September 22, 2019
Print This PagePrint This Page

  *
Session:
Bill #:
Session:
Chamber: View Search Tips
Search Term:
Year: View Search Tips
Search Term:
_h0561c1
CS/HB 561

1
A bill to be entitled
2An act relating to community associations; creating s.
3627.714, F.S.; requiring that coverage under a unit
4owner's policy for certain assessments include at least a
5minimum amount of loss assessment coverage; requiring that
6every property insurance policy to an individual unit
7owner contain a specified provision; amending s. 633.0215,
8F.S.; providing an exemption for certain condominiums from
9installing a manual fire alarm system as required in the
10Life Safety Code if certain conditions are met; amending
11s. 718.103, F.S.; revising the definition of the term
12"developer" to exclude a bulk assignee or bulk buyer;
13amending s. 718.111, F.S.; requiring that adequate
14property insurance be based upon the replacement cost of
15the property to be insured as determined by an independent
16appraisal or update of a prior appraisal; requiring that
17such replacement 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; amending s. 719.1055, F.S.; providing an
113additional required provision in cooperative bylaws;
114deleting a provision prohibiting an association from
115foregoing the retrofitting with a fire sprinkler system of
116common areas in a high-rise building; prohibiting local
117authorities having jurisdiction from requiring
118retrofitting with a sprinkler system or other engineered
119lifesafety system before a specified date; providing
120requirements for a special meeting of unit owners that may
121be called every 3 years in order to vote to require
122retrofitting of the sprinkler system or other engineered
123lifesafety system; providing meeting notice requirements;
124repealing s. 553.509(2), F.S., relating to the requirement
125that certain residential family dwellings have at least
126one public elevator that is capable of operating on an
127alternate power source for emergency purposes; providing
128an effective date.
129
130Be It Enacted by the Legislature of the State of Florida:
131
132     Section 1.  Section 627.714, Florida Statutes, is created
133to read:
134     627.714  Residential condominium unit owner coverage; loss
135assessment coverage required; excess coverage provision
136required.-For policies issued or renewed on or after July 1,
1372010, coverage under a unit owner's residential property policy
138shall include property loss assessment coverage of at least
139$2,000 for all assessments made as a result of the same direct
140loss to the property, regardless of the number of assessments,
141owned by all members of the association collectively when such
142loss is of the type of loss covered by the unit owner's
143residential property insurance policy, to which a deductible
144shall apply of no more than $250 per direct property loss. If a
145deductible was or will be applied to other property loss
146sustained by the unit owner resulting from the same direct loss
147to the property, no deductible shall apply to the loss
148assessment coverage. Every individual unit owner's residential
149property policy must contain a provision stating that the
150coverage afforded by such policy is excess coverage over the
151amount recoverable under any other policy covering the same
152property.
153     Section 2.  Subsection (13) is added to section 633.0215,
154Florida Statutes, to read:
155     633.0215  Florida Fire Prevention Code.-
156     (13)  A condominium that is less than three stories in
157height and has an exterior means of egress corridor is exempt
158from installing a manual fire alarm system as required in s. 9.6
159of the most recent edition of the Life Safety Code adopted in
160the Florida Fire Prevention Code, or as same may be amended or
161renumbered.
162     Section 3.  Subsection (16) of section 718.103, Florida
163Statutes, is amended to read:
164     718.103  Definitions.-As used in this chapter, the term:
165     (16)  "Developer" means a person who creates a condominium
166or offers condominium parcels for sale or lease in the ordinary
167course of business, but does not include:
168     (a)  An owner or lessee of a condominium or cooperative
169unit who has acquired the unit for his or her own occupancy;,
170nor does it include
171     (b)  A cooperative association which creates a condominium
172by conversion of an existing residential cooperative after
173control of the association has been transferred to the unit
174owners if, following the conversion, the unit owners will be the
175same persons who were unit owners of the cooperative and no
176units are offered for sale or lease to the public as part of the
177plan of conversion;.
178     (c)  A bulk assignee or bulk buyer as defined in s.
179718.703; or
180     (d)  A state, county, or municipal entity is not a
181developer for any purposes under this act when it is acting as a
182lessor and not otherwise named as a developer in the declaration
183of condominium association.
