Dues under Developer

First off, are you condos or single family homes or both?

Second, you should familiarize yourself with your governing documents, often referred to as "covenants and restrictions" or CC&Rs. This spells out in detail owners rights and responsibilities in your HOA.

In answer to your question, homeowners owners have owed assessments from the time they closed on their homes, so yes, those who didn't pay do indeed owe the association. In fact they may (and very likely are) subject to late fees. There should be a section in your CC&Rs that talks about assessments. You may also have owed a capital contribution at closing, and these contributions go directly into the reserves. It's encouraging that your board is thinking about reserves - many new and inexperienced boards can overlook them.

However... it seems that there is a level of confusion with the books, and the board needs an accurate accounting of who paid and how much, and who did not, and what steps if any were taken to address the non-payers. Sorting out your financials is your top priority, and it's an area where some developers play fast and loose. It sounds like your community was started just before the Great Recession and Housing Market Bust. Many builders were fighting to survive during that period, so that would be an added temptation for someone whose accounting methods were lacking. Not saying that your developer is a crook, just that it's something that should be ruled out since it sounds like he was less than responsive to questions during that time.

There are law firms in Ohio that limit their clients to community associations only, and one of their areas of practice is developer transition. If the board feels like it's in over its head, or if they suspect that money has disappeared, they may want to consider bringing in professional help.

Mareca,

You sound way over your head. The Board may be over its head, too.

Are you on the Board?

Did you answer Cathy's question wrt being single family homes or condos or mix?

I would suggest that any dues were owed must be paid (should be paid since those living there received something) - and audit trail should be easy to construct - regardless of who was in control. One of several reasons for your Board to obtain the services of an attorney.

This could also simply be a case where some owners don't want to pay and are saying no. If so, then it is, again, a matter of ensuring you understand who owned and when. Then accounting for what is owed by those property owners. Then billing them accurately. Then forcing payment by various means, including liening their properties.

Absolute accuracy is required in accounting records - absolute.

Spend the money to have attorney do some initial discovery, and lay out a plan to collect - while making sure the Board is acting per CCR and state law.

It is single family homes. I am not on the board. The very first meeting, of the newly homeowner owned HOA people self-nominated and some were nominated, then they gave a 30 spiel of why they wanted on the board, then a open forum vote. Then an immediately held a vote for the budget. Then said but we really don't know how much to have for a reserve. I don't believe any of these people have ever sat on a board.

Operating cost they are estimating $9000 per year, this is including a lawyer retainer. Not sure who the lawyer is, the board said only one person was talking to the lawyer. The lawyer recommended a reserve, the self appointed board before the HOA was turned over to the homeowners and a vote determined they needed to collect dues starting in 2015. The development began in 2007.

The Regulations only state the board can assess for the current year. The developer was the sole vote/voice/board until 31 Dec 2020. The developer never enforced collection. So it the board decided they need to collect, technically shouldn't all the money go to the developer?