association transitions from developer control. The following is • Send a second letter. Be business-like and firm, and cite the
a basic model for transferring control from the developer to the specific section of the rules that has been violated. Give the
association. resident a date by when the problem must be corrected, and
• Shortly after 25% of new owners in a building settle, a grant a reasonable amount of time. Explain what will happen
if the problem isn’t resolved by the specified date.
resident orientation is held and owners are encouraged
to participate in the committee structure. Five committees • Send official notification that the association is about to take
should be established – Activities, Budget and Finance, action. Schedule a hearing when the resident may address
Building and Grounds, Communications, and Rules. the association. Be willing to negotiate a date and time that
allows the resident to attend.
• When the settlements are nearing 35% to 45%, the
developer holds an election to place at least two owners on • Conduct a fair hearing and treat the resident with respect.
the board. This prepares owners to accept responsibility for Avoid a confrontational situation. Allow the resident to bring
the community’s management sooner than required by law. witnesses or counsel to the hearing, and let them know
• The developer establishes an ad hoc engineering committee when they can expect a decision. The panel hearing the case
to select an independent engineering firm to evaluate the may comprise members of the board or rules committee,
building for warranty purposes. Generally, a reserve study the managing agent, or some combination of these. In some
is performed at the same time as the engineering study to serious cases, association counsel may be invited to observe.
ensure that the developer has provided enough funds to • After the hearing the board will decide how to proceed. The
board should be willing to compromise on a solution that
leave the association in good standing.
• By the time it is legally required to place owners on the board achieves the desired result. For example, the board may
(50% or 75% of sales), many of the unit owners will have grant an extension of time to comply with the rule, suggest
already been trained and educated on matters of budget, an alternative solution, suspend privileges, impose monetary
penalties, or some combination of these.
building structure and so forth.
• Allow the resident to appeal the decision to a body made up
of suitably qualified people who were not part of the original
Resident involvement
hearing.
• Pursue alternative dispute resolution options if the
association and the resident cannot resolve their differences.
Some of the ways to ensure resident involvement include:
• • publishing a resident handbook with all relevant information
and contact details
Dispute resolution
• • using newsletters, flyers and signs to promote community
events, inform residents about community activities, and
keep them abreast of financial and other managerial Dispute resolution is less costly and more productive than
decisions litigation. It is comprised of three phases: negotiation, mediation
• • one-on-one meetings with residents and arbitration. In negotiation, the parties identify the issues,
• • sending thank you notes, not just requests and demands educate one another