September 22, 2019
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_h0561__
HB 561

1
A bill to be entitled
2An act relating to condominiums; creating s. 627.714,
3F.S.; requiring that coverage under a unit owner's policy
4for certain assessments include at least a minimum amount
5of loss assessment coverage; requiring that every property
6insurance policy to an individual unit owner contain a
7specified provision; amending s. 633.0215, F.S.; providing
8an exemption for certain condominiums from installing a
9manual fire alarm system as required in the Life Safety
10Code if certain conditions are met; amending s. 718.103,
11F.S.; revising the definition of the term "developer" to
12exclude a bulk assignee or bulk buyer; amending s.
13718.111, F.S.; requiring that adequate property insurance
14be based upon the replacement cost of the property to be
15insured as determined by an independent appraisal or
16update of a prior appraisal; requiring that such
17replacement cost be determined at least once within a
18specified period; providing means by which an association
19may provide adequate property insurance; prohibiting such
20coverage or program from existing beyond a specified date;
21authorizing an association to consider deductibles when
22determining an adequate amount of property insurance;
23providing that failure to maintain adequate property
24insurance constitutes a breach of fiduciary duty by the
25members of the board of directors of an association;
26revising the procedures for the board to establish the
27amount of deductibles; requiring that an association
28controlled by unit owners operating as a residential
29condominium use its best efforts to obtain and maintain
30adequate property insurance to protect the association and
31certain property; requiring that every property insurance
32policy issued or renewed on or after a specified date
33provide certain coverage; excluding certain items from
34such requirement; providing that excluded items and any
35insurance thereupon are the responsibility of the unit
36owner; requiring that condominium unit owners' policies
37conform to certain provisions of state law; deleting
38provisions relating to certain hazard and casualty
39insurance policies; conforming provisions to changes made
40by the act; amending s. 718.112, F.S.; conforming cross-
41references; revising requirements for the reappointment of
42certain board members; revising board eligibility
43requirements; revising notice requirements for board
44candidates; establishing requirements for newly elected
45board members; deleting a provision prohibiting an
46association from foregoing the retrofitting with a fire
47sprinkler system of common areas in a high-rise building;
48prohibiting local authorities having jurisdiction from
49requiring retrofitting with a sprinkler system or other
50engineered lifesafety system before a specified date;
51providing requirements for a special meeting of unit
52owners that may be called every 3 years in order to vote
53to forgo retrofitting of the sprinkler system or other
54engineered lifesafety system; providing meeting notice
55requirements; providing that certain directors and
56officers delinquent in the payment of any fee, fine, or
57regular or special assessments shall be deemed to have
58abandoned their office; amending s. 718.115, F.S.;
59requiring that certain services obtained pursuant to a
60bulk contract as provided in the declaration be deemed a
61common expense; amending s. 718.301, F.S.; revising
62conditions under which unit owners other than the
63developer may elect not less than a majority of the
64members of the board of administration of an association;
65creating part VII of ch. 718, F.S., relating to distressed
66condominium relief; providing a short title; providing
67legislative findings and intent; defining the terms "bulk
68assignee" and "bulk buyer"; providing for the assignment
69of developer rights to and the assumption of developer
70rights by a bulk assignee; specifying liabilities of bulk
71assignees and bulk buyers; providing exceptions; providing
72additional responsibilities of bulk assignees and bulk
73buyers; authorizing certain entities to assign developer
74rights to a bulk assignee; limiting the number of bulk
75assignees at any given time; providing for the transfer of
76control of a board of administration; providing effects of
77such transfer on parcels acquired by a bulk assignee;
78providing obligations of a bulk assignee upon the transfer
79of control of a board of administration; requiring that a
80bulk assignee certify certain information in writing;
81providing for the resolution of a conflict between
82specified provisions of state law; providing that the
83failure of a bulk assignee or bulk buyer to comply with
84specified provisions of state law results in the loss of
85certain protections and exemptions; requiring that a bulk
86assignee or bulk buyer file certain information with the
87Division of Florida Condominiums, Timeshares, and Mobile
88Homes of the Department of Business and Professional
89Regulation before offering any units for sale or lease in
90excess of a specified term; requiring that a copy of such
91information be provided to a prospective purchaser;
92requiring that certain contracts and disclosure statements
93contain specified statements; requiring that a bulk
94assignee or bulk buyer comply with certain disclosure
95requirements; prohibiting a bulk assignee from taking
96certain actions on behalf of an association while the bulk
97assignee is in control of the board of administration of
98the association and requiring that such bulk assignee
99comply with certain requirements; requiring that a bulk
100assignee or bulk buyer comply with certain requirements
101regarding certain contracts; providing unit owners with
102specified protections regarding certain contracts;
103requiring that a bulk buyer comply with certain
104requirements regarding the transfer of a unit; prohibiting
105a person from being classified as a bulk assignee or bulk
106buyer unless condominium parcels were acquired before a
107specified date; providing for the determination of the
108date of acquisition of a parcel; providing that the
109assignment of developer rights to a bulk assignee or bulk
110buyer does not release a developer from certain
111liabilities; preserving certain liabilities for certain
112parties; repealing s. 553.509(2), F.S., relating to the
113requirement that certain residential family dwellings have
114at least one public elevator that is capable of operating
115on an alternate power source for emergency purposes;
116providing an effective date.
117
118Be It Enacted by the Legislature of the State of Florida:
119
120     Section 1.  Section 627.714, Florida Statutes, is created
121to read:
122     627.714  Residential condominium unit owner coverage; loss
123assessment coverage required; excess coverage provision
124required.-For policies issued or renewed on or after July 1,
1252010, coverage under a unit owner's residential property policy
126shall include property loss assessment coverage of at least
127$2,000 for all assessments made as a result of the same direct
128loss to the property, regardless of the number of assessments,
129owned by all members of the association collectively when such
130loss is of the type of loss covered by the unit owner's
131residential property insurance policy, to which a deductible
132shall apply of no more than $250 per direct property loss. If a
133deductible was or will be applied to other property loss
134sustained by the unit owner resulting from the same direct loss
135to the property, no deductible shall apply to the loss
136assessment coverage. Every individual unit owner's residential
137property policy must contain a provision stating that the
138coverage afforded by such policy is excess coverage over the
139amount recoverable under any other policy covering the same
140property.
141     Section 2.  Subsection (13) is added to section 633.0215,
142Florida Statutes, to read:
143     633.0215  Florida Fire Prevention Code.-
144     (13)  A condominium that is one or two stories in height
145and has an exterior means of egress corridor is exempt from
146installing a manual fire alarm system as required in s. 9.6 of
147the most recent edition of the Life Safety Code adopted in the
148Florida Fire Prevention Code.