184     Section 4.  Paragraphs (a), (b), (c), (d), (f), (g), (j),
185and (n) of subsection (11) of section 718.111, Florida Statutes,
186are amended to read:
187     718.111  The association.-
188     (11)  INSURANCE.-In order to protect the safety, health,
189and welfare of the people of the State of Florida and to ensure
190consistency in the provision of insurance coverage to
191condominiums and their unit owners, this subsection applies to
192every residential condominium in the state, regardless of the
193date of its declaration of condominium. It is the intent of the
194Legislature to encourage lower or stable insurance premiums for
195associations described in this subsection.
196     (a)  Adequate property hazard insurance, regardless of any
197requirement in the declaration of condominium for coverage by
198the association for full insurable value, replacement cost, or
199similar coverage, shall be based upon the replacement cost of
200the property to be insured as determined by an independent
201insurance appraisal or update of a prior appraisal. The
202replacement cost full insurable value shall be determined at
203least once every 36 months.
204     1.  An association or group of associations may provide
205adequate property hazard insurance through a self-insurance fund
206that complies with the requirements of ss. 624.460-624.488.
207     2.  The association may also provide adequate property
208hazard insurance coverage for a group of no fewer than three
209communities created and operating under this chapter, chapter
210719, chapter 720, or chapter 721 by obtaining and maintaining
211for such communities insurance coverage sufficient to cover an
212amount equal to the probable maximum loss for the communities
213for a 250-year windstorm event. Such probable maximum loss must
214be determined through the use of a competent model that has been
215accepted by the Florida Commission on Hurricane Loss Projection
216Methodology. No policy or program providing such coverage shall
217be issued or renewed after July 1, 2008, unless it has been
218reviewed and approved by the Office of Insurance Regulation. The
219review and approval shall include approval of the policy and
220related forms pursuant to ss. 627.410 and 627.411, approval of
221the rates pursuant to s. 627.062, a determination that the loss
222model approved by the commission was accurately and
223appropriately applied to the insured structures to determine the
224250-year probable maximum loss, and a determination that
225complete and accurate disclosure of all material provisions is
226provided to condominium unit owners prior to execution of the
227agreement by a condominium association.
228     3.  When determining the adequate amount of property hazard
229insurance coverage, the association may consider deductibles as
230determined by this subsection.
231     (b)  If an association is a developer-controlled
232association, the association shall exercise its best efforts to
233obtain and maintain insurance as described in paragraph (a).
234Failure to obtain and maintain adequate property hazard
235insurance during any period of developer control constitutes a
236breach of fiduciary responsibility by the developer-appointed
237members of the board of directors of the association, unless the
238members can show that despite such failure, they have made their
239best efforts to maintain the required coverage.
240     (c)  Policies may include deductibles as determined by the
241board.
242     1.  The deductibles shall be consistent with industry
243standards and prevailing practice for communities of similar
244size and age, and having similar construction and facilities in
245the locale where the condominium property is situated.
246     2.  The deductibles may be based upon available funds,
247including reserve accounts, or predetermined assessment
248authority at the time the insurance is obtained.
249     3.  The board shall establish the amount of deductibles
250based upon the level of available funds and predetermined
251assessment authority at a meeting of the board. Such meeting
252shall be open to all unit owners in the manner set forth in s.
253718.112(2)(e). The notice of such meeting must state the
254proposed deductible and the available funds and the assessment
255authority relied upon by the board and estimate any potential
256assessment amount against each unit, if any. The meeting
257described in this paragraph may be held in conjunction with a
258meeting to consider the proposed budget or an amendment thereto.
259     (d)  An association controlled by unit owners operating as
260a residential condominium shall use its best efforts to obtain
261and maintain adequate property insurance to protect the
262association, the association property, the common elements, and
263the condominium property that is required to be insured by the
264association pursuant to this subsection.
265     (f)  Every property hazard insurance policy issued or
266renewed on or after January 1, 2009, for the purpose of
267protecting the condominium shall provide primary coverage for:
268     1.  All portions of the condominium property as originally
269installed or replacement of like kind and quality, in accordance
270with the original plans and specifications.
271     2.  All alterations or additions made to the condominium
272property or association property pursuant to s. 718.113(2).
