Question:
We have a community that the developer should have turned over the hoa to the owners 2 years ago and refuses to do so. He is also collecting HOA dues and not accounting for funds. What are our options and next steps?
– Heather
Answer:
Hi Heather,
In Georgia, if the developer has failed to turn over control of the HOA to the owners as required and is mishandling or failing to account for HOA funds, the homeowners have a few options.
First, they should review the governing documents (CC&Rs, bylaws, and any development agreement) to confirm the timeline for the turnover of control. Developers are generally required to transfer control of the HOA to the homeowners once a certain percentage of the development is complete, typically after a certain number of units or lots have been sold.
If the developer is not complying with this timeline, homeowners should then send a formal, written request to the developer, demanding the turnover of control and requesting a full accounting of the collected HOA dues. It’s also essential to engage other homeowners in the community, as collective action can help apply pressure on the developer to act. Homeowners may consider requesting a formal audit of the financial records to ensure transparency and assess whether the funds have been mismanaged.
Georgia Code Section 44-3-232.1 may also apply here.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
