Client (builder-owner)

Understanding the Role of a Client (Builder-Owner)

In the realm of homeowner associations (HOAs), the term ‘client’ often refers to the builder-owner. This individual or company undertakes the task of developing a residential community, which includes the construction of homes, the implementation of infrastructure, and the establishment of common areas and amenities. The builder-owner is the initial ‘client’ for many service providers, including architects, contractors, and landscapers, among others.

During the development phase, the builder-owner typically retains control of the HOA, making major decisions and establishing the association’s rules and regulations. This period lasts until a certain percentage of the units in the community have been sold to homeowners, at which point the control of the HOA is gradually transferred to the homeowners themselves.

It’s important to note that the builder-owner’s influence on an HOA can extend beyond the development phase. Many builder-owners install provisions in the HOA’s governing documents that allow them certain rights even after the transition of control. These rights can include architectural control, the ability to expand the community, and more.

Understanding the role of the builder-owner is crucial for homeowners and HOA board members. Despite the transition of control, the decisions made by the builder-owner during the development phase can have long-lasting impacts on the community and the functioning of the HOA.