WHAT IS TURNOVER?

AN EXCITING TIME FOR OUR COMMUNITY

AS WE PREPARE TO SELF-GOVERN

WHAT IS TURNOVER?

Turnover is the process guided by our Governing Documents and Florida Statutes in which control of the Verandah Community Association (VCA) moves from the Developer/Declarant to the homeowners. At turnover the Association budget, vendor relationships, and community operations are turned over to a new Board of Directors elected by the homeowners. In addition to electing a homeowner-controlled Board of Directors, the turnover process provides the owners with an opportunity to ensure that the Developer/Declarant has met statutory obligations to the community, including provision of all documents outlined in Florida Statute 720.307, as well as any obligations contained in the Governing Documents.

WHEN WILL IT HAPPEN?

According to our Governing Documents, the VCA must be turned over to the homeowners, terminating the Declarant’s Class B membership, upon the earlier of: three months after 90% of the maximum units which may be created have been conveyed to Class “A” members other than builders, OR when, in its discretion, the Declarant so determines and declares in a written instrument recorded in the Public Records.

The Developer/Declarant has indicated they will exercise the second option at a date to be determined in 2021. As expressed in the October 2020 Annual Meeting, the Developer would like to see turnover take place in time to allow a new VCA homeowner Board of Directors to approve the 2022 budget at the October 2021 Annual Meeting.

When the Declarant/Developer files their intent to turnover and provides notice to the owners it will trigger what is normally a 60-day timeline to the election of a non-developer board.

WHAT HAPPENS AT THE ELECTION?

Turnover begins with the administrative action of holding an election. It happens during a Turnover Meeting which is normally a single day event. During the Turnover Meeting, voting takes place, ballots are counted, and the new Board of Directors is announced. The developer-controlled board steps down. With these actions, turnover has occurred.

WHAT COMES NEXT?

The election/turnover meeting is followed by the work associated with turnover, to be done by the new Board of Directors which will engage the management company and legal counsel as they deem necessary.

For example:

--Organization of Board

--Provision of statutorily required documents within 90-days

--Turnover audit(s)

--Deed verification

--Transfer of permits