Construction phase

Construction Phase in a Homeowners Association Context

The construction phase is a crucial period in the life of a homeowners association. In this phase, the developer or builder initiates the physical construction of the community, which can include single-family homes, multi-family units, or mixed-use buildings. The construction phase begins with the initial groundbreaking and continues until the majority of the units in the development are sold and occupied.

During the construction phase, the developer is typically in control of the homeowners association. They set the initial HOA dues, establish the community’s rules and regulations, and make decisions regarding the community’s common areas and amenities. The developer also appoints the initial board of directors for the HOA, who are usually employees or affiliates of the developer.

It’s important to note that homeowners who buy into the community during the construction phase may not have the same rights and privileges as those who join after the community is completed. During the construction phase, homeowners may have limited use of amenities and common areas, and may not have a say in the HOA’s governance. However, as the construction phase nears completion and more units are sold, the control of the HOA gradually transitions from the developer to the homeowners. This is often referred to as the ‘turnover phase’.

Understanding the construction phase is important for potential homeowners as it can impact their rights and responsibilities within the community. It’s always recommended to consult with a real estate attorney or professional before buying into a community that is still in the construction phase.