QUESTION 1: WHAT IS A DEVELOPER-CONTROLLED
COMMUNITY?
ANSWER: Generally, a developer is someone who leads a real estate company. A
developer—or development company—conceives a community association, secures
the land, plans the infrastructure, and works to build the foundation of a homeowners'
association (HOA). A process that can take months, even years, to complete, there are
phases of construction, legal paperwork, and more to consider. In short, there are three
steps that explain what a developer-controlled community is and how it comes to be.
Step 1: A developer initiates a community expansion or creation project.
Step 2: The pre-development phase begins and permits and approvals are established
to start building. The lengthiest stage in the development process, the developer also
drafts the governing documents in the later part of this phase.
Step 3: The developer forms a nonprofit corporation to own the land and amenities, and
in the case of condos, certain parts of the building exterior. At first, the developer owns
all the lots or units in the association; therefore, it's a developer-controlled association.
