A new-build home comes with many perks, including the chance to be the first person to live in your home. But what about what is happening outside of your home as the community grows and new homes are built? Who oversees that before homeowners are elected to a Board of Directors for the homeowners association (HOA)?
The Roles of Your Developer and Property Management Company
A community developer can hire a property management company (like Ghertner & Company) to help manage the day-to-day business of the HOA and work at the direction of the HOA Board. The developer serves as the Board until all homes in the community are built and a turnover meeting transitions control of the HOA to the homeowners. Ghertner & Company's goal is to create a long-term relationship with the association's homeowners and help create and operate a healthy community association long after the developer control period ends.
While homes are being built in the community, Ghertner & Company works with your developer to welcome homeowners into the HOA. We will work together to distribute information on HOA dues, payment information and instructions on obtaining items like mailbox or amenity keys. In addition, Ghertner & Company serves as the custodian of the association's books and records. Once a homeowner Board is elected, we assist in developing long-term plans and goals for the HOA. This ensures that an HOA's early due diligence translates into future continued success and financial stability for the owners.
When Do Homeowners Take Control of Their HOA?
The transition from developer to the homeowners occurs at a special meeting held for the purpose of electing homeowners to serve on the Board of Directors. Once the owners are in control, the real work begins! The only thing that ends at that meeting is the developer's control over the functioning of the association, not their responsibility to it.
The New Board’s Key Role in the Foundation of Your HOA
The newly elected Board members now have a huge responsibility. They must ensure that (1) the developer provides the association with all pertinent information, (2) the association reviews that information and questions the developer on any vague or ambiguous issues and (3) the Board develops a strategic plan to go forward from that point.
The purpose of the Board of Directors is to:
Exercise financial responsibility for the community: The Board determines a budget and establishes HOA fees for the community.
Enforce the governing documents: The Bylaws and Covenants of a community outline the rules all homeowners agree to abide by. The Board also can create rules and regulations to detail these expectations further. Remember, the rules are in place to protect property values, not to inhibit an owner's enjoyment of their home or community.
Create community among neighbors: The biggest benefit of HOA living is the community! As HOA leaders, the Board sets the tone for the community in your neighborhood. Many HOAs have social committees that host regular community events for neighbors of all ages. Volunteer to join your social committee or volunteer at a community event to get to know your neighbors.
Partner with vendors for the upkeep of common areas: The Board is responsible for hiring vendors to help with the maintenance of common areas in the community like a pool, clubhouse, entrance or other HOA needs. Ghertner & Company helps obtain vendor bids and ensure these vendors do the work they’re hired to do.
Manage risk for the HOA: Not only does the Board have to think about short-term decisions for the community, but they also must plan for long-term needs. Things like a reserve study to assess the longevity of common areas, having sufficient insurance for the HOA and making sustainable choices can help the HOA be protected from future risk.
Throughout the development process for a new-build community, Ghertner & Company provides community association management excellence for the developer, homeowners and homeowner-elected Board. We partner with you for the long-term success of your HOA, and it’s our goal to see your community thrive for many years to come.