149     Section 3.  Subsection (16) of section 718.103, Florida
150Statutes, is amended to read:
151     718.103  Definitions.-As used in this chapter, the term:
152     (16)  "Developer" means a person who creates a condominium
153or offers condominium parcels for sale or lease in the ordinary
154course of business, but does not include:
155     (a)  An owner or lessee of a condominium or cooperative
156unit who has acquired the unit for his or her own occupancy;,
157nor does it include
158     (b)  A cooperative association which creates a condominium
159by conversion of an existing residential cooperative after
160control of the association has been transferred to the unit
161owners if, following the conversion, the unit owners will be the
162same persons who were unit owners of the cooperative and no
163units are offered for sale or lease to the public as part of the
164plan of conversion;.
165     (c)  A bulk assignee or bulk buyer as defined in s.
166718.703; or
167     (d)  A state, county, or municipal entity is not a
168developer for any purposes under this act when it is acting as a
169lessor and not otherwise named as a developer in the declaration
170of condominium association.
171     Section 4.  Paragraphs (a), (b), (c), (d), (f), (g), (j),
172and (n) of subsection (11) of section 718.111, Florida Statutes,
173are amended to read:
174     718.111  The association.-
175     (11)  INSURANCE.-In order to protect the safety, health,
176and welfare of the people of the State of Florida and to ensure
177consistency in the provision of insurance coverage to
178condominiums and their unit owners, this subsection applies to
179every residential condominium in the state, regardless of the
180date of its declaration of condominium. It is the intent of the
181Legislature to encourage lower or stable insurance premiums for
182associations described in this subsection.
183     (a)  Adequate property hazard insurance, regardless of any
184requirement in the declaration of condominium for coverage by
185the association for full insurable value, replacement cost, or
186similar coverage, shall be based upon the replacement cost of
187the property to be insured as determined by an independent
188insurance appraisal or update of a prior appraisal. The
189replacement cost full insurable value shall be determined at
190least once every 36 months.
191     1.  An association or group of associations may provide
192adequate property hazard insurance through a self-insurance fund
193that complies with the requirements of ss. 624.460-624.488.
194     2.  The association may also provide adequate property
195hazard insurance coverage for a group of no fewer than three
196communities created and operating under this chapter, chapter
197719, chapter 720, or chapter 721 by obtaining and maintaining
198for such communities insurance coverage sufficient to cover an
199amount equal to the probable maximum loss for the communities
200for a 250-year windstorm event. Such probable maximum loss must
201be determined through the use of a competent model that has been
202accepted by the Florida Commission on Hurricane Loss Projection
203Methodology. No policy or program providing such coverage shall
204be issued or renewed after July 1, 2008, unless it has been
205reviewed and approved by the Office of Insurance Regulation. The
206review and approval shall include approval of the policy and
207related forms pursuant to ss. 627.410 and 627.411, approval of
208the rates pursuant to s. 627.062, a determination that the loss
209model approved by the commission was accurately and
210appropriately applied to the insured structures to determine the
211250-year probable maximum loss, and a determination that
212complete and accurate disclosure of all material provisions is
213provided to condominium unit owners prior to execution of the
214agreement by a condominium association.
215     3.  When determining the adequate amount of property hazard
216insurance coverage, the association may consider deductibles as
217determined by this subsection.
218     (b)  If an association is a developer-controlled
219association, the association shall exercise its best efforts to
220obtain and maintain insurance as described in paragraph (a).
221Failure to obtain and maintain adequate property hazard
222insurance during any period of developer control constitutes a
223breach of fiduciary responsibility by the developer-appointed
224members of the board of directors of the association, unless the
225members can show that despite such failure, they have made their
226best efforts to maintain the required coverage.
227     (c)  Policies may include deductibles as determined by the
228board.
229     1.  The deductibles shall be consistent with industry
230standards and prevailing practice for communities of similar
231size and age, and having similar construction and facilities in
232the locale where the condominium property is situated.
233     2.  The deductibles may be based upon available funds,
234including reserve accounts, or predetermined assessment
235authority at the time the insurance is obtained.
236     3.  The board shall establish the amount of deductibles
237based upon the level of available funds and predetermined
238assessment authority at a meeting of the board. Such meeting
239shall be open to all unit owners in the manner set forth in s.
240718.112(2)(e). The notice of such meeting must state the
241proposed deductible and the available funds and the assessment
242authority relied upon by the board and estimate any potential
243assessment amount against each unit, if any. The meeting
244described in this paragraph may be held in conjunction with a
245meeting to consider the proposed budget or an amendment thereto.
246     (d)  An association controlled by unit owners operating as
247a residential condominium shall use its best efforts to obtain
248and maintain adequate property insurance to protect the
249association, the association property, the common elements, and
250the condominium property that is required to be insured by the
251association pursuant to this subsection.
252     (f)  Every property hazard insurance policy issued or
253renewed on or after January 1, 2009, for the purpose of
254protecting the condominium shall provide primary coverage for:
255     1.  All portions of the condominium property as originally
256installed or replacement of like kind and quality, in accordance
257with the original plans and specifications.
258     2.  All alterations or additions made to the condominium
259property or association property pursuant to s. 718.113(2).
260     3.  The coverage shall exclude all personal property within
261the unit or limited common elements, and floor, wall, and
262ceiling coverings, electrical fixtures, appliances, water
263heaters, water filters, built-in cabinets and countertops, and
264window treatments, including curtains, drapes, blinds, hardware,
265and similar window treatment components, or replacements of any
266of the foregoing which are located within the boundaries of the
267unit and serve only such unit. Such property and any insurance
268thereupon shall be the responsibility of the unit owner.
269     (g)  A condominium unit owner's policy shall conform to the
270requirements of s. 627.714. Every hazard insurance policy issued
271or renewed on or after January 1, 2009, to an individual unit
272owner must contain a provision stating that the coverage
273afforded by such policy is excess coverage over the amount
274recoverable under any other policy covering the same property.
275Such policies must include special assessment coverage of no
276less than $2,000 per occurrence. An insurance policy issued to
277an individual unit owner providing such coverage does not
278provide rights of subrogation against the condominium
279association operating the condominium in which such individual's
280unit is located.
281     1.  All improvements or additions to the condominium
282property that benefit fewer than all unit owners shall be
283insured by the unit owner or owners having the use thereof, or
284may be insured by the association at the cost and expense of the
285unit owners having the use thereof.
286     2.  The association shall require each owner to provide
287evidence of a currently effective policy of hazard and liability
288insurance upon request, but not more than once per year. Upon
289the failure of an owner to provide a certificate of insurance
290issued by an insurer approved to write such insurance in this
291state within 30 days after the date on which a written request
292is delivered, the association may purchase a policy of insurance
293on behalf of an owner. The cost of such a policy, together with
294reconstruction costs undertaken by the association but which are
295the responsibility of the unit owner, may be collected in the
296manner provided for the collection of assessments in s. 718.116.
