Do homeowners or condominium owners have any participation on the board prior to the transition?
In both homeowner associations and condominium associations the homeowners have a right to representation on the board when the sales reach a certain point. In a condominium project, it’s 15%. At that point, the homeowners are entitled to elect one-third of the members of the board. In a homeowner’s association, the participation doesn’t come until their 50% of the units have been sold and they’re entitled to one person to be on the board. Those homeowner representatives primarily are there to watch what the builder is doing and be able to report to the other homeowners if they think something inappropriate is going on.