Could you please explain the transition process to me? I've heard my neighbors talk about a transition but I'm not sure I understand what they mean.

When referring to the HOA, the transition signifies the moment when the homeowners assume control of HOA by electing a new Board of Directors and Officers represented by homeowners. Typically during the development phase of a community, the Association is in the hands of the declarant a.k.a. the developer. The developer has the authority to control the affairs of the HOA according to the powers granted to him in the Deed Restrictions (DRs). The developer and his partners may also be members of the initial Board of Directors.

The DRs are usually written in favor of the developer and he (not the homeowners) decides when he will transition the property (and the Board of Directors) to the homeowners. In some cases, the developer may choose to retain control of the HOA for several years if the DRs allow him to do so. The size of your HOA (# of homes) and the frequency of sales of the units are two important factors which will most likely determine when the developer may want to complete the transition.

In my opinion, homeowners often want to assume control of their HOA (via the transition) too soon. Homeowners should talk to their management company and the developer to learn more about the transition timeline for their community. I think it is best to determine the full scope of responsibilities the developer is obliged to complete before the homeowners allow him to relinquishes his responsibility to the HOA.

Have you been involved in the transition process before? What was your experience?