Turnover Does Not Have To Lead To Fumbles

I’m focusing on HOA turnovers in my training seminars this week and next.  Turnover is when a development comes under the control of an elected board instead of the original Declarant.  Turnover rules are a good thing, but there are few rules in place here in Idaho.  The turnover process is mostly governed by good faith and common sense.  Unfortunately, both of those things are sometimes in short supply.

So, here is a helpful checklist of documents or information to ask for from your Idaho developer at turnover:

  • Corporate Documents
    • Articles of Incorporation
    • Bylaws
    • Meeting Minutes
  • Association Information
    • Original Declaration of CC&Rs
    • Adopted Rules & Regulations
    • Current List of Owners & Mailing Addresses
    • Inventory of Personal Property
  • Construction Information
    • As-built plans
    • Contractors who worked on common areas
    • Warranties
    • Approvals/compliance with development agreements
    • Assignment of Water Rights
  • Financials
    • Bank Account Control or Balance
    • Budget
    • Tax Returns
    • Accounts Receivable/Payable
  • Legal Documents
    • Contracts
    • Insurance Policies
    • HUD certification (if applicable)
    • Ongoing enforcement/collection/other litigation
    • Transfer/ownership of all common area & easements

Some of these are merely intended to be helpful, but Idaho law requires non-profit corporations like HOAs to maintain certain corporate documents on file.  Turnover of those should not be negotiable.

-Jeremy O. Evans

PS, I compiled this list from experience, but I also checked the web for ideas from other jurisdictions.  A few sources that I found helpful were:

http://www.aboutmyhoa.com/fnddev.htm

http://www.floridacommunitylaw.com/lawyer-attorney-1725283.html

http://smallbusiness.chron.com/checklist-development-turnover-36569.html

http://www.hindmansanchez.com/resources/newsletter/five-things-you-need-know-about-transition

http://www.bttransition.com/master-turnover-checklist/

http://www.cktha.org/linked/management%20handbook%202011.pdf

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