273     3.  The coverage shall exclude all personal property within
274the unit or limited common elements, and floor, wall, and
275ceiling coverings, electrical fixtures, appliances, water
276heaters, water filters, built-in cabinets and countertops, and
277window treatments, including curtains, drapes, blinds, hardware,
278and similar window treatment components, or replacements of any
279of the foregoing which are located within the boundaries of the
280unit and serve only such unit. Such property and any insurance
281thereupon shall be the responsibility of the unit owner.
282     (g)  A condominium unit owner's policy shall conform to the
283requirements of s. 627.714. Every hazard insurance policy issued
284or renewed on or after January 1, 2009, to an individual unit
285owner must contain a provision stating that the coverage
286afforded by such policy is excess coverage over the amount
287recoverable under any other policy covering the same property.
288Such policies must include special assessment coverage of no
289less than $2,000 per occurrence. An insurance policy issued to
290an individual unit owner providing such coverage does not
291provide rights of subrogation against the condominium
292association operating the condominium in which such individual's
293unit is located.
294     1.  All improvements or additions to the condominium
295property that benefit fewer than all unit owners shall be
296insured by the unit owner or owners having the use thereof, or
297may be insured by the association at the cost and expense of the
298unit owners having the use thereof.
299     2.  The association shall require each owner to provide
300evidence of a currently effective policy of hazard and liability
301insurance upon request, but not more than once per year. Upon
302the failure of an owner to provide a certificate of insurance
303issued by an insurer approved to write such insurance in this
304state within 30 days after the date on which a written request
305is delivered, the association may purchase a policy of insurance
306on behalf of an owner. The cost of such a policy, together with
307reconstruction costs undertaken by the association but which are
308the responsibility of the unit owner, may be collected in the
309manner provided for the collection of assessments in s. 718.116.
310     1.3.  All reconstruction work after a property casualty
311loss shall be undertaken by the association except as otherwise
312authorized in this section. A unit owner may undertake
313reconstruction work on portions of the unit with the prior
314written consent of the board of administration. However, such
315work may be conditioned upon the approval of the repair methods,
316the qualifications of the proposed contractor, or the contract
317that is used for that purpose. A unit owner shall obtain all
318required governmental permits and approvals prior to commencing
319reconstruction.
320     2.4.  Unit owners are responsible for the cost of
321reconstruction of any portions of the condominium property for
322which the unit owner is required to carry property casualty
323insurance, and any such reconstruction work undertaken by the
324association shall be chargeable to the unit owner and
325enforceable as an assessment pursuant to s. 718.116. The
326association must be an additional named insured and loss payee
327on all casualty insurance policies issued to unit owners in the
328condominium operated by the association.
329     3.5.  A multicondominium association may elect, by a
330majority vote of the collective members of the condominiums
331operated by the association, to operate such condominiums as a
332single condominium for purposes of insurance matters, including,
333but not limited to, the purchase of the property hazard
334insurance required by this section and the apportionment of
335deductibles and damages in excess of coverage. The election to
336aggregate the treatment of insurance premiums, deductibles, and
337excess damages constitutes an amendment to the declaration of
338all condominiums operated by the association, and the costs of
339insurance shall be stated in the association budget. The
340amendments shall be recorded as required by s. 718.110.
341     (j)  Any portion of the condominium property required to be
342insured by the association against property casualty loss
343pursuant to paragraph (f) which is damaged by casualty shall be
344reconstructed, repaired, or replaced as necessary by the
345association as a common expense. All property hazard insurance
346deductibles, uninsured losses, and other damages in excess of
347property hazard insurance coverage under the property hazard
348insurance policies maintained by the association are a common
349expense of the condominium, except that:
350     1.  A unit owner is responsible for the costs of repair or
351replacement of any portion of the condominium property not paid
352by insurance proceeds, if such damage is caused by intentional
353conduct, negligence, or failure to comply with the terms of the
354declaration or the rules of the association by a unit owner, the
355members of his or her family, unit occupants, tenants, guests,
356or invitees, without compromise of the subrogation rights of any
357insurer as set forth in paragraph (g).
358     2.  The provisions of subparagraph 1. regarding the
359financial responsibility of a unit owner for the costs of
360repairing or replacing other portions of the condominium
361property also apply to the costs of repair or replacement of
362personal property of other unit owners or the association, as
363well as other property, whether real or personal, which the unit
364owners are required to insure under paragraph (g).
