CCIOA Corner - Declarant Transition

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Resource Topic: 
Governance
Operations
By: Elina B. Gilbert

If your community is still under declarant control, you should be aware that CCIOA prescribes a time frame within which the declarant must turn over control of the board to the community owners.

Pursuant to Section 303(5)(a) of CCIOA, a declarant is required to turn over control of the board to owners upon the occurrence of any one of the below events:

  1. 60 days after conveyance of 75% of all units that may be created (as such number is defined in the declaration) to owners other than the declarant; or
  2. Two years after the last conveyance of a unit in the ordinary course of business; or
  3. Two years after the right to add new units was last exercised.

 

According to CCIOA, any of the above three scenarios (whichever happens first) must trigger developer transition regardless of what an association’s governing documents state.   Thus, if you live in, or manage, a developer controlled community, you should be aware of the above triggers.

If you have questions about developer transition requirements, please contact a HindmanSanchez attorney at 303.432.9999.