Lot owner not paying dues or property taxes

Our HOA community is very small (35 lots). The subdivision went into foreclosure years before the HOA was established. There are currently two developers in our subdivision, one lives nearby and plans to move into our community this year. The other lives in another state. My concern is with the latter. Before the HOA was established, we had a meeting with the home/lot owners which totaled about 9 people of which one was the out of state developer, for the purpose of forming a board. He purchased 11 lots at a "fire sale" around the pond. He stated the he would revitalize the pond with landscaping in exchange for not paying fees until the amount equaled what he spent on the pond. This was verbal. At the meeting we formed the HOA board, of which I am a member. The out of state developer made himself a member of the ARB along with two other people. He seems to be setting the rules with the president on what happens in the development as far as the exterior of homes, but not following whats in the Covenant and Restrictions when it applies to his homes. He has not paid his property taxes on the lots, nor HOA fees. Another member asked to see his receipts for all the work that has been done, but the president has not enforced it. Can you give me some advice?

Not paying property taxes will result in a foreclosure from the government. Which is NONE of the HOA's business. This is how HUD foreclosures are made... Just watch for one of those people who cash in on those to show up. Then your HOA may get a break on being able to charge dues on those new owner/owners.

No. HUD foreclosures are federally backed home loans where the owner has defaulted. Also foreclosures where the owner has defaulted on a direct federal loan.

Local governments foreclose for nonpayment of property taxes. This can often take a very long time in my area. There are any properties in my developent that are many years delinquent on the property taxes. This is not aHUD foreclosure.

Verbal contract? Likely not enforceable. What's a subsequent board supposed to do with no evidence of any agreement?

As for the property taxes, feel free to pay them yourself, put a lien on the property, and foreclose. You as an individual should be able to do that.

A real problem with the verbal contract is that:

1. People may have different recollections of what the terms were; and

2. Anyone can claim that the contract is no longer in force because the other side failed to abide by some requirement.

Nothing on paper to refute anyone's claims.

IMHO, no restrictions on what actions the board can take if it wants to (assuming that declarant is no longer in control). Still responsible for the well-being of the HOA.