Legal Dilemma?

The builder in our development has not completed many projects, including resurfacing of roads, landscaping, and drainage problems and the township is holding the bonds until the work is completed to satisfaction. This has been going on for 4 years. The homeowners knew that when the builder completed the townships punch list, the common area would be turned over to the HOA. Due to all the unresolved issues, the HOA has been in a state of limbo. The builder has now claimed bankruptcy. Last summer, we had been notified by an attorney who represents the township, that the insurance company and the township engineer were working together to expedite the completion of the punch list, so that the common area could be signed over to the HOA. We were instructed to form an HOA and vote for a board. That was accomplished during a township meeting. I was elected VP. We were informed that we would be notified when all projects were complete and the title transfered. At that point the HOA would be responsible to maintain the common area and that the township would maintain it until such time.

I and other board members received a letter from the township attorney stating that there was a complaint about the un-mowed common area by one of the residents. The letter placed blame for the lack of maintenance on the board. I called and was informed that the township was not going to maintain the common ground, as they did not budget for it. I asked how could the HOA purchase liability insurance and hire a landscaper when the property was still in the builder's name. She stated she was working to have it turned over to us without any of the overdue projects completed. The President and I are not comfortable having the common area signed over to the HOA without repairs. It is our only leverage. Our fear is if we accept this, the work will never get completed. Has anyone had an experience similar to this? Any advice?