365     3.  To the extent the cost of repair or reconstruction for
366which the unit owner is responsible under this paragraph is
367reimbursed to the association by insurance proceeds, and, to the
368extent the association has collected the cost of such repair or
369reconstruction from the unit owner, the association shall
370reimburse the unit owner without the waiver of any rights of
371subrogation.
372     4.  The association is not obligated to pay for
373reconstruction or repairs of property casualty losses as a
374common expense if the property casualty losses were known or
375should have been known to a unit owner and were not reported to
376the association until after the insurance claim of the
377association for that property casualty was settled or resolved
378with finality, or denied on the basis that it was untimely
379filed.
380     (n)  The association is not obligated to pay for any
381reconstruction or repair expenses due to property casualty loss
382to any improvements installed by a current or former owner of
383the unit or by the developer if the improvement benefits only
384the unit for which it was installed and is not part of the
385standard improvements installed by the developer on all units as
386part of original construction, whether or not such improvement
387is located within the unit. This paragraph does not relieve any
388party of its obligations regarding recovery due under any
389insurance implemented specifically for any such improvements.
390     Section 5.  Paragraphs (b), (d), (l), and (n) of subsection
391(2) of section 718.112, Florida Statutes, are amended to read:
392     718.112  Bylaws.-
393     (2)  REQUIRED PROVISIONS.-The bylaws shall provide for the
394following and, if they do not do so, shall be deemed to include
395the following:
396     (b)  Quorum; voting requirements; proxies.-
397     1.  Unless a lower number is provided in the bylaws, the
398percentage of voting interests required to constitute a quorum
399at a meeting of the members shall be a majority of the voting
400interests. Unless otherwise provided in this chapter or in the
401declaration, articles of incorporation, or bylaws, and except as
402provided in sub-subparagraph subparagraph (d)3.a., decisions
403shall be made by owners of a majority of the voting interests
404represented at a meeting at which a quorum is present.
405     2.  Except as specifically otherwise provided herein, after
406January 1, 1992, unit owners may not vote by general proxy, but
407may vote by limited proxies substantially conforming to a
408limited proxy form adopted by the division. No voting interest
409or consent right allocated to a unit owned by the association
410shall be exercised or considered for any purpose, whether for a
411quorum, an election, or otherwise. Limited proxies and general
412proxies may be used to establish a quorum. Limited proxies shall
413be used for votes taken to waive or reduce reserves in
414accordance with subparagraph (f)2.; for votes taken to waive the
415financial reporting requirements of s. 718.111(13); for votes
416taken to amend the declaration pursuant to s. 718.110; for votes
417taken to amend the articles of incorporation or bylaws pursuant
418to this section; and for any other matter for which this chapter
419requires or permits a vote of the unit owners. Except as
420provided in paragraph (d), after January 1, 1992, no proxy,
421limited or general, shall be used in the election of board
422members. General proxies may be used for other matters for which
423limited proxies are not required, and may also be used in voting
424for nonsubstantive changes to items for which a limited proxy is
425required and given. Notwithstanding the provisions of this
426subparagraph, unit owners may vote in person at unit owner
427meetings. Nothing contained herein shall limit the use of
428general proxies or require the use of limited proxies for any
429agenda item or election at any meeting of a timeshare
430condominium association.
431     3.  Any proxy given shall be effective only for the
432specific meeting for which originally given and any lawfully
433adjourned meetings thereof. In no event shall any proxy be valid
434for a period longer than 90 days after the date of the first
435meeting for which it was given. Every proxy is revocable at any
436time at the pleasure of the unit owner executing it.
437     4.  A member of the board of administration or a committee
438may submit in writing his or her agreement or disagreement with
439any action taken at a meeting that the member did not attend.
440This agreement or disagreement may not be used as a vote for or
441against the action taken and may not be used for the purposes of
442creating a quorum.
443     5.  When any of the board or committee members meet by
444telephone conference, those board or committee members attending
445by telephone conference may be counted toward obtaining a quorum
446and may vote by telephone. A telephone speaker must be used so
447that the conversation of those board or committee members
448attending by telephone may be heard by the board or committee
449members attending in person as well as by any unit owners
450present at a meeting.
