Homeowner association managers are a critical part of the turnover process from developer to elected homeowner board. But the devil 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 fees, 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. This is a Goldilocks notice ... not to soon and not too late. To nail down a date, a suitable location needs to be found that has the capacity, parking and proximity to attract a goodly number. Offering food and beverages will entice some.

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.

Here's a list of the tasks HOA managers often assist with in the turnover process:

Develop Administrative Infrastructure

1. Help the developer to establish critical processes, policies and resolutions like:

a. Collection Policy
b. Architectural Review Process
c. Establish Committees
d. Insurance Resolution
e. Move In/Move Out Policy
f. Parking & Pet Rules

2. Establish protocols for:

a. Phone
b. Newsletters
c. Correspondence
d. Website
e. Email

3. Establish maintenance schedules for common property

4. Interview contractors for regular maintenance contracts

Turnover Meeting Details

1. Find and reserve meeting location
2. Prepare and mail notices/proxies
3. Organize the nomination process and circulate candidate bios
4. Assist with meeting sign-in, quorum verification, meeting minutes, etc.

5. Collect and organize documents required for turnover (some state statutes have a specific list) 6. Prepare a Board Operations Manual for each director

After Turnover Meeting

1. Organize new board meeting schedule
2. Train new directors within manager's expertise
3. Assist the new directors in selection of:

a. CPA
b. Insurance Agent
c. Attorney
d. Engineer/Architect
e. Financial/Investment Advisor
f. Reserve Study Provider

So you 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 is done right. Using one will help the HOA shine at showtime!

Excepts provided by Cheryl Brendle of Community Management Inc. of Portland Oregon. For more on HOA developer strategies, see Regenesis.net.

Published: June 18, 2008

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Richard Thompson owns Regenesis, a management consulting company that specializes in condominium and homeowner associations. He is a nationally recognized expert on HOA management issues. Regenesis publishes The Regenesis Report, a monthly newsletter for HOA boards, developers and managers. To subscribe, go to Regenesis.net. He can be contacted by email at .