ID H0657

Developer control of homeowner's associations must terminate once 75% of development is built and occupied (with a minimum 5-member board comprising at least 40% resident homeowners), and full control must transfer to property owners within 180 days after 95% occupancy.

Homeowner's associations may cancel or terminate any contracts in effect at the time of management transfer (including with management companies, landscapers, and financial institutions) within 365 days without penalty.

Association members must receive requested financial and other information within 15 business days, and each member in good standing receives one vote per lot owned.

Developers who fail to transfer control or violate these provisions face penalties of $500 per day for each day of delay, and members who prevail in legal actions are entitled to reasonable attorney's fees and costs.

Board membership is restricted to one member per lot, all board members must reside within the association boundaries, and no person may hold proxies exceeding 50% of the association's total voting power.