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Transition from developer to HOA?

gravityrules

gravityrules

TUG Review Crew: Veteran
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MROP
Are there laws, federal or state, that require control of a development to be transferred from a developer to the owners? I asked this question under a Silverleaf thread as they seem to be an example of a developer who do not have HOAs at any of their resorts. Reading some of their financial statements leads me to believe they intentionally keep their resorts in a state of perpetual development. I don't know if avoiding HOAs is one of the reasons for this development strategy but it appears to be one of the results. Others have expressed similar thoughts about Westgate.

What is not clear to me is whether establishment of a HOA is legally mandatory or whether it is a decision that is left to the developers.
 
Not sure if it is all the state, but in some of the states I own, it is required by state to turn over the control to owners when there is certain % of sell out. Usually it is a high number like 90%. There are some ways to get around it, a simple example is club owns the resorts, and since it always developing, there will be very hard to get to this 90% requirement. Even when it turn to HOA, there still has a lot of way to control it. Like the proxy if not return will be automate assigned to HOA use.

Jya-Ning
 
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