Couple of questions. We are in a community that is currently still controlled by the Developer. We have been told the community has to be 80% complete before the developer will hand it over but we are trying to determine if that is a State requirement or developer determined. Secondly, what if the developer is considering another phase (3) to the community. Does that possible new phase reset the “80%” number that would have to be reached.
Also, HOA’s are required to post and have an annual meeting but does that same rule apply to the Developer when they are in control of the HOA?
According to Sec. 209.00591(c) of the Texas Property Code:
“The declaration may provide for a period of declarant control of the association during which a declarant, or persons designated by the declarant, may appoint and remove board members and the officers of the association, other than board members or officers elected by members of the property owners’ association. Regardless of the period of declarant control provided by the declaration, on or before the 120th day after the date 75 percent of the lots that may be created and made subject to the declaration are conveyed to owners other than a declarant or a builder in the business of constructing homes who purchased the lots from the declarant for the purpose of selling completed homes built on the lots, at least one-third of the board members must be elected by owners other than the declarant. If the declaration does not include the number of lots that may be created and made subject to the declaration, at least one-third of the board members must be elected by owners other than the declarant not later than the 10th anniversary of the date the declaration was recorded.”
In this case, the declarant is the developer. Annual meetings are also generally required even when the community is under declarant control.
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