297     1.3.  All reconstruction work after a property casualty
298loss shall be undertaken by the association except as otherwise
299authorized in this section. A unit owner may undertake
300reconstruction work on portions of the unit with the prior
301written consent of the board of administration. However, such
302work may be conditioned upon the approval of the repair methods,
303the qualifications of the proposed contractor, or the contract
304that is used for that purpose. A unit owner shall obtain all
305required governmental permits and approvals prior to commencing
306reconstruction.
307     2.4.  Unit owners are responsible for the cost of
308reconstruction of any portions of the condominium property for
309which the unit owner is required to carry property casualty
310insurance, and any such reconstruction work undertaken by the
311association shall be chargeable to the unit owner and
312enforceable as an assessment pursuant to s. 718.116. The
313association must be an additional named insured and loss payee
314on all casualty insurance policies issued to unit owners in the
315condominium operated by the association.
316     3.5.  A multicondominium association may elect, by a
317majority vote of the collective members of the condominiums
318operated by the association, to operate such condominiums as a
319single condominium for purposes of insurance matters, including,
320but not limited to, the purchase of the property hazard
321insurance required by this section and the apportionment of
322deductibles and damages in excess of coverage. The election to
323aggregate the treatment of insurance premiums, deductibles, and
324excess damages constitutes an amendment to the declaration of
325all condominiums operated by the association, and the costs of
326insurance shall be stated in the association budget. The
327amendments shall be recorded as required by s. 718.110.
328     (j)  Any portion of the condominium property required to be
329insured by the association against property casualty loss
330pursuant to paragraph (f) which is damaged by casualty shall be
331reconstructed, repaired, or replaced as necessary by the
332association as a common expense. All property hazard insurance
333deductibles, uninsured losses, and other damages in excess of
334property hazard insurance coverage under the property hazard
335insurance policies maintained by the association are a common
336expense of the condominium, except that:
337     1.  A unit owner is responsible for the costs of repair or
338replacement of any portion of the condominium property not paid
339by insurance proceeds, if such damage is caused by intentional
340conduct, negligence, or failure to comply with the terms of the
341declaration or the rules of the association by a unit owner, the
342members of his or her family, unit occupants, tenants, guests,
343or invitees, without compromise of the subrogation rights of any
344insurer as set forth in paragraph (g).
345     2.  The provisions of subparagraph 1. regarding the
346financial responsibility of a unit owner for the costs of
347repairing or replacing other portions of the condominium
348property also apply to the costs of repair or replacement of
349personal property of other unit owners or the association, as
350well as other property, whether real or personal, which the unit
351owners are required to insure under paragraph (g).
352     3.  To the extent the cost of repair or reconstruction for
353which the unit owner is responsible under this paragraph is
354reimbursed to the association by insurance proceeds, and, to the
355extent the association has collected the cost of such repair or
356reconstruction from the unit owner, the association shall
357reimburse the unit owner without the waiver of any rights of
358subrogation.
359     4.  The association is not obligated to pay for
360reconstruction or repairs of property casualty losses as a
361common expense if the property casualty losses were known or
362should have been known to a unit owner and were not reported to
363the association until after the insurance claim of the
364association for that property casualty was settled or resolved
365with finality, or denied on the basis that it was untimely
366filed.
367     (n)  The association is not obligated to pay for any
368reconstruction or repair expenses due to property casualty loss
369to any improvements installed by a current or former owner of
370the unit or by the developer if the improvement benefits only
371the unit for which it was installed and is not part of the
372standard improvements installed by the developer on all units as
373part of original construction, whether or not such improvement
374is located within the unit. This paragraph does not relieve any
375party of its obligations regarding recovery due under any
376insurance implemented specifically for any such improvements.
377     Section 5.  Paragraphs (b), (d), (l), and (n) of subsection
378(2) of section 718.112, Florida Statutes, are amended to read:
379     718.112  Bylaws.-
380     (2)  REQUIRED PROVISIONS.-The bylaws shall provide for the
381following and, if they do not do so, shall be deemed to include
382the following:
383     (b)  Quorum; voting requirements; proxies.-
384     1.  Unless a lower number is provided in the bylaws, the
385percentage of voting interests required to constitute a quorum
386at a meeting of the members shall be a majority of the voting
387interests. Unless otherwise provided in this chapter or in the
388declaration, articles of incorporation, or bylaws, and except as
389provided in sub-subparagraph subparagraph (d)3.a., decisions
390shall be made by owners of a majority of the voting interests
391represented at a meeting at which a quorum is present.
392     2.  Except as specifically otherwise provided herein, after
393January 1, 1992, unit owners may not vote by general proxy, but
394may vote by limited proxies substantially conforming to a
395limited proxy form adopted by the division. No voting interest
396or consent right allocated to a unit owned by the association
397shall be exercised or considered for any purpose, whether for a
398quorum, an election, or otherwise. Limited proxies and general
399proxies may be used to establish a quorum. Limited proxies shall
400be used for votes taken to waive or reduce reserves in
401accordance with subparagraph (f)2.; for votes taken to waive the
402financial reporting requirements of s. 718.111(13); for votes
403taken to amend the declaration pursuant to s. 718.110; for votes
404taken to amend the articles of incorporation or bylaws pursuant
405to this section; and for any other matter for which this chapter
406requires or permits a vote of the unit owners. Except as
407provided in paragraph (d), after January 1, 1992, no proxy,
408limited or general, shall be used in the election of board
409members. General proxies may be used for other matters for which
410limited proxies are not required, and may also be used in voting
411for nonsubstantive changes to items for which a limited proxy is
412required and given. Notwithstanding the provisions of this
413subparagraph, unit owners may vote in person at unit owner
414meetings. Nothing contained herein shall limit the use of
415general proxies or require the use of limited proxies for any
416agenda item or election at any meeting of a timeshare
417condominium association.
418     3.  Any proxy given shall be effective only for the
419specific meeting for which originally given and any lawfully
420adjourned meetings thereof. In no event shall any proxy be valid
421for a period longer than 90 days after the date of the first
422meeting for which it was given. Every proxy is revocable at any
423time at the pleasure of the unit owner executing it.
424     4.  A member of the board of administration or a committee
425may submit in writing his or her agreement or disagreement with
426any action taken at a meeting that the member did not attend.
427This agreement or disagreement may not be used as a vote for or
428against the action taken and may not be used for the purposes of
429creating a quorum.
430     5.  When any of the board or committee members meet by
431telephone conference, those board or committee members attending
432by telephone conference may be counted toward obtaining a quorum
433and may vote by telephone. A telephone speaker must be used so
434that the conversation of those board or committee members
435attending by telephone may be heard by the board or committee
436members attending in person as well as by any unit owners
437present at a meeting.
