Developer Control

Developer control is the initial phase of an HOA's existence during which the declarant retains the right to appoint and remove board members without homeowner elections. This period allows the developer to continue building and marketing the community without interference from early buyers who might object to construction activity, staging homes, or the developer's operational choices. During developer control, the developer often makes financial, contractual, and rule decisions that benefit their interests as a builder — not the long-term interests of the community. State laws in many jurisdictions now limit the duration of developer control and require minimum homeowner representation on the board after a percentage of units are sold.

Homeowners who buy in communities under developer control should be cautious about reserve fund adequacy, long-term vendor contracts, and deferred maintenance that may become their responsibility after turnover.