As a builder/developer, are homeowner associations an asset, a liability, or a necessary evil?
Homeowner associations are more than a product of state laws. Over 53% of owner occupied homes are now located in one of over 15,206 communities in North Carolina with a homeowner association. Associations have become a significant factor in the marketability of a community. Homebuyers today look for restrictive covenants to protect home values. They also shop for communities with amenities in the form of common area pools, clubhouses, fitness centers, marinas, etc. As a builder/developer there are three issues to consider:
The first is how well you educate your prospective buyers about the rights and responsibilities of purchasing a home in a community with a homeowner association.
The second is management of the association while it is under developer control. Recent changes in North Carolina General Statutes are specific regarding meetings, access to records, liens and foreclosures, fines, and other issues.
The third is the process, commonly referred to as ‘Developer Transition”, whereby control of the community is turned over to the residents. Developers and residents mistakenly see this as a day when the ‘keys to the clubhouse’ are turned over to a new Board of Directors elected by the residents. The fact is: ‘developer transition is a process that should begin the day the Articles of Incorporation are filed’. Having a plan that promotes communication and involvement with new residents is the key to avoiding disputes that can lead to expensive legal fees and settlements.
HOA-NC provides the following resources to builders and developers.
The HOA-NC Website
Refer homebuyers to HOA-NC.com for education and information about the rights and responsibilities of living in a community with a homeowner association..
The HOA-NC Directory
The only way to stay informed of issues affecting your association is to maintain your associations Profile Page in the HOA-NC Directory. Your listing also ensures that you receive our monthly Neighbors and Neighborhoods e-newsletter. Click here to search for your association. Then click on the Update button. This service is free!
HOA-NC Member Services
Homeowner associations come in all sizes and shapes. HOA-NC provides three levels of membership tailored to your association’s needs ranging from information to education to services. Details>>
Seminars
HOA-NC maintains a calendar of seminars conducted by the best legal, management, and service professionals in the industry. Check the dates for our next Developer Transition seminar. Details>>
Free Brochures
Coming Soon! Download our free brochure: “A New Homebuyers Guide to Understanding Homeowner Associations” for distribution in your model homes.
Coming Soon! Download our free brochure: “Best Practices for Developers & Builders with Homeowner Associations”.
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