The Developer-to-Owner Transition: What to Expect and Do

Every new condominium in DC starts the same way: the developer — called the "declarant" in the DC Condominium Act — controls the association while the building sells out. At some point, that control has to pass to the people who actually live there. That handoff is called the transition, and how well it goes has a lot to do with how smoothly the building runs for years afterward.

Here's what the process looks like under DC law, and what a new board should be doing at each stage.

This article is for general information only and isn't legal advice. Transition is one of the moments where getting your association's attorney involved early genuinely pays for itself.

Why There's a "Developer Control" Period at All

When a condominium is first created, there usually aren't enough owners yet to run an association — so the DC Condominium Act (DC Code § 42-1903.02) authorizes the declarant to control the unit owners' association, appoint the board, and act on its behalf until enough units have sold. This isn't a loophole; it's a practical necessity for a building that's still filling up.

But that control isn't indefinite, and it isn't total.

The Milestones Along the Way

The Act builds in checkpoints so owners gain a voice well before the developer fully steps back:

- Around 25% of units conveyed — a special meeting is held so owners other than the declarant can begin electing a portion of the board.

- Around 50% of units conveyed — owner representation on the board increases further.

- 75% of units conveyed, or a statutory time limit is reached (generally two to three years from the first unit settlement, depending on the building type) — developer control ends and a transition meeting is held where owners elect the full board.

Because of these staggered thresholds, it's common to see a board with a mix of developer-appointed and owner-elected members for a period before the full handoff happens. That's normal, not a sign of anything going wrong.

What Happens at Transition

Once developer control ends, the unit owners elect the entire board, and the association takes full responsibility for its own governance, budget, and operations. This is the moment a building stops being "the developer's building" in any practical sense and becomes the residents' association, in full.

What a New Board Should Do First

Transition is a lot of responsibility landing at once, usually on people who've never run an association before. A few priorities make the first months much less overwhelming:

Get the documents. Request the association's full financial records, contracts, insurance policies, and meeting minutes from the transition period. You're entitled to them, and you'll need them to understand what you've inherited.

Review the reserve study and building condition. Many associations bring in an independent engineer at transition to assess the building's condition and compare it against what was represented during construction and sales. If there are construction defects or deferred maintenance, this is the window to identify them while warranty and legal options may still be available.

Revisit existing vendor contracts. Contracts signed by the declarant on behalf of the association during the control period can often be terminated without penalty on 90 days' written notice, under DC Code § 42-1903.01(b). Transition is the natural moment to ask whether your current vendors — janitorial, concierge, landscaping, security — are actually the right fit going forward, or simply what the developer happened to choose.

Set your budget on your own terms. Developer-era budgets are sometimes set conservatively to keep initial assessments attractive to buyers. A new board should build its own budget and reserve plan based on the building's real condition and costs, not the number that was easiest to market.

Establish your communication and governance rhythm. New boards benefit from settling early on how meetings are run, how residents are notified, and who the single point of contact is for day-to-day issues. Decisions made in the first few months tend to set the tone for years.

## Where a Property Partner Helps Most

Transition is exactly the moment when boards most need an operational partner who isn't guessing. At Urbaniqa, we've supported associations through this stage — helping new boards get organized, reviewing vendor relationships inherited from the developer, and building the operational structure (SOPs, vendor lists, communication protocols) that a board shouldn't have to invent from scratch while also learning to run a building.

If your community is approaching transition, or has just been through it and is still finding its footing, we'd welcome a conversation.

Urbaniqa Property Solutions

1250 Connecticut Avenue NW, Suite 700, Washington, DC 20036

contact@urbaniqasolutions.com · www.urbaniqasolutions.com

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