, including:

Turnover Meeting: A meeting between the developer and homeowners where the transfer of control is discussed. During this meeting, the developer provides financial records, governing documents, and any information that the owners will need to operate their association.

Election of Homeowners' Board: Homeowners elect volunteers to serve on the HOA board, taking over from the developer.

Transfer of Documents and Finances: The developer hands over control of the HOA's financial accounts, reserve funds, governing documents, insurance policies, and many other resources that will be necessary to the newly elected HOA board.

Management Transition: The management of HOA assessment collection(fees), maintenance, budgeting, and decision-making shifts from the developer to the HOA board or a professional management company hired by the homeowners.

Establishment of New Rules and Policies: The homeowners might choose to add or amend existing rules and policies according to the needs and preferences of the community.

A cooperative and complete transition is essential to ensure that owners understand their responsibilities and know how to maintain the community's amenities and common areas effectively.  

If you want help to comply with the requirements of transition and turnover, MicroHOA has a clear and organized process.  We can handle everything from the first stages of planning to the final turnover to owners, to make sure your project’s turnover is done right.