developer assessments

I live in a 72 unit townhome planned community in AZ. The original builder/developer owns 9 rentals and pays regular assessments on these. He also has 6 lots under various stage of construction. He pays no assessments on theses and the board has discovered he never has paid assessments until he gets Certificate of Occupancy for city. His answer is that it is always done this way. Our CC&R's state everyone pays with no specific mention of owner, builder, developer. Our State Statutes also say assessments are mandatory, but again with no specific mention of owner, builder, or developer. It is the lack of specificity he is hanging on to. He has always voted in our elections using all his lots, assessed or not. We have no pool, rec center, etc. Our assessments go for current maintenance and repair as well as reserves for future.

Judith,

Read your CCRs and your HOA state laws (if any) very carefully. Be especially on the lookout for sections titled "Declarant Rights" or "Developer Rights" or something similar. What's in these sections may explain what you are observing. Some declarant rights remain as long as the developer has not fully completed the development, even after control of the association has been turned over to the homeowners.

CC&R's say everyone pays. Our CCR&R's section 7.1 state "The Declarant, for each Lot owned by it, and each owner, by becoming the Owner of a Lot,is deemed to covenant and agree, to pay Assessments, fees, charges, fines and penalties to the Association in accordance with this Declaration and applicable Arizona law." No section on Declarant or developer rights. Arizona State Statute 33-1802 defines Planned Community as "a real estate development which includes real estate owned and operated by a nonprofit corporation of owners that is created for the purpose of separately owned lots, parcels or units are mandatory members and are required to pay assessments to the association for these purposes. We are talking big bucks. Developer has paid no assessments on any property until Certificate of Occupancy has been issued for about 6 years. Developer says this is how it is always done, but has no documentation. Is an attorney our only chance? We have been under HOA governance for about 3-4 years and never able to get this done.