The transition of HOA control from the developer (declarant) to elected homeowner directors.
Turnover is the critical event in a new HOA community's life cycle when the developer's control of the board ends and homeowner-elected directors take over. Triggers for turnover are defined in the CC&Rs and state law — typically when a set percentage of lots (75% in most states) have been sold, or after a fixed number of years. At turnover, the developer must hand over all association records (financial accounts, governing documents, contracts, insurance policies, as-built plans, warranty information) and convene an organizational meeting for homeowners to elect a board. A post-turnover audit often reveals deferred maintenance, underfunded reserves, or sweetheart vendor contracts that the new board must address.
Turnover is when the community's actual financial and physical condition becomes fully visible. Homeowners in transitioning communities should insist on an independent reserve study and financial audit immediately after gaining control.
Declarant
The original developer or builder who created the HOA and recorded the CC&Rs.
Developer Control
The period during which the developer (declarant) controls the HOA board before homeowner turnover.
Reserve Study
A professional analysis of an HOA's physical assets and reserves, used to set annual reserve contributions.
Board of Directors
The elected governing body responsible for managing the HOA on behalf of all homeowners.
LotWize handles turnover tracking automatically — along with violations, ARC requests, meeting minutes, and homeowner communications, all in one platform built for self-managed HOAs.
Start 14-Day Free TrialThis page provides general information only — not legal or financial advice. HOA laws vary by state and community. Always consult your governing documents and an HOA attorney for guidance specific to your situation.