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Developer Turnover Meeting Transition Checklist

Homeowner association managers are a critical part of the turnover process from developer to elected homeowner board. But the devil of them is in the details and there are plenty of them to get this process right. Developers, in their role as pre-turnover board president often hire homeowner association management companies to handle HOA business like collecting dues, paying bills, processing maintenance requests, enforcing rules and architectural restrictions. These tasks will continue after turnover, so getting the routine down as early as possible is in the best interest of the HOA.

But the management company is often also charged with guiding the turnover process. Pulling off a successful turnover takes advance planning. There is the meeting itself which needs to be noticed to the members according to the schedule in the governing documents.

The turnover meeting notice generally includes a proxy so that those that can’t attend can assign their right to vote to another. Having enough proxies may be the deciding factor whether a legal quorum of members is present at the meeting. If there is no legal quorum (as defined by the governing documents), turnover elections and other business cannot be transacted and all the planning is for naught.

The list of tasks HOA managers often assist with in the turnover process is as follows:

  • Developer Administrative Infrastructure
  • Assist developer in establishing critical processes, policies and resolutions like:
  •  Collection policy
  • Architectural review process
  • Establish committees
  • Insurance resolution
  • Move in/Move out policy
  • Parking and pet rules
  • Establish protocols for newsletters, website
  • Establish maintenance schedules for common property
  • Interview contractors for regular maintenance contracts

Turnover Meeting Details

  • Find and reserve meeting location
  • Prepare and mail meeting notice/proxies
  • Organize the nomination process and circulate candidate bios
  • Assist with meeting sign-in, verify quorum, etc.
  • Collect and organize documents required for turnover
  • Prepare a Board Manual for each director

After Turnover Meeting

  • Organize new board meeting schedule
  • Train new directors with manager’s expertise
  • Assist the new directors in selection of:CPA, Insurance agent, Attorney, Reserve Study provider, etc

So you can see, there is a lot to consider when pulling off a successful turnover process. A properly used homeowner association manager can be a real asset in making sure it’s done right.

 

Management companies should help ensure a smooth transition process for incoming board members.