Your new home is part of a community association that is registered with the State of Missouri. The Association is managed by a Board of trustees, Directors or Board of Managers.
If the association is still in the transition stage of new development, the builder board serves as the first board of decision makers in the community. They are often referred to as Declarant or Original Trustees.
The first two board member elections occur by mail and with the election of the second board member – there is a shift in developer/builder majority votes. It is extremely important to remember and note that the development is still held by the developer or builder and that until turnover the developer/builder maintains certain obligations to the community.
Following transition and when the last home in the community is sold and closed, the first full homeowner board will be elected. This corresponds with Turnover where the first elected homeowner board now assumes full and all responsibility for the community association.
The board members oversee income of the association, the fees that are collected or unpaid, the operating costs, any payments made or bills paid on behalf of the association, as well as all association business. They establish the budget, determine the assessment amount and participate actively in legal collection matters. The Board receives monthly financials, complete with back up and sound internal controls so payments are made appropriately.
The Board ensures that the proper insurance needs are in place and met in accordance with the governing documents and they have a fiduciary duty to uphold and enforce the Declarations or Indentures of the community association.
The Board serves as the decision making body of the community and are elected, appointed or installed in full accordance with the governing documents. Their powers and duties are outlined in the Declarations or Indentures and provide them authority to act on behalf of the association.
When elected, they have been elected by the homeowner members and have earned your trust and commitment to speak and act on your behalf – they vote and make decisions based on the entire association.
Homeowners only vote in elections and on certain matters of the associations. The Board normally has the power and decision making ability in determining if a management company will be employed or if there will be a change in management made.
At close out of the development, the developer/builder must satisfy any and all plans that were approved by the local municipal, County or Planning and Zoning commission. Once those have been reviewed and satisfied, escrows or assurances (where applicable) are released and the developer/builder’s responsibility to the community has been satisfied and the conveyance in turnover completed.
Copyright Innovative Property Management, LLC 2007