The developer still controls the HOA. When do homeowners take over?
Homeowners take majority control when the declaration or a state transition statute says they do — usually after a percentage of lots are sold, a calendar date, or the developer walks away. Until that trigger, the builder commonly appoints most or all directors. That feels unfair in a half-sold neighborhood. It is often exactly what the recorded documents allow.
Typical process: the developer records CC&Rs, creates the association, and names the first board. Owners pay dues while the developer still votes the unsold lots. Amenities may be unfinished. At turnover, owners elect a majority of the board, and the developer must hand over records, money, contracts, and often a financial audit. After that, the developer may still keep a seat or vote unsold lots, but should not recapture majority control.
What controls: the declaration’s “declarant control” or “transition” article (percentage sold, years after first closing, FHA/VA lender requirements), bylaws, and state statute. Lender guidelines sometimes force an earlier owner board than the developer wanted. There is no single U.S. percentage.
State examples, labeled as such — not national law:
- Florida HOAs: Fla. Stat. 720.307 generally lets members other than the developer elect a majority of the board three months after 90% of parcels in all phases have been conveyed to non-developers, or sooner if the documents or other listed events say so. Members often get at least one seat at 50% sold. The developer must deliver a list of records and, at its expense, certain financials within a statutory window. That 90% figure is Florida’s HOA trigger, not a national one. Florida condos use Chapter 718, which is different.
- Other states: look for “transition,” “declarant control period,” or a percent-sold clause. Some use 75%, some use a date, some use both.
Next steps:
- Read the declarant-control and turnover article. Note the percentage, the date, and any “all phases” language (phasing can delay the clock).
- Request sales numbers, the current board roster (who is a developer appointee), budgets, and contracts. Send a written records request.
- Keep paying regular dues. Nonpayment does not speed turnover.
- If the trigger has already hit, ask in writing for an owner election and the turnover-document list.
- Go to meetings anyway. Owner seats, even a minority, still get you minutes and a voice.
If the percentage has been met and the developer will not schedule an election or hand over bank accounts, talk to a lawyer licensed in your state. Bring the declaration and whatever proof of sales you have.
This is general information from an AI helper, not legal advice. Confirm it against your documents and your state’s law. If a deadline or hearing is coming up, talk to a licensed lawyer.