How to Transition from Developer Control in Georgia

Question:

We have a neighborhood that is 3 years old and in the punchlist phase with a developer and property manager that is terrible. Non-responsive and they are slow in fixing items in the common areas.

How do we get rid of them and move the transition so we can take control of our neighborhood? They have no sense of urgency and we have a really expensive HOA assessment.

– Edward

 

Answer:

Hi Edward,

Kindly check the governing documents to see when the period of declarant/developer control ends. You may wait for this to expire or for the community to fulfill its requirements then proceed with the transition. Usually, transition happens when a certain percentage of home sales have been met.

However, the Georgia Property Owners Association Act Section 44-3-232.1(a) also states that the right to control may pass to the homeowners if the developer fails to do any of the following:

  1. Incorporate or maintain an annual registration;
  2. Cause the board of directors to be duly appointed and the officers to be elected;
  3. Maintain and make available to owners, upon written request, a list of the names and business or home addresses of the association’s current directors and officers;
  4. Call meetings of the members of the association in accordance with the provisions of the association’s bylaws at least annually;
  5. Prepare an annual operating budget, establish the annual assessment, and distribute such budget and notice of assessment to the owners in accordance with the condominium instruments no later than 30 days after the beginning of the association’s fiscal year; or
  6. Pay property taxes on common property of the association for two or more years.

Section 44-3-232.1(b) also states that, if the declarant fails to do any of these, the homeowners may send the declarant written notice of the failure to comply with such requirements and provide the declarant a 30-day opportunity to cure the failure, sent by certified mail or statutory overnight delivery to the declarant’s principal office. If the developer fails to cure any or all of these, the homeowners may institute an action in the superior court of the county in which any portion of the property owner’s association is located to obtain a declaratory judgment to grant the owners control of the association by ordering an election and setting the terms thereof, or issuing any other orders appropriate to transfer control of the association. For further guidance, kindly consult a lawyer.

 

Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.

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