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DEVELOPER ISSUES
Transition. For new communities, transitioning from developer to homeowner control is especially important both short- and long-term for an association. At the outset, the developer controls the board and appoints all committees. As homes are sold, the developer gradually gives up control.
Records Transfer. As a developer sells the last of its properties and turns control of the association to an owner-controlled board, the new board needs the following documents from the developer:
- Governing Documents: CC&Rs, articles of incorporation, bylaws, condominium plan, parcel maps, deeds to easements and common areas; rules & regulations, collection policies, and election rules.
- Architectural Records: architectural guidelines, records of unit buildouts, architectural committee meeting minutes.
- Construction Documents: bonds; blueprints of common area buildings.
- Insurance Policies: D&O insurance, general liability policy, property insurance, fidelity bond, etc.
- Corporate Documents: board and annual meeting minutes, membership list, statements of information filed with the Secretary of State.
- Financial Documents: budget, reserve study, audited or reviewed year-end financial statement; balance sheet; bank statements, income and expense statement, check register, general ledger, delinquency reports.
- Vendor Contracts: management company, elevators, security, landscaping, etc.
- Warranties & Maintenance Manuals.
Services. We assist boards through the developer transition by (i) assisting with the election of new directors, (ii) ensuring the transfer of documents, (iii) reviewing requests for assessment bond releases and potential claims against the bonds, (iv) training new boards to make it easier for them to fulfill their duties as directors, and (v) reviewing and amending governing documents to tailor them to the new community.
CONTACT US for a proposal. |
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