Homeowners Association dues for developer

I am a board member of our owners association with an ongoing problem regarding the developer's not paying dues to the association. The developer "declarant" has sold off all of his lots in our phase I of the entire development. The board wants him to pay dues on the remaining lots to be sold in the next phase II. However, the town has not yet approved the selling of those lots even though they have been totally improved by all of the governing authorities. It is my opinion that the declarant (developer) is not a member or "owner" in the homeowners association, and therefore does not pay any dues. He, the declarant/developer, is selling off his lots which, then, those buyers/owners automatically become HOA as members. I can't make the rest of the Board understand this fact (it is in the CCR's) as they want the developer/declarant to pay the dues for those lots in phase II (54 lots, which cannot and are not sold as yet) for this current year, and the past five years, in our treasury. Of course the developer does not and says he will not pay any dues, as he is the developer (declarant) not the owners of lots who are members of the association. Am I wrong? pPlease help with any advice. I am trying to fulfill my job as a member of the Board. The rest of the Board wants to sue the developer to pay the dues, By entering into a law suit, the association will be in a financial position and this will limit our funds to use for the actual expenses the dues is intended for. Thank you for all your help.

Connie

Ny last HOA had an issue along the same lines. We claimed that once a lot was platted, then the HOA dues on it should commence. Our attorney sent the builder a letter stating such. We got back a letter from the builder's attorney (a bigger tool swinging firm then our attorney) that said the dues did not commence until the home was purchased.

Two attorneys, two opinions. We choose not the persue the issue as it we did not see it as economically viable for us to do so.

Connie,

Whether or not the developer (declarant) owes dues depends on how your Declaration (CCRs) is worded and on the requirements (if any) of the laws in your state. In our community (and according to state law in CT), for example, dues are owed only on "declared" units. Units are "declared" by the developer only when they are sold. This is done by the developer amending the Declaration with the town to include the new unit as part of the association. This is one of the very few cases where the developer may unilaterally amend the Declaration without a vote of the association.

Thus, there are no dues owed by the developer on undeclared units, whether they are vacant lots or have completed homes on them. Of course, since they are not yet a part of the association, the association is not responsible for providing any services with respect to those units. For example, if the undeclared units have lawns and if the association maintains the lawns on the declared units, the developer must maintain the lawns on the undeclared lawns.