438     (d)  Unit owner meetings.-
439     1.  There shall be an annual meeting of the unit owners
440held at the location provided in the association bylaws and, if
441the bylaws are silent as to the location, the meeting shall be
442held within 45 miles of the condominium property. However, such
443distance requirement does not apply to an association governing
444a timeshare condominium. Unless the bylaws provide otherwise, a
445vacancy on the board caused by the expiration of a director's
446term shall be filled by electing a new board member, and the
447election shall be by secret ballot; however, if the number of
448vacancies equals or exceeds the number of candidates, no
449election is required. Except in a timeshare condominium, the
450terms of all members of the board shall expire at the annual
451meeting and such board members may stand for reelection unless
452otherwise permitted by the bylaws. In the event that the bylaws
453permit staggered terms of no more than 2 years and upon approval
454of a majority of the total voting interests, the association
455board members may serve 2-year staggered terms. If the number no
456person is interested in or demonstrates an intention to run for
457the position of a board members member whose terms have term has
458expired according to the provisions of this subparagraph exceeds
459the number of eligible members showing interest in or
460demonstrating an intention to run for the vacant positions, each
461such board member whose term has expired shall become eligible
462for reappointment be automatically reappointed to the board of
463administration and need not stand for reelection. In a
464condominium association of more than 10 units or in a
465condominium association that does not include timeshare units,
466coowners of a unit may not serve as members of the board of
467directors at the same time unless they own more than one unit
468and are not co-occupants of a unit. Any unit owner desiring to
469be a candidate for board membership must shall comply with sub-
470subparagraph subparagraph 3.a. A person who has been suspended
471or removed by the division under this chapter, or who is
472delinquent in the payment of any fee, fine, or special or
473regular assessment as provided in paragraph (n), is not eligible
474for board membership. A person who has been convicted of any
475felony in this state or in a United States District or
476Territorial Court, or who has been convicted of any offense in
477another jurisdiction that would be considered a felony if
478committed in this state, is not eligible for board membership
479unless such felon's civil rights have been restored for a period
480of no less than 5 years as of the date on which such person
481seeks election to the board. The validity of an action by the
482board is not affected if it is later determined that a member of
483the board is ineligible for board membership due to having been
484convicted of a felony.
485     2.  The bylaws shall provide the method of calling meetings
486of unit owners, including annual meetings. Written notice, which
487notice must include an agenda, shall be mailed, hand delivered,
488or electronically transmitted to each unit owner at least 14
489days prior to the annual meeting and shall be posted in a
490conspicuous place on the condominium property at least 14
491continuous days preceding the annual meeting. Upon notice to the
492unit owners, the board shall by duly adopted rule designate a
493specific location on the condominium property or association
494property upon which all notices of unit owner meetings shall be
495posted; however, if there is no condominium property or
496association property upon which notices can be posted, this
497requirement does not apply. In lieu of or in addition to the
498physical posting of notice of any meeting of the unit owners on
499the condominium property, the association may, by reasonable
500rule, adopt a procedure for conspicuously posting and repeatedly
501broadcasting the notice and the agenda on a closed-circuit cable
502television system serving the condominium association. However,
503if broadcast notice is used in lieu of a notice posted
504physically on the condominium property, the notice and agenda
505must be broadcast at least four times every broadcast hour of
506each day that a posted notice is otherwise required under this
507section. When broadcast notice is provided, the notice and
508agenda must be broadcast in a manner and for a sufficient
509continuous length of time so as to allow an average reader to
510observe the notice and read and comprehend the entire content of
511the notice and the agenda. Unless a unit owner waives in writing
512the right to receive notice of the annual meeting, such notice
513shall be hand delivered, mailed, or electronically transmitted
514to each unit owner. Notice for meetings and notice for all other
515purposes shall be mailed to each unit owner at the address last
516furnished to the association by the unit owner, or hand
517delivered to each unit owner. However, if a unit is owned by
518more than one person, the association shall provide notice, for
519meetings and all other purposes, to that one address which the
520developer initially identifies for that purpose and thereafter
521as one or more of the owners of the unit shall so advise the
522association in writing, or if no address is given or the owners
523of the unit do not agree, to the address provided on the deed of
524record. An officer of the association, or the manager or other
525person providing notice of the association meeting, shall
526provide an affidavit or United States Postal Service certificate
527of mailing, to be included in the official records of the
528association affirming that the notice was mailed or hand
529delivered, in accordance with this provision.
530     3.a.  The members of the board shall be elected by written
531ballot or voting machine. Proxies shall in no event be used in
532electing the board, either in general elections or elections to
533fill vacancies caused by recall, resignation, or otherwise,
534unless otherwise provided in this chapter. Not less than 60 days
535before a scheduled election, the association shall mail,
536deliver, or electronically transmit, whether by separate
537association mailing or included in another association mailing,
538delivery, or transmission, including regularly published
539newsletters, to each unit owner entitled to a vote, a first
540notice of the date of the election along with a certification
541form provided by the division attesting that he or she has read
542and understands, to the best of his or her ability, the
543governing documents of the association and the provisions of
544this chapter and any applicable rules. Any unit owner or other
545eligible person desiring to be a candidate for the board must
546give written notice of intent to be a candidate to the
547association not less than 40 days before a scheduled election.
548Together with the written notice and agenda as set forth in
549subparagraph 2., the association shall mail, deliver, or
550electronically transmit a second notice of the election to all
551unit owners entitled to vote therein, together with a ballot
552which shall list all candidates. Upon request of a candidate,
553the association shall include an information sheet, no larger
554than 8 1/2 inches by 11 inches, which must be furnished by the
555candidate not less than 35 days before the election, shall along
556with the signed certification form provided for in this
557subparagraph, to be included with the mailing, delivery, or
558transmission of the ballot, with the costs of mailing, delivery,
559or electronic transmission and copying to be borne by the
560association. The association is not liable for the contents of
561the information sheets prepared by the candidates. In order to
562reduce costs, the association may print or duplicate the
563information sheets on both sides of the paper. The division
564shall by rule establish voting procedures consistent with the
565provisions contained herein, including rules establishing
566procedures for giving notice by electronic transmission and
567rules providing for the secrecy of ballots. Elections shall be
568decided by a plurality of those ballots cast. There shall be no
569quorum requirement; however, at least 20 percent of the eligible
570voters must cast a ballot in order to have a valid election of
571members of the board. No unit owner shall permit any other
572person to vote his or her ballot, and any such ballots
573improperly cast shall be deemed invalid, provided any unit owner
574who violates this provision may be fined by the association in
575accordance with s. 718.303. A unit owner who needs assistance in
576casting the ballot for the reasons stated in s. 101.051 may
577obtain assistance in casting the ballot. The regular election
578shall occur on the date of the annual meeting. The provisions of
579this sub-subparagraph subparagraph shall not apply to timeshare
580condominium associations. Notwithstanding the provisions of this
581sub-subparagraph subparagraph, an election is not required
582unless more candidates file notices of intent to run or are
583nominated than board vacancies exist.
