Florida condominium associations and Florida homeowners associations are initially formed by the developer. However, Florida law requires control of both condominiums and homeowner associations to be relinquished by the developer to condominium owners and homeowners.
The turnover for condominiums is governed by section 718.301 Florida Statutes. Unit owners other than the developer are entitled to elect at least a majority of the board upon the first to occur of the following events: (a) three years after 50 percent of the units that will ultimately be operated by the association have been conveyed to purchasers; (b) three months after 90 percent of those units have been conveyed to purchasers; (c) when all such units have been completed, some have been conveyed to purchasers, and none of the others are being offered for sale by the developer in the ordinary course of business; (d) when some units have been conveyed to purchasers and none of the others are being constructed or offered for sale by the developer in the ordinary course of business; (e) when the developer files a petition seeking protection in bankruptcy; (f) when a receiver for the developer is appointed and is not discharged within 30 days; or (g) seven years after recordation of the declaration, subject to the alternative dates the statute provides for certain phase and multicondominium developments. Separately, when unit owners other than the developer own 15 percent or more of the units, those owners are entitled to elect at least one-third of the board.
Turnover requirements for homeowners’ associations are governed by section 720.307 Florida Statutes. Members other than the developer are entitled to elect at least a majority of the members of the board of directors of the homeowners’ association when the earlier of the following events occurs: (a) three months after 90 percent of the parcels in all phases of the community that will ultimately be operated by the homeowners’ association have been conveyed to members other than the developer; (b) such other percentage of the parcels has been conveyed to members, or such other date or event has occurred, as is set forth in the governing documents in order to comply with the requirements of any governmentally chartered entity with regard to the mortgage financing of parcels; or (c) upon the developer abandoning or deserting its responsibility to maintain and complete the amenities or infrastructure as disclosed in the governing documents. In addition, members other than the developer are entitled to elect at least one member of the board once 50 percent of the parcels in all phases have been conveyed to members other than the developer.
The developer obligations at turnover are comprehensive and specific. Ansbacher Law can guide developers through a successful transition. Ansbacher Law has also assisted associations and homeowners when a developer fails to comply with their legal turnover obligations.
Contact us today for additional information or to arrange a consultation with an Ansbacher Law attorney.