Liabilities of Homeowners' Association Developer-Appointed Directors...

Developer appointed board members have the same fiduciary duties and responsibilities as non-developer appointed board members. Furthermore, developer appointed board members are expressly excluded from certain statutory liability limitations. Meaning, they can be sued in their personal capacity. If a developer has established a shell corporation, or has no assets, the developer appointed board members may be an associations only source of redress in the situation where a developer has acted negligently or fraudulently.