Developer Transition in GA

The Developer we have here is the second one in two years. He is also a builder in our community. He and his wife have informed us that they are "opting out" in November, and that they will become "non-declarant" and the community will be going back to the bank (whom they are personal friends with the President). They want to turn over the "HOA" to the homeowners, but my question is how can they do that when there are only 13 of us? Not to mention, we feel there is some deceit on their part.. When they "took over" we never got any new paperwork from them or anything, the previous Developer did not go bankrupt they just bailed out on this community. Apparently, the current developer said that they "helped bail them out" of a bad situation. We know of several liens against them on their homes they are building (of which none are finished) as well as on our clubhouse...They say there is no money to pay the bills, and they are not putting anymore money into the community.

We are not sure we should even entertain taking this thing over and rather just let the bank have it. The Developer said his wife would stay on, but they wanted us to form an LLC. The Developer also said "we don't want it to go back to the bank, as they will hire a management company and assess everyone", for what I am not sure. Can they do that?

There is no BOD, there has been no evidence of a real budget, only a piece of paper typed up as to what they have spent and what they say the bills are. They were offended that we even asked to see a budget....we have not seen any financials, they tried to add one of the homeowners to the bank account but then he retracted which got them mad.

Some of the residents want to hire an attorney, but is this even necessary at this point? If the bank takes it back, they will do minimal upkeep we know that, but they are also going to try to sell it to some other poor soul, right? Just like what is happening all over the country. We are just afraid if we do take it over, the community will never have enough money to run it properly, as there are only 14 of us on a 100 acres of land. PLUS all of their liens etc. This community will sit for a while. If the bank takes it back, there is no HOA right? And therefore no dues to be paid right? The developer has told us they are leaving, but still wants our dues.... we are thinking he will just take the money and run. Several projects they promised or started, are not completed and they are out of here in a month. What are our rights and should we attempt to intervene? Or are we just asking for a boatload of trouble by doing so? Shouldn't we leave well enough alone and let the bank do their thing? Can liens be placed on us by the bank if our dues are not paid?
Thanks!

Thanks,

At some point a purchaser who buys into a covenant community that does not have adequate protections against the potential of changes in development standards is asking for trouble.

You have invested a great deal of money into your home with little protection up front. That was not a good deal then, and an even worse deal now. You have to accept responsibility for placing yourself in this position. You assumed the risk by choosing this community and this developer without adequate protection.

As long as purchasers are willing to invest in homes in covenant communities that give the declarant complete control, situations like this will continue. Only when purchasers begin to decline to purchase homes in covenant communities without adequate protection against this kind of risk, will developers begin to incorporate changes into covenant documents.