HOA Transition: An End of Year Recap
Posted on December 1, 2019 7:00 AM by Mary Cheston
2020 will be a momentous year for New Town residents. In April, control of the governing Board will turn over from the Developer to the homeowners. We thought it was fitting to recap where things stand in preparation for this transition. In addition to the Board and RAB discussions, the key preparatory actions completed to date include:
- Reserve study
- Establishment of a Transition Committee
The financial reserve study was completed in September by the firm Miller Dodson. The study is designed to help the Association anticipate and prepare for major repair and replacement projects. As reported at the recent budget meeting, the report recommended increasing the funds set aside for reserves.
In June 2019, the current Board of Directors authorized a Transition Committee to ensure that an independent group of homeowners conduct a due diligence review of NTRA’s records and advise the Board on transition. The members of this committee include both current RAB members and other residents, with Chuck Stetler serving as Chair. The Transition Committee’s charter, formally approved in October 2019, is available on the NTRA website: Transition Committee Resolution
The Board expects the Committee to review existing NTRA declarations, policies and procedures, financial records, deeds, insurance coverage and vendor contracts, among others. The Committee will also “have a designated member present during any future final inspections related to the Common Area.” Meetings of the Transition Committee will be advertised so that residents may attend.
Once the turnover meeting is held in April, the more intensive work for homeowners begins. Within 90 days thereafter, elections for a new Board will be held. Legal work will be required to make modifications and draft new NTRA documents as needed. The RAB will no longer operate and decisions about existing Committees will switch to the new Board.
All New Town homeowners should be engaged in the transition process and prepared to make the Association aware of changes you would like to see. As the experts say, “What happens today sets the stage for tomorrow’s success.”