When a developer starts a subdivision, he has also forms the Home Owners' Association. That Home Owners' Association - HOA - is then funded by the dues from each home owner. But wait, at the beginning of a development, there are more lots than home owners. Sometimes, the developer owns ALL of the lots.
The developer will often hire a management company who makes sure everything in the subdivision runs perfectly. All the trash is picked up, the pool is clean and well kept. There are beautiful flowers in the esplanade.
But the day comes when the last lots are sold. Eventually, the subdivision is all homeowners and the developer is gone with no more need to sell any homes. That's when trouble begins.
Up to this point, the developer has been "subsidizing" the development with additional funds to pay for the management company and the pool insurance and the flowers in the esplanade. It was necessary to sell the remaining lots. But with no more lots to sell, the developer lost all incentive and pulls his "subsidies" out of the subdivision.
Usually, the first time the HOA gets the bill from the management company they are in shock. Then the pool insurance comes in as well as the landscaping fees. Before you know it, the subdivision has taken a dramatic step down from its shiny new look and it will never return.
I think this type of activity by developers is fraudulent. I think that collectively, home owners can retaliate and sue developers for fraud. There is no law that says a subdivision should or has to have a pool, but a pool is a huge incentive to any prospective buyer and its absenceand the absence of any flowers in the esplanade might compel buyers to look elsewhere.