If the covenants say,"a lot becomes a dues paying lot when it is conveyed to a residential owner", does this mean the developer does not pay HOA dues

this can be a tricky situation, but if you are still marketing for lots and you are a successor in interest or an assignee of the developer, the original covenants should be enforced and no dues should be assessed against the developer lots. This assumes that you are not using any of the lots. You might want to require the homeowners association to get an opinion of counsel before they take any action against you.   This is specific to Florida law and does not constitute legal advice as the facts presented are anonymous and incomplete. This is intended for general education only and does not create an attorney-client relationship. This should not be relied on and you must seek your own attorney client relationship.