Developer controlled HOA in debt

My HOA may be turned over to the owners in 1-2 years. The build-out has been fairly swift but the developer failed to raise the dues for many years which has caused the community to be illiquid and the developer has carried the debt. The developer also fully controls all committees although owners members are involved to prepare for transition, still the control and all decisions ultimately are the developer's. Decisions made by committees have been overridden by the developer a few times. I am concerned about the debt, which has decreased some once there were enough involved residents complaining about the debt and the fees were finally raised last year and again this year.

I am concerned that the developer controls everything and profits when the fees are increased since they also manage the HOA, set the budget and take 10% of the fees. I am concerned that there is no separation of duties in the fiduciary area that the developer controls. We have insisted on a reserve study, it will be charged to HOA, however there aren't any reserve funds and normal repairs have already begun to be performed in his seven year old development. I am looking for advice regarding my separation of duties concerns and the failure to raise fees to adequately and frequently enough to cover costs when it was clear that the community didn't have enough funds to function in the black.

That is an incorrect statement that is very bad to post.

That is like saying, the previous Board controlled the Association, hence any loans are theirs and not the Assocaitions.

If the Board, regardless of who was on it, accepted debt on behalf of the Association, the Association has a legal requirement to pay back that debt.

As the developer controlled the corporation, he accepted the debt on behalf of the association thus the association under developer or owner control, owes the debt.

Chances are the developer put up a bond of some type (town/city) and in order to be released from the bond he may need the owners agree to the transition. Work this angle.

In some instances it can depend on your State Laws if you have HOA statutes. In CO the developer is responsible for maintaining property he can use for his development rights. For example if the developer reserved the right to store materials on common area property in the CCR's during construction, then the developer is responsible for paying to maintain that property.