What's involved in building new condos?

Question

Aside from drafting all the bylaws of the condo association and the construction itself...

What is involved in the continuing operation of the HOA? Ideally, I would want to have it built, sell all the units and then have nothing to do with it after all the units are sold.

Greg Dickerson · Answer

@Jay Hinrichs I'm with you. Outsource!

Jay Hinrichs · Answer

I love turnover meetings  NOT  I have a great gal here in Oregon were i do HOA's and she is a pro at it .. doing one right now ( not a condo but a 89 lot project) I have her write the CCR's and do all of that work for me.. then she handles the HOA until turn over.. its a great value and something that i really like to hire someone who is great at it to do.

I think for the OP if they are just getting started finding vertical financing could be an issue..  UNLESS they have very big war chest ( liquidity) ...  for me its been a Looong game and each project has its challenges.. WE were at a pre submission meeting yesterday.

so you have the city engineer then public works  the private utl providers land use.. etc etc.. it takes a village to move these things along :)

Jason Hsiao · Answer

Depending on the state @Patrick Philip, you might also need a condo map and have that recorded. You might also need error & omission insurance for the HOA. You should have a budget and factor in some reserves.

Greg Dickerson · Answer

Patrick - Typically you hire a property management company to handle things. The homeowners have to collectively make decisions through meetings, voting etc. its  a pretty common thing. You should talk to your attorney as they will be the ones to draft the documents that the community needs to adhere to.

Patrick Philip · Answer

I've been reading that the management of the HOA usually takes place when 51% of units are sold.

How am I supposed to trust a bunch of strangers to make competent managers, treasurers, etc.?

Greg Dickerson · Answer

Hi Patrick,

You can hire a management company to handle the HOA for you until you sell all the units. Once you sell the last unit or some other specified timeframe the HOA responsibility as decelrant is over and everything is turned over to the community and your out. Every state is different so check with a real estate attorney in your area and they can tell you spefeics.