Condo Association Management Blog

You need to put a stipulation into your bylaws that no one person or persons,(Corp., group...etc.) can own more than X amount of units in said subdivision. Ours only allows 2.

I am here in Michigan and we have had developers go bankrupt. There isn't any way you could stop it. 
 
As an overview, most developers in Michigan form an LLC specific to the project to protect themselves. The LLC usually is closed when the project is finished. 
 
If the developer has units that are finished that they are renting and have formed another LLC to manage that, you would have to go after that LLC. One of the options may be to seek the rent until the association dues/fees are current. In many states this is part of state law (usually an act or legislation specifically for condominiums). The best thing the board can do is to hire a qualified attorney to represent them. 
 
Of course, you should also look at your documents. It is possible the developer does not pay full dues, only a portion of expenses based on the number of completed units. Often, the developer is not responsible for reserve fund contributions, but is responsible for costs based on that percentage, as they arise. Again, an attorney in your state well versed in these matters will serve your community far, far better.