BILL NUMBER: S9865A
SPONSOR: MATTERA
 
TITLE OF BILL:
An act to amend the real property law, in relation to transition of
control of certain homeowners' associations
 
PURPOSE:
This bill provides a mechanism for residents of homeowner associations
to take legal control of their communities from the original developer.
 
SUMMARY OF PROVISIONS:
Section 1: Amends the real property law by adding a new article 16.
Section 2: Sets the effective date.
 
JUSTIFICATION:
Many homeowner associations (HOA's) begin life under the sole management
of a real estate development company. In some states, however, there is
a developer-HOA transition in which the real estate developer passes
control of the association to the community's homeowners.This turnover
process marks a pivotal moment as the homeowners take full legal control
of their community from those who built it. After the handover is
completed, the HOA accepts full responsibility to manage the community.
This bill, which is modelled on best practices in other states, provides
a mechanism in statute for a developer to hand over the association to
the homeowners within three months after the point in which 90% of the
units under the association's control have been transferred to homeown-
ers. Once a developer-HOA transition occurs, the homeowners can move to
elect a majority of the members of the association's board.
 
PRIOR LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
None to the state.
 
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall have
become a law.