In this incredible housing market, several new common interest communities have been created to provide for the construction of new homes. On or before declarant control is terminated in these communities, CCIOA requires that an election be conducted to ensure majority control of the board by the owners. Within 60 days following that election, the declarant must deliver all property of the association/owners held by or controlled by it. A summary of those items are:
- The original or a certified copy of the recorded declaration as amended, articles of incorporation, bylaws, minute books, other books and records and any rules and regulations;
- An account for association funds and financial statements from the date the association received funds and ending on the date the period of declarant control ended. The statements must also be audited by a CPA at the declarant’s expense;
- The association funds;
- All tangible personal property represented by the declarant to be the property of the association;
- Plans and specifications used in the construction of the improvements in the community;
- All insurance policies in effect;
- Certificates of occupancy for improvements in the community;
- Permits relating to the community;
- Written warranties of the contractor, subcontractors, suppliers and manufacturers that are still effective;
- A roster of unit owners and mortgagees and their addresses and telephone numbers;
- Employment contacts to which the association is a party;
- Copies of service contracts;
- In large planned communities, copies of recorded deeds and recorded and unrecorded lases evidencing ownership or leasehold rights of the association in all common elements.
It is critical for the new owner controlled board to timely possess the items above to effectively govern the association. The board should immediately make contact with the declarant to ensure that all requisite items are timely delivered to avoid any disruption in conducting association related business.