![]() ![]() How does the association have the authority to add the amendment? How does the conversion to a POA from an HOA occur?Īn attorney must prepare an amendment to the governing documents that says the association agrees to be bound by the Georgia Property Owners Association Act. The amendment also conforms the provisions of the governing documents to the provisions of the POAA. At that moment, commonly referred to as “Turnover”, a new board consisting of homeowner is elected. Control does not convert to the homeowners until a specific time, usually at a predetermined moment when the project is at or close to completion. It is their decision whether to create an HOA or a POA. The developer usually retains control of the association as the board of directors during the construction process. In most cases, the developer works with their attorney and records the initial covenants and bylaws. The association governing documents determine the status of the association. What determines whether an association is a POA or an HOA? Standardizes notice requirements, election processes, proxy requirements and other processes. ![]() Automatic liens on each property no need to file ‘paper’ liens to secure the debt.Higher lien priority and ability to foreclose on lien (if necessary), meaning the association gets paid prior to other credits or “moved up” in position as a creditor.Perpetual covenants that do not require renewal the absence of this clause may lead to accidental dissolution.Ability to charge late fees and higher interest on past due amounts.In essence, it “upgrades” the community and offers a new bundle of rights including the following benefits: In general, the POA was designed to mirror the Georgia Condominium Act (GCA) in terms of offering a “set” of advantages to HOA communities. As your managing agent, we believe amending documents to become part of the Property Owners Act is a good decision for most associations however, the board should always get the advice of their legal counsel before making any decision about the community’s governing documents. As such, we would like to be sure every association is familiar with the difference between being a Homeowners Association, (HOA) versus a Property Owners Association, (POA). As your management company, a large part of our job is to be a resource to our associations and to make sure that they are set up in the most advantageous manner possible, reducing risk and minimizing board work. ![]()
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