All community associations should retain the services of a transition consultant as soon as control of the Board of Directors has been transferred to the unit owners.

The transfer date or “turnover” as it is often called is regulated by state law in most jurisdictions. The level of regulation may vary widely from one jurisdiction to another but in general the developer or original declarant will be required to turn over control of the association to a unit owner elected board of directors once a pre-determined percentage of the units in the community have been sold.

Due to the wide range of responsibilities the new board will be assuming and the limited amount of time available to resolve conflicts, disputes, warranty claims and construction defect issues; it is critical that the new board act in a timely manner to obtain the best advice and counsel available.

HOA Services Group is available to provide a range of services and referrals to community associations who are at or near the point where turnover is scheduled to occur. Our company employs professional community management consultants, budget experts and maintenance/reserve planning experts who can assist you in evaluating the financial and organizational foundation of your community.

We also maintain a select list of highly qualified consultants to whom we will refer our clients for a review of the legal, accounting and insurance issues affecting all newly formed associations.

Transition Inspections

Perhaps most important to new communities is the need for a comprehensive property condition assessment which should be performed by qualified building technology experts. HOA Services Group works has developed a network of highly qualified individuals and firms who provide these services and are specialists in the field of property condition assessments.

These professionals are trained to identify conditions that indicate the possibility and probability of construction defects; particularly defects that are likely to lead to water intrusion problems.

In the state of California, which is arguably home to the most well regulated and professionally managed population of common interest developments in the country; the “transition inspection” is a standard procedure that is rarely overlooked.

Given that the statute of limitations for bringing a legal claim against the developers of the property or manufacturers of major building components probably starts to run from the time the very first unit within the development was sold; it is critical for all associations to obtain a property condition assessment immediately after turnover.

HOA Services Group - Transition Consultants

If your association has recently turned over or if control of the Board of Directors has been in the hands of unit owners for less than two years, now is the time to retain the services of a qualified transition consultant.

If it has been longer than two years since a unit owner board was elected but your association did not obtain professional advice during the transition period, you would be well advised to engage a consultant. A transition advisor will help determine if the association’s organizational structure, governing documents and methodologies are best suited to the interests of all members of the community

HOA Services Group can provide you with a complete package of transition services and referrals to qualified professionals in fields that are beyond the scope of our expertise.

The HOA Services Group team of community management advisors includes:

1. CAI certified Professional Community Association Manager (PCAM) and community management educator with two decades of industry related experience
2. CAI certified Reserve Specialist with 30 years of construction, building maintenance and project management experience who has prepared over 100 reserve studies for communities ranging in size from four to over 300 unit owners
3. Community Management administrator who has worked as an assistant to a leading Professional Community Manager and has been involved with managing the turnover and transition period for numerous community associations in the State of Oregon

The network of community management service providers that we maintain includes:

• Attorneys who specialize in representation of community association clients and construction defect litigation; These legal experts have been chosen for their understanding of the unique legal environment associated with common interest developments
• Architects & engineers who specialize in the evaluation and assessment of real property; these firms are trained in the areas of construction defect identification, property condition assessment, maintenance planning and the determination of useful life estimates for common area components
• Insurance professionals who specialize in insurance programs for common interest developments; these specialists will evaluate the association’s insurance program and compare it with the requirements dictated by the governing documents and make recommendations for maximizing the value obtained from the money spent on insurance
• Qualified contractors and construction management firms to assist any association that anticipates undertaking a construction repair or re-building program

Comprehensive Transition Package

Once your community makes the decision to retain the services of a transition consultant, what should they expect in the way of services?

A comprehensive transition services package should include:

Condition Assessment / Reserve Study Review

1. A property condition assessment prepared by an architect or engineer who specializes in this type of work; the assessment will involve a physical inspection of the property and the preparation of a written report that summarizes the findings of the inspection process; should the inspector find conditions that indicate further investigation is warranted they will recommend a more involved investigation into the conditions that have raised cause for concern. This process is critically important to the community because it is the only way unit owners can be assured they have protected their legal rights with respect to warranty claims and construction defect remedies.
2. Review and revision of the reserve study and maintenance plan that were prepared by the developer to insure the accuracy, completeness and efficacy of the maintenance program and reserve funding schedule. It is imperative that this review be performed in a timely manner to insure that under-funding of the association’s reserve account does not occur, due to an overly optimistic funding plan prepared on behalf of a developer who’s interest is to see the monthly HOA assessments set as low as possible. With ever changing legislation governing reserve studies and maintenance obligations for community associations it is also important to make certain these documents comply with the latest changes in the law.

Management & Legal Review

1. A comprehensive review of the governance practices as set forth in the association’s organizational and governing documents; review of the management practices of hired community managers or in-house management personnel; review of the annual operating budget and budget procedures to maximize the effectiveness of the budget process.

A legal review by an attorney representing the association, not the developer or the original declarant. The review should include an evaluation of the governing documents with recommendations for document revisions that are in the best interest of the community. A review of all legal agreements to which the association is a party. In most states contracts entered into by the developer on behalf of the association may be terminated by the unit owners Board of Directors if action is taken within a specified period after the turnover. A legal determination of the association’s rights with regard to any Statute of Limitations that may apply to the enforcement of warranties or claims for resolution of construction defects against the developer.