Issue link: https://hub.associaonline.com/i/1469291
QUESTION 2: WHO MAKES DECISIONS FOR THE DEVELOPER-CONTROLLED COMMUNITY? ANSWER: The decision maker for a developer-controlled community is the developer board of directors. A board of directors is an essential—and required—aspect of any HOA. Authorized to act on a community's behalf, a board consists of members that handle a variety of tasks, including creating and enforcing guidelines, overseeing finances, and maintaining shared spaces. When an HOA transitions from developer control to homeowner control, homeowners elect fellow HOA members to serve on the board. However, when an HOA is controlled by a developer, homes are still in the process of being sold and homeowners are not involved in selecting a developer board. A developer board is selected by the developer and typically consists of the developer and other individuals professionally connected to them, like employees of their company or specialists involved in the project, such as the builder. A developer board manages factors, like landscaping and building decisions, financial and administrative issues, collecting owner assessments, and enforcing deed restrictions, while the community is in the development phase and under developer control. When a percentage of homes are sold or when the developer prepares notice to the association that it's willing to transition, the board will then move to homeowner control. The community's governing documents will define when and how that happens. QUESTION 3: DOES THE COMMUNITY MANAGER REPORT TO THE BOARD OR DEVELOPER? ANSWER: The developer may act on behalf of the board of directors to hire a manager or management firm to handle much of the association's day-to-day operations. While a developer may hire a management company, it's the manager's job to carry out the decisions and policies of the board—not the developer. The manager reports to the entire board of directors and acts at its direction. They don't report to the developer or one individual director or committee member unless the board grants a particular individual the authority to handle specific matters. The management agreement between an association and a management company usually stipulates that the board should identify one person to liaison with the manager.