451     (d)  Unit owner meetings.-
452     1.  There shall be an annual meeting of the unit owners
453held at the location provided in the association bylaws and, if
454the bylaws are silent as to the location, the meeting shall be
455held within 45 miles of the condominium property. However, such
456distance requirement does not apply to an association governing
457a timeshare condominium. Unless the bylaws provide otherwise, a
458vacancy on the board caused by the expiration of a director's
459term shall be filled by electing a new board member, and the
460election shall be by secret ballot; however, if the number of
461vacancies equals or exceeds the number of candidates, no
462election is required. Except in a timeshare condominium, the
463terms of all members of the board shall expire at the annual
464meeting and such board members may stand for reelection unless
465otherwise permitted by the bylaws. In the event that the
466governing documents bylaws permit staggered terms of no more
467than 2 years and upon approval of a majority of the total voting
468interests, the association board members may serve 2-year
469staggered terms. If the number no person is interested in or
470demonstrates an intention to run for the position of a board
471members member whose terms have term has expired according to
472the provisions of this subparagraph exceeds the number of
473eligible members showing interest in or demonstrating an
474intention to run for the vacant positions, each such board
475member whose term has expired shall become eligible for
476reappointment be automatically reappointed to the board of
477administration and need not stand for reelection. In a
478condominium association of more than 10 units or in a
479condominium association that does not include timeshare units,
480coowners of a unit may not serve as members of the board of
481directors at the same time unless they own more than one unit
482and are not co-occupants of a unit. Any unit owner desiring to
483be a candidate for board membership must shall comply with sub-
484subparagraph subparagraph 3.a. A person who has been suspended
485or removed by the division under this chapter, or who is
486delinquent in the payment of any fee, fine, or special or
487regular assessment as provided in paragraph (n), is not eligible
488for board membership. A person who has been convicted of any
489felony in this state or in a United States District or
490Territorial Court, or who has been convicted of any offense in
491another jurisdiction that would be considered a felony if
492committed in this state, is not eligible for board membership
493unless such felon's civil rights have been restored for a period
494of no less than 5 years as of the date on which such person
495seeks election to the board. The validity of an action by the
496board is not affected if it is later determined that a member of
497the board is ineligible for board membership due to having been
498convicted of a felony.
499     2.  The bylaws shall provide the method of calling meetings
500of unit owners, including annual meetings. Written notice, which
501notice must include an agenda, shall be mailed, hand delivered,
502or electronically transmitted to each unit owner at least 14
503days prior to the annual meeting and shall be posted in a
504conspicuous place on the condominium property at least 14
505continuous days preceding the annual meeting. Upon notice to the
506unit owners, the board shall by duly adopted rule designate a
507specific location on the condominium property or association
508property upon which all notices of unit owner meetings shall be
509posted; however, if there is no condominium property or
510association property upon which notices can be posted, this
511requirement does not apply. In lieu of or in addition to the
512physical posting of notice of any meeting of the unit owners on
513the condominium property, the association may, by reasonable
514rule, adopt a procedure for conspicuously posting and repeatedly
515broadcasting the notice and the agenda on a closed-circuit cable
516television system serving the condominium association. However,
517if broadcast notice is used in lieu of a notice posted
518physically on the condominium property, the notice and agenda
519must be broadcast at least four times every broadcast hour of
520each day that a posted notice is otherwise required under this
521section. When broadcast notice is provided, the notice and
522agenda must be broadcast in a manner and for a sufficient
523continuous length of time so as to allow an average reader to
524observe the notice and read and comprehend the entire content of
525the notice and the agenda. Unless a unit owner waives in writing
526the right to receive notice of the annual meeting, such notice
527shall be hand delivered, mailed, or electronically transmitted
528to each unit owner. Notice for meetings and notice for all other
529purposes shall be mailed to each unit owner at the address last
530furnished to the association by the unit owner, or hand
531delivered to each unit owner. However, if a unit is owned by
532more than one person, the association shall provide notice, for
533meetings and all other purposes, to that one address which the
534developer initially identifies for that purpose and thereafter
535as one or more of the owners of the unit shall so advise the
536association in writing, or if no address is given or the owners
537of the unit do not agree, to the address provided on the deed of
538record. An officer of the association, or the manager or other
539person providing notice of the association meeting, shall
540provide an affidavit or United States Postal Service certificate
541of mailing, to be included in the official records of the
542association affirming that the notice was mailed or hand
543delivered, in accordance with this provision.
