Reaching a new landmark in community growth and stability, Washington Square Condominiums recently announced that as of May 1, the developer transitioned control of its Homeowner’s Association over to the project’s 217 homeowners.

“This milestone is a reassurance to both the homeowners and the marketplace that sales and growth of this wonderful property continue during the recession,” says Ken Bebee, Community Association Manager with CWD Group, a company that manages associations for over 100 properties throughout the state. “Essentially transition provides for a sense of increased ownership moving from Declarant [developer] to homeowner control.”

Most multi-phase residential projects don’t initialize such a transition until several years into the project, according to Realty Times reporter Richard Thompson in his article, “Tripless HOA Transition”.

But Washington Square, which was only completed in 2008, managed to reach the point of transition in under 2 years. With nearly 60 percent of its homes now closed and recorded, turning over the HOA further bolsters the project’s already substantiated success.

“With the turnover of the HOA to the residents,” says Mike Sampson, real estate agent with John L. Scott of Bellevue, “[Washington Square] is further along and on better financial footing than many others.”

For home buyers, entering into a homeowner-controlled HOA means both a financially secure development and a guaranteed voice in the future of their community.

“For a new buyer to know the association is managed by residents is a plus,” says Terry Murphy, Washington Square resident. “It means going in, they know they’ll have a greater voice in the day-to-day affairs of the condominium.”

Building maintenance, repairs, events and neighborhood rules and regulations will now be governed by homeowners, whose seats on the Board of Directors will outnumber those held by the developer.

“Residents won’t have to stress about the HOA’s ability to manage the community,” says Royce Koh, sales executive with Washington Square, “because they will be the ones running the HOA.”

To ensure transparency and preparedness throughout the transition, Washington Square is following the Washington Homeowner’s Association Act (RCW 64.38) requirements for HOA transition.

These include mandating a full audit of HOA reserve accounts to determine financial condition compared to future needs and a full review of condominium documents by the association’s attorney to ensure the transition legally upholds resident rights.

Though not required by law, Washington Square is also arranging full interior and exterior inspections by licensed engineers to determine any future maintenance and repair needs.

“The audits of the association [are being] ordered so the homeowners have confidence that all is as it should be,” says Bebee.

Rather than abandoning homeowners to run their own association unprepared, Washington Square has begun a series of training sessions for resident board members. Volunteer leaders serving on the HOA board will be trained on legal, technical, and procedural language and processes by CWD Group and by current developer board members.

However essential the training process will prove, it’s noteworthy that taking an active role in their community is not a new concept to Washington Square residents.

Long before the HOA transition, the project’s developer instigated three chartered homeowner-run committees to serve on the HOA: The Architectural Committee, Rules Violation Committee, and the Community Enrichment Committee. Building their role in the HOA’s operations from early on, the committees laid the groundwork for a successful hand-off.

“The transition can be seen as a point of maturity in the association,” says Murphy, who has been actively involved in the HOA’s committees since buying at Washington Square.

Despite the big leap the HOA transition signifies for owners, the project’s developer will still be actively engaged in the overall operations of Washington Square and will fill a seat on the HOA board.

“The only thing that ends at transition is the developer’s control of the Association,” says Mike Nielson, Chief Operating Officer at Washington Square, “-not our responsibility to it, and not our involvement and interest in it.”

Washington Square, adds Nielson, will continue to play an active and guiding role in the growth of their homeowner’s association.

Looking forward, Nielson expects the transition will positively impact the future of both homeowners and the project itself.

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