Builder-Specific Turnover Practices
D.R. Horton
The nation’s largest homebuilder typically maintains HOA control until a community is nearly complete. In many D.R. Horton developments, turnover occurs only when most homes are sold — often around 90%–100% build-out. In some cases, control is not relinquished until the final lot is sold, depending on local laws and governing documents.
Lennar Homes
Lennar also usually turns over the HOA near full build-out, typically after 90% or more of homes have been sold. In some instances, Lennar has added phases to a development to delay turnover, a practice that has raised concerns among homeowners. Unless required by state law, Lennar generally retains control until nearly all lots are sold.
This extended control enables Lennar to:
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- Appoint and maintain exclusive control over HOA boards
- Influence community rules, vendor contracts, and financial decisions without resident input
- Extend construction schedules and developer-friendly provisions with little transparency
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Pulte Homes
Pulte transitions to homeowner control at approximately 75%–90% completion, following local and state requirements. In states like Illinois and New Jersey, which require turnover around the 75% threshold, Pulte aligns with those statutes. In areas without mandates, control may extend further into the development process but typically transitions before full build-out.
Taylor Morrison
Taylor Morrison typically transitions HOA control between 75% and 90% of build-out. Where state law sets clear requirements, the builder complies. In other areas, Taylor Morrison usually retains a majority of board seats until the final phase of home sales. Their approach mirrors national norms.
Toll Brothers
As a luxury homebuilder, Toll Brothers often waits until approximately 75%–90% of homes are sold before turning over control. In states like New Jersey, where law requires transition at 75%, Toll Brothers adheres accordingly. In other markets, control is usually maintained until the final stages of development to oversee architectural consistency and amenity completion.
Medium Regional Builders
Builders such as NVR (Ryan Homes), Meritage Homes, and Tri Pointe follow similar practices. Most turn over HOA control between 75% and 90% sold. Many governing documents allow developers to retain control until the last home closes, although this has become less common in recent years due to stronger homeowner protections and updated legislation.
National Average and Trends Since 2000
Across the United States, the typical HOA turnover occurs at around 75% to 80% of build-out, with most builders relinquishing control once three-quarters of homes are sold. This percentage reflects both industry standards and legal requirements in many states.
Changes Over Time
In the early 2000s, developers often retained control until 90% or even 100% of homes were sold. However, since the 2010s, a shift toward earlier turnover has occurred due to legislative reforms. States like Illinois, New Jersey, Texas, and Idaho have enacted laws requiring partial or full turnover between 75% and 95% sold, sometimes adding time limits to enforce compliance.
