The HOA turnover process consists of the transition of control from the property developer to the homeowners and their elected board of directors. Understanding the turnover process is important for making sure the association is financially stable, legally compliant, and ready to manage the community’s long-term needs. And with proper planning, Tampa association management with Wise Property Management protects homeowners, board members, and boosts overall community value.
Legal Requirements for HOA Turnover
Chapter 720 Florida Statutes governs HOA turnover. Before a turnover can occur, certain conditions must be met, such as the developer having sold a majority of the homes or after a set number of years passes from the creation of the association.
In addition, the developer is required to provide documentation and records to the new board, including financial statements, governing documents, contracts, warranties, and a list of association property. If you’re unsure how to navigate this process, Tampa HOA management companies like Wise Property Management can help guide your board and ensure that nothing is overlooked.
Steps in the HOA Turnover Process
There are several important steps in the HOA turnover process. The process begins with the developer reaching the legal threshold for turnover, which triggers the requirement to call a turnover meeting. At this meeting, homeowners elect the new board of directors to assume control of the association.
From there, the developer must transfer all association documents, records, and funds to the new board. Ongoing communication and coordination between the developer and the board are also key to ensuring a smooth transition.
Common Challenges During Turnover
Unfortunately, it is common for challenges to arise during the turnover process. For example, disputes can often occur over things like construction quality or incomplete projects. Missing or inaccurate financial records can also become a problem, making it difficult for the new board to understand the true financial health of the association.
Transition delays and lack of cooperation from the developer are also common issues many communities face. Tampa HOA management companies like Wise Property Management can help boards overcome these challenges by providing professional guidance, organizing documentation, and making sure that all deadlines are met.
Developer’s Rights After Turnover
Once turnover is officially complete, the developer is no longer in control of the association, but may still retain certain rights and authority. These can include ownership of unsold lots or units, the right to appoint directors until those lots are sold, and the ability to enforce contracts or warranties entered into before turnover.
However, once homeowner control begins, the developer’s decision-making power within the HOA becomes extremely limited. Major community decisions are now in the hands of the elected board, and the developer’s role is reduced to that of a homeowner or property owner in the community.
Contact Wise Property Management and Learn More About How We Can Help With Professional Tampa Association Management
The turnover process is an important milestone for any community. At Wise Property Management, we bring the experience and knowledge needed to guide your board through each step so your board can handle the details with confidence.
For more information about how we stand out among Tampa HOA management companies, please request a proposal today or call our office at (813) 968-5665.