584     b.  Within 90 days after being elected to the board, each
585newly elected director shall certify in writing to the secretary
586of the association that he or she has read the association's
587declarations of covenants and restrictions, articles of
588incorporation, bylaws, and current written policies; that he or
589she will work to uphold such documents and policies to the best
590of his or her ability; and that he or she will faithfully
591discharge his or her fiduciary responsibility to the
592association's members. In lieu of this written certification,
593the newly elected director may submit a certificate of
594satisfactory completion of the educational curriculum
595administered by a division-approved condominium education
596provider. Failure to timely file the written certification or
597educational certificate automatically disqualifies the director
598from service on the board. The secretary shall cause the
599association to retain a director's written certification or
600educational certificate for inspection by the members for 5
601years after a director's election. Failure to have such written
602certification or educational certificate on file does not affect
603the validity of any appropriate action.
604     4.  Any approval by unit owners called for by this chapter
605or the applicable declaration or bylaws, including, but not
606limited to, the approval requirement in s. 718.111(8), shall be
607made at a duly noticed meeting of unit owners and shall be
608subject to all requirements of this chapter or the applicable
609condominium documents relating to unit owner decisionmaking,
610except that unit owners may take action by written agreement,
611without meetings, on matters for which action by written
612agreement without meetings is expressly allowed by the
613applicable bylaws or declaration or any statute that provides
614for such action.
615     5.  Unit owners may waive notice of specific meetings if
616allowed by the applicable bylaws or declaration or any statute.
617If authorized by the bylaws, notice of meetings of the board of
618administration, unit owner meetings, except unit owner meetings
619called to recall board members under paragraph (j), and
620committee meetings may be given by electronic transmission to
621unit owners who consent to receive notice by electronic
622transmission.
623     6.  Unit owners shall have the right to participate in
624meetings of unit owners with reference to all designated agenda
625items. However, the association may adopt reasonable rules
626governing the frequency, duration, and manner of unit owner
627participation.
628     7.  Any unit owner may tape record or videotape a meeting
629of the unit owners subject to reasonable rules adopted by the
630division.
631     8.  Unless otherwise provided in the bylaws, any vacancy
632occurring on the board before the expiration of a term may be
633filled by the affirmative vote of the majority of the remaining
634directors, even if the remaining directors constitute less than
635a quorum, or by the sole remaining director. In the alternative,
636a board may hold an election to fill the vacancy, in which case
637the election procedures must conform to the requirements of sub-
638subparagraph subparagraph 3.a. unless the association governs 10
639units or fewer less and has opted out of the statutory election
640process, in which case the bylaws of the association control.
641Unless otherwise provided in the bylaws, a board member
642appointed or elected under this section shall fill the vacancy
643for the unexpired term of the seat being filled. Filling
644vacancies created by recall is governed by paragraph (j) and
645rules adopted by the division.
646
647Notwithstanding subparagraph subparagraphs (b)2. and sub-
648subparagraph (d)3.a., an association of 10 or fewer units may,
649by the affirmative vote of a majority of the total voting
650interests, provide for different voting and election procedures
651in its bylaws, which vote may be by a proxy specifically
652delineating the different voting and election procedures. The
653different voting and election procedures may provide for
654elections to be conducted by limited or general proxy.
655     (l)  Certificate of compliance.-There shall be a provision
656that a certificate of compliance from a licensed electrical
657contractor or electrician may be accepted by the association's
658board as evidence of compliance of the condominium units with
659the applicable fire and life safety code. Notwithstanding the
660provisions of chapter 633 or of any other code, statute,
661ordinance, administrative rule, or regulation, or any
662interpretation of the foregoing, an association, condominium, or
663unit owner is not obligated to retrofit the common elements or
664units of a residential condominium with a fire sprinkler system
665or other engineered lifesafety system in a building that has
666been certified for occupancy by the applicable governmental
667entity, if the unit owners have voted to forego such
668retrofitting and engineered lifesafety system by the affirmative
669vote of two-thirds of all voting interests in the affected
670condominium. However, a condominium association may not vote to
671forego the retrofitting with a fire sprinkler system of common
672areas in a high-rise building. For purposes of this subsection,
673the term "high-rise building" means a building that is greater
674than 75 feet in height where the building height is measured
675from the lowest level of fire department access to the floor of
676the highest occupiable story. For purposes of this subsection,
677the term "common areas" means any enclosed hallway, corridor,
678lobby, stairwell, or entryway. In no event shall the local
679authority having jurisdiction require completion of retrofitting
680of common areas with a sprinkler system or other engineered
681lifesafety system before the end of 2019 2014.
682     1.  A vote to forego retrofitting may be obtained by
683limited proxy or by a ballot personally cast at a duly called
684membership meeting, or by execution of a written consent by the
685member, and shall be effective upon the recording of a
686certificate attesting to such vote in the public records of the
687county where the condominium is located. The association shall
688mail, hand deliver, or electronically transmit to each unit
689owner written notice at least 14 days prior to such membership
690meeting in which the vote to forego retrofitting of the required
691fire sprinkler system is to take place. Within 30 days after the
692association's opt-out vote, notice of the results of the opt-out
693vote shall be mailed, hand delivered, or electronically
694transmitted to all unit owners. Evidence of compliance with this
69530-day notice shall be made by an affidavit executed by the
696person providing the notice and filed among the official records
697of the association. After such notice is provided to each owner,
698a copy of such notice shall be provided by the current owner to
699a new owner prior to closing and shall be provided by a unit
700owner to a renter prior to signing a lease.
701     2.  A vote to forego retrofitting may be obtained at a
702special meeting of the unit owners called by a petition of least
70325 percent of the voting interests, once every 3 years. Notice
704shall be provided as required for any regularly called meeting
705of the unit owners, and the notice shall state the purpose of
706the meeting. Electronic transmission may not be used as a method
707of giving notice of a meeting called in whole or in part for
708this purpose.
709     3.2.  As part of the information collected annually from
710condominiums, the division shall require condominium
711associations to report the membership vote and recording of a
712certificate under this subsection and, if retrofitting has been
713undertaken, the per-unit cost of such work. The division shall
714annually report to the Division of State Fire Marshal of the
715Department of Financial Services the number of condominiums that
716have elected to forego retrofitting.
717     (n)  Director or officer delinquencies.-A director or
718officer more than 90 days delinquent in the payment of any fee,
719fine, or regular or special assessments shall be deemed to have
720abandoned the office, creating a vacancy in the office to be
721filled according to law.
