HOA Turnover — When the Developer Finally Gives Up Control
Section 209.00591 of the Texas Property Code establishes the conditions under which a developer must transfer HOA control to the homeowner-elected board. The turnover must include a full financial accounting and transfer of all association records and assets.
Underfunded HOA Reserves at Developer Turnover
Developers who control HOAs owe fiduciary duties to the association and its members. An underfunded reserve at turnover — the result of inadequate assessments or misuse of funds during the control period — can support both breach of fiduciary duty and fraud claims against the developer.