544     3.a.  The members of the board shall be elected by written
545ballot or voting machine. Proxies shall in no event be used in
546electing the board, either in general elections or elections to
547fill vacancies caused by recall, resignation, or otherwise,
548unless otherwise provided in this chapter. Not less than 60 days
549before a scheduled election, the association shall mail,
550deliver, or electronically transmit, whether by separate
551association mailing or included in another association mailing,
552delivery, or transmission, including regularly published
553newsletters, to each unit owner entitled to a vote, a first
554notice of the date of the election along with a certification
555form provided by the division attesting that he or she has read
556and understands, to the best of his or her ability, the
557governing documents of the association and the provisions of
558this chapter and any applicable rules. Any unit owner or other
559eligible person desiring to be a candidate for the board must
560give written notice of intent to be a candidate to the
561association not less than 40 days before a scheduled election.
562Together with the written notice and agenda as set forth in
563subparagraph 2., the association shall mail, deliver, or
564electronically transmit a second notice of the election to all
565unit owners entitled to vote therein, together with a ballot
566which shall list all candidates. Upon request of a candidate,
567the association shall include an information sheet, no larger
568than 8 1/2 inches by 11 inches, which must be furnished by the
569candidate not less than 35 days before the election, shall along
570with the signed certification form provided for in this
571subparagraph, to be included with the mailing, delivery, or
572transmission of the ballot, with the costs of mailing, delivery,
573or electronic transmission and copying to be borne by the
574association. The association is not liable for the contents of
575the information sheets prepared by the candidates. In order to
576reduce costs, the association may print or duplicate the
577information sheets on both sides of the paper. The division
578shall by rule establish voting procedures consistent with the
579provisions contained herein, including rules establishing
580procedures for giving notice by electronic transmission and
581rules providing for the secrecy of ballots. Elections shall be
582decided by a plurality of those ballots cast. There shall be no
583quorum requirement; however, at least 20 percent of the eligible
584voters must cast a ballot in order to have a valid election of
585members of the board. No unit owner shall permit any other
586person to vote his or her ballot, and any such ballots
587improperly cast shall be deemed invalid, provided any unit owner
588who violates this provision may be fined by the association in
589accordance with s. 718.303. A unit owner who needs assistance in
590casting the ballot for the reasons stated in s. 101.051 may
591obtain assistance in casting the ballot. The regular election
592shall occur on the date of the annual meeting. The provisions of
593this sub-subparagraph subparagraph shall not apply to timeshare
594condominium associations. Notwithstanding the provisions of this
595sub-subparagraph subparagraph, an election is not required
596unless more candidates file notices of intent to run or are
597nominated than board vacancies exist.
598     b.  Within 90 days after being elected to the board, each
599newly elected director shall certify in writing to the secretary
600of the association that he or she has read the association's
601declarations of covenants and restrictions, articles of
602incorporation, bylaws, and current written policies; that he or
603she will work to uphold such documents and policies to the best
604of his or her ability; and that he or she will faithfully
605discharge his or her fiduciary responsibility to the
606association's members. In lieu of this written certification,
607the newly elected director may submit a certificate of
608satisfactory completion of the educational curriculum
609administered by a division-approved condominium education
610provider. Failure to timely file the written certification or
611educational certificate automatically disqualifies the director
612from service on the board. Notwithstanding the foregoing, a
613director shall not be automatically removed from the board if
614the director's failure to provide the completed education
615certificate results from a failure of the education provider to
616timely provide it. The secretary shall cause the association to
617retain a director's written certification or educational
618certificate for inspection by the members for 5 years after a
619director's election. Failure to have such written certification
620or educational certificate on file does not affect the validity
621of any appropriate action.
622     4.  Any approval by unit owners called for by this chapter
623or the applicable declaration or bylaws, including, but not
624limited to, the approval requirement in s. 718.111(8), shall be
625made at a duly noticed meeting of unit owners and shall