722     Section 6.  Paragraph (d) of subsection (1) of section
723718.115, Florida Statutes, is amended to read:
724     718.115  Common expenses and common surplus.-
725     (1)
726     (d)  If the association is authorized pursuant to so
727provided in the declaration to enter into a bulk contract for
728communications services as defined in chapter 202, information
729services, or Internet services, the costs charged for such
730services, the cost of a master antenna television system or duly
731franchised cable television service obtained pursuant to a bulk
732contract shall be deemed a common expense. If the declaration
733does not authorize the association to enter into a bulk contract
734for provide for the cost of communications services as defined
735in chapter 202, information services, or Internet services a
736master antenna television system or duly franchised cable
737television service obtained under a bulk contract as a common
738expense, the board may enter into such a contract for such
739services., and The cost of the services under a bulk contract
740service will be a common expense but allocated on a per-unit
741basis rather than a percentage basis if the declaration provides
742for other than an equal sharing of common expenses, and any
743contract entered into before July 1, 1998, in which the cost of
744the service is not equally divided among all unit owners, may be
745changed by vote of a majority of the voting interests present at
746a regular or special meeting of the association, to allocate the
747cost equally among all units. The contract shall be for a term
748of not less than 2 years.
749     1.  Any contract made by the board after the effective date
750hereof for communications services as defined in chapter 202,
751information services, or Internet services a community antenna
752system or duly franchised cable television service may be
753canceled by a majority of the voting interests present at the
754next regular or special meeting of the association. Any member
755may make a motion to cancel the said contract, but if no motion
756is made or if such motion fails to obtain the required majority
757at the next regular or special meeting, whichever occurs is
758sooner, following the making of the contract, then such contract
759shall be deemed ratified for the term therein expressed. Any
760contract made by the association prior to assumption of control
761of the association by unit owners other than the developer may
762be canceled within 120 days after unit owners other than the
763developer elect a majority of the board of directors consistent
764with the provisions of s. 718.302(1).
765     2.  Any such contract shall provide, and shall be deemed to
766provide if not expressly set forth, that any hearing-impaired or
767legally blind unit owner who does not occupy the unit with a
768non-hearing-impaired or sighted person, or any unit owner
769receiving supplemental security income under Title XVI of the
770Social Security Act or food stamps as administered by the
771Department of Children and Family Services pursuant to s.
772414.31, may discontinue the cable or video service without
773incurring disconnect fees, penalties, or subsequent service
774charges, and, as to such units, the owners shall not be required
775to pay any common expenses charge related to such service. If
776less than all members of an association share the expenses of
777cable or video service television, the expense shall be shared
778equally by all participating unit owners. The association may
779use the provisions of s. 718.116 to enforce payment of the
780shares of such costs by the unit owners receiving cable or video
781service television.
782     Section 7.  Subsection (1) of section 718.301, Florida
783Statutes, is amended to read:
784     718.301  Transfer of association control; claims of defect
785by association.-
786     (1)  When unit owners other than the developer own 15
787percent or more of the units in a condominium that will be
788operated ultimately by an association, the unit owners other
789than the developer shall be entitled to elect no less than one-
790third of the members of the board of administration of the
791association. Unit owners other than the developer are entitled
792to elect not less than a majority of the members of the board of
793administration of an association:
794     (a)  Three years after 50 percent of the units that will be
795operated ultimately by the association have been conveyed to
796purchasers;
797     (b)  Three months after 90 percent of the units that will
798be operated ultimately by the association have been conveyed to
799purchasers;
800     (c)  When all the units that will be operated ultimately by
801the association have been completed, some of them have been
802conveyed to purchasers, and none of the others are being offered
803for sale by the developer in the ordinary course of business;
804     (d)  When some of the units have been conveyed to
805purchasers and none of the others are being constructed or
806offered for sale by the developer in the ordinary course of
807business;
808     (e)  When the developer files a petition seeking protection
809in bankruptcy;
810     (f)  When a receiver for the developer is appointed by a
811circuit court and is not discharged within 30 days after such
812appointment, unless the court determines within 30 days after
813appointment of the receiver that transfer of control would be
814detrimental to the association or its members; or
815     (g)  Seven years after recordation of the declaration of
816condominium; or, in the case of an association which may
817ultimately operate more than one condominium, 7 years after
818recordation of the declaration for the first condominium it
819operates; or, in the case of an association operating a phase
820condominium created pursuant to s. 718.403, 7 years after
821recordation of the declaration creating the initial phase,
822
823whichever occurs first. The developer is entitled to elect at
824least one member of the board of administration of an
825association as long as the developer holds for sale in the
826ordinary course of business at least 5 percent, in condominiums
827with fewer than 500 units, and 2 percent, in condominiums with
828more than 500 units, of the units in a condominium operated by
829the association. Following the time the developer relinquishes
830control of the association, the developer may exercise the right
831to vote any developer-owned units in the same manner as any
832other unit owner except for purposes of reacquiring control of
833the association or selecting the majority members of the board
834of administration.
835     Section 8.  Part VII of chapter 718, Florida Statutes,
836consisting of sections 718.701, 718.702, 718.703, 718.704,
837718.705, 718.706, 718.707, and 718.708, is created to read:
838
     PART VII
839
     DISTRESSED CONDOMINIUM RELIEF
840     718.701  Short title.-This part may be cited as the
841"Distressed Condominium Relief Act."
842     718.702  Legislative intent.-
843     (1)  The Legislature acknowledges the massive downturn in
844the condominium market which has transpired throughout the state
845and the impact of such downturn on developers, lenders, unit
846owners, and condominium associations. Numerous condominium
847projects have either failed or are in the process of failing,
848whereby the condominium has a small percentage of third-party
849unit owners as compared to the unsold inventory of units. As a
850result of the inability to find purchasers for this inventory of
851units, which results in part from the devaluing of real estate
852in this state, developers are unable to satisfy the requirements
853of their lenders, leading to defaults on mortgages.
854Consequently, lenders are faced with the task of finding a
855solution to the problem in order to be paid for their
856investments.
857     (2)  The Legislature recognizes that all of the factors
858listed in this section lead to condominiums becoming distressed,
859resulting in detriment to the unit owners and the condominium
860association on account of the resulting shortage of assessment
861moneys available to support the financial requirements for
862proper maintenance of the condominium. Such shortage and the
863resulting lack of proper maintenance further erode property
864values. The Legislature finds that individuals and entities
865within Florida and in other states have expressed interest in
866purchasing unsold inventory in one or more condominium projects,
867but are reticent to do so because of accompanying liabilities
868inherited from the original developer, which are by definition
869imputed to the successor purchaser, including a foreclosing
870mortgagee. This results in the potential purchaser having
871unknown and unquantifiable risks, and potential successor
872purchasers are unwilling to accept such risks. The result is
873that condominium projects stagnate, leaving all parties involved
874at an impasse without the ability to find a solution.
875     (3)  The Legislature finds and declares that it is the
876public policy of this state to protect the interests of
877developers, lenders, unit owners, and condominium associations
878with regard to distressed condominiums, and that there is a need
879for relief from certain provisions of the Florida Condominium
880Act geared toward enabling economic opportunities within these
881condominiums for successor purchasers, including foreclosing
882mortgagees. Such relief would benefit existing unit owners and
883condominium associations. The Legislature further finds and
884declares that this situation cannot be open-ended without
885potentially prejudicing the rights of unit owners and
886condominium associations, and thereby declares that the
887provisions of this part shall be used by purchasers of
888condominium inventory for a specific and defined period.
889     718.703  Definitions.-As used in this part, the term:
890     (1)  "Bulk assignee" means a person who:
891     (a)  Acquires more than seven condominium parcels as set
892forth in s. 718.707; and
893     (b)  Receives an assignment of some or all of the rights of
894the developer as are set forth in the declaration of condominium
895or in this chapter by a written instrument recorded as an
896exhibit to the deed or as a separate instrument in the public
897records of the county in which the condominium is located.
898     (2)  "Bulk buyer" means a person who acquires more than
899seven condominium parcels as set forth in s. 718.707 but who
900does not receive an assignment of any developer rights other
901than the right to conduct sales, leasing, and marketing
902activities within the condominium.
903     718.704  Assignment of developer rights to and assumption
904of developer rights by bulk assignee; bulk buyer.-
905     (1)  A bulk assignee shall be deemed to have assumed and is
906liable for all duties and responsibilities of the developer
907under the declaration and this chapter, except:
908     (a)  Warranties of the developer under s. 718.203(1) or s.
909718.618, except for design, construction, development, or repair
910work performed by or on behalf of such bulk assignee.
911     (b)  The obligation to:
912     1.  Fund converter reserves under s. 718.618 for a unit
913which was not acquired by the bulk assignee; or
914     2.  Provide converter warranties on any portion of the
915condominium property except as may be expressly provided by the
916bulk assignee in the contract for purchase and sale executed
917with a purchaser and pertaining to any design, construction,
918development, or repair work performed by or on behalf of the
919bulk assignee.
920     (c)  The requirement to provide the association with a
921cumulative audit of the association's finances from the date of
922formation of the condominium association as required by s.
923718.301. However, the bulk assignee shall provide an audit for
924the period for which the bulk assignee elects a majority of the
925members of the board of administration.
926     (d)  Any liability arising out of or in connection with
927actions taken by the board of administration or the developer-
928appointed directors before the bulk assignee elects a majority
929of the members of the board of administration.
930     (e)  Any liability for or arising out of the developer's
931failure to fund previous assessments or to resolve budgetary
932deficits in relation to a developer's right to guarantee
933assessments, except as otherwise provided in subsection (2).
934
935Further, the bulk assignee is responsible for delivering
936documents and materials in accordance with s. 718.705(3). A bulk
937assignee may expressly assume some or all of the obligations of
938the developer described in paragraphs (a)-(e).
939     (2)  A bulk assignee receiving the assignment of the rights
940of the developer to guarantee the level of assessments and fund
941budgetary deficits pursuant to s. 718.116 shall be deemed to
942have assumed and is liable for all obligations of the developer
943with respect to such guarantee, including any applicable funding
944of reserves to the extent required by law, for as long as the
945guarantee remains in effect. A bulk assignee not receiving an
946assignment of the right of the developer to guarantee the level
947of assessments and fund budgetary deficits pursuant to s.
948718.116 or a bulk buyer is not deemed to have assumed and is not
949liable for the obligations of the developer with respect to such
950guarantee, but is responsible for payment of assessments in the
951same manner as all other owners of condominium parcels.
952     (3)  A bulk buyer is liable for the duties and
953responsibilities of the developer under the declaration and this
954chapter only to the extent provided in this part, together with
955any other duties or responsibilities of the developer expressly
956assumed in writing by the bulk buyer.
957     (4)  An acquirer of condominium parcels is not considered a
958bulk assignee or a bulk buyer if the transfer to such acquirer
959was made with the intent to hinder, delay, or defraud any
960purchaser, unit owner, or the association, or if the acquirer is
961a person who would constitute an insider under s. 726.102(7).
962     (5)  An assignment of developer rights to a bulk assignee
963may be made by the developer, a previous bulk assignee, or a
964court of competent jurisdiction acting on behalf of the
965developer or the previous bulk assignee. At any particular time,
966there may be no more than one bulk assignee within a
967condominium, but there may be more than one bulk buyer. If more
968than one acquirer of condominium parcels receives an assignment
969of developer rights from the same person, the bulk assignee is
970the acquirer whose instrument of assignment is recorded first in
971applicable public records.
972     718.705  Board of administration; transfer of control.-
973     (1)  For purposes of determining the timing for transfer of
974control of the board of administration of the association to
975unit owners other than the developer under s. 718.301(1)(a) or
976(b), if a bulk assignee is entitled to elect a majority of the
977members of the board, a condominium parcel acquired by the bulk
978assignee shall not be deemed to be conveyed to a purchaser, or
979to be owned by an owner other than the developer, until such
980condominium parcel is conveyed to an owner who is not a bulk
981assignee.
982     (2)  Unless control of the board of administration of the
983association has already been relinquished pursuant to s.
984718.301(1), the bulk assignee is obligated to relinquish control
985of the association in accordance with s. 718.301 and this part.
986     (3)  When a bulk assignee relinquishes control of the board
987of administration as set forth in s. 718.301, the bulk assignee
988shall deliver all of those items required by s. 718.301(4).
989However, the bulk assignee is not required to deliver items and
990documents not in the possession of the bulk assignee during the
991period during which the bulk assignee was the owner of
992condominium parcels. In conjunction with the acquisition of
993condominium parcels, a bulk assignee shall undertake a good
994faith effort to obtain the documents and materials required to
995be provided to the association pursuant to s. 718.301(4). To the
996extent the bulk assignee is not able to obtain all of such
997documents and materials, the bulk assignee shall certify in
998writing to the association the names or descriptions of the
999documents and materials that were not obtainable by the bulk
1000assignee. Delivery of the certificate relieves the bulk assignee
1001of responsibility for the delivery of the documents and
1002materials referenced in the certificate as otherwise required
1003under ss. 718.112 and 718.301 and this part. The responsibility
1004of the bulk assignee for the audit required by s. 718.301(4)
1005shall commence as of the date on which the bulk assignee elected
1006a majority of the members of the board of administration.
1007     (4)  If a conflict arises between the provisions or
1008application of this section and s. 718.301, this section shall
1009prevail.
1010     (5)  Failure of a bulk assignee or bulk buyer to comply
1011with all the requirements contained in this part shall result in
1012the loss of any and all protections or exemptions provided under
1013this part.
1014     718.706  Specific provisions pertaining to offering of
1015units by a bulk assignee or bulk buyer.-
1016     (1)  Before offering any units for sale or for lease for a
1017term exceeding 5 years, a bulk assignee or bulk buyer must file
1018the following documents with the division and provide such
1019documents to a prospective purchaser:
1020     (a)  An updated prospectus or offering circular, or a
1021supplement to the prospectus or offering circular, filed by the
1022creating developer prepared in accordance with s. 718.504, which
1023shall include the form of contract for purchase and sale in
1024compliance with s. 718.503(2).
1025     (b)  An updated Frequently Asked Questions and Answers
1026sheet.
1027     (c)  The executed escrow agreement if required under s.
1028718.202.
1029     (d)  The financial information required by s. 718.111(13).
1030However, if a financial information report does not exist for
1031the fiscal year before acquisition of title by the bulk assignee
1032or bulk buyer, or accounting records cannot be obtained in good
1033faith by the bulk assignee or bulk buyer which would permit
1034preparation of the required financial information report, the
1035bulk assignee or bulk buyer is excused from the requirement of
1036this paragraph. However, the bulk assignee or bulk buyer must
1037include in the purchase contract the following statement in
1038conspicuous type:
1039
1040     THE FINANCIAL INFORMATION REPORT REQUIRED UNDER
1041SECTION 718.111(13), FLORIDA STATUTES, FOR THE
1042IMMEDIATELY PRECEDING FISCAL YEAR OF THE ASSOCIATION
1043IS NOT AVAILABLE OR CANNOT BE CREATED BY THE SELLER AS
1044A RESULT OF INSUFFICIENT ACCOUNTING RECORDS OF THE
1045ASSOCIATION.
1046
1047     (2)  Before offering any units for sale or for lease for a
1048term exceeding 5 years, a bulk assignee must file with the
1049division and provide to a prospective purchaser a disclosure
1050statement that must include, but is not limited to:
1051     (a)  A description to the purchaser of any rights of the
1052developer which have been assigned to the bulk assignee.
1053     (b)  The following statement in conspicuous type:
1054
1055     SELLER IS NOT OBLIGATED FOR ANY WARRANTIES OF THE
1056DEVELOPER UNDER SECTION 718.203(1) OR SECTION 718.618,
1057FLORIDA STATUTES, AS APPLICABLE, EXCEPT FOR DESIGN,
1058CONSTRUCTION, DEVELOPMENT, OR REPAIR WORK PERFORMED BY
1059OR ON BEHALF OF SELLER.
1060
1061     (c)  If the condominium is a conversion subject to part VI,
1062the following statement in conspicuous type:
1063
1064     SELLER HAS NO OBLIGATION TO FUND CONVERTER
1065RESERVES OR TO PROVIDE CONVERTER WARRANTIES UNDER
1066SECTION 718.618, FLORIDA STATUTES, ON ANY PORTION OF
1067THE CONDOMINIUM PROPERTY EXCEPT AS MAY BE EXPRESSLY
1068REQUIRED OF THE SELLER IN THE CONTRACT FOR PURCHASE
1069AND SALE EXECUTED BY THE SELLER AND THE PREVIOUS
1070DEVELOPER AND PERTAINING TO ANY DESIGN, CONSTRUCTION,
1071DEVELOPMENT, OR REPAIR WORK PERFORMED BY OR ON BEHALF
1072OF THE SELLER.
1073
1074     (3)  In addition to the requirements set forth in
1075subsection (1), a bulk assignee or bulk buyer must comply with
1076the nondeveloper disclosure requirements set forth in s.
1077718.503(2) before offering any units for sale or for lease for a
1078term exceeding 5 years.
1079     (4)  A bulk assignee, while in control of the board of
1080administration of the association, may not authorize, on behalf
1081of the association:
1082     (a)  The waiver of reserves or the reduction of funding of
1083the reserves in accordance with s. 718.112(2)(f)2., unless
1084approved by a majority of the voting interests not controlled by
1085the developer, bulk assignee, or bulk buyer; or
1086     (b)  The use of reserve expenditures for other purposes in
1087accordance with s. 718.112(2)(f)3., unless approved by a
1088majority of the voting interests not controlled by the
1089developer, bulk assignee, or bulk buyer.
1090     (5)  A bulk assignee, while in control of the board of
1091administration of the association, must comply with the
1092requirements imposed upon developers to transfer control of the
1093association to the unit owners in accordance with s. 718.301.
1094     (6)  A bulk assignee or bulk buyer must comply with all the
1095requirements of s. 718.302 regarding any contracts entered into
1096by the association during the period the bulk assignee or bulk
1097buyer maintains control of the board of administration. Unit
1098owners shall be afforded all the protections contained in s.
1099718.302 regarding agreements entered into by the association
1100before unit owners other than the developer, bulk assignee, or
1101bulk buyer elected a majority of the board of administration.
1102     (7)  A bulk buyer must comply with the requirements
1103contained in the declaration regarding any transfer of a unit,
1104including sales, leases, and subleases. A bulk buyer is not
1105entitled to any exemptions afforded a developer or successor
1106developer under this chapter regarding any transfer of a unit,
1107including sales, leases, or subleases.
1108     718.707  Time limitation for classification as bulk
1109assignee or bulk buyer.-A person acquiring condominium parcels
1110may not be classified as a bulk assignee or bulk buyer unless
1111the condominium parcels were acquired before July 1, 2011. The
1112date of such acquisition shall be determined by the date of
1113recording of a deed or other instrument of conveyance for such
1114parcels in the public records of the county in which the
1115condominium is located or by the date of issuance of a
1116certificate of title in a foreclosure proceeding with respect to
1117such condominium parcels.
1118     718.708  Liability of developers and others.-An assignment
1119of developer rights to a bulk assignee or bulk buyer does not
1120release the developer from any liabilities under the declaration
1121or this chapter. This part does not limit the liability of the
1122developer for claims brought by unit owners, bulk assignees, or
1123bulk buyers for violations of this chapter by the developer,
1124unless specifically excluded in this part. Nothing contained
1125within this part waives, releases, compromises, or limits the
1126liability of contractors, subcontractors, materialmen,
1127manufacturers, architects, engineers, or any participant in the
1128design or construction of a condominium for any claim brought by
1129an association, unit owners, bulk assignees, or bulk buyers
1130arising from the design of the condominium, construction
1131defects, misrepresentations associated with condominium
1132property, or violations of this chapter, unless specifically
1133excluded in this part.
1134     Section 9.  Subsection (2) of section 553.509, Florida
1135Statutes, is repealed.
1136     Section 10.  This act shall take effect upon becoming a
1137law.


CODING: Words stricken are deletions; words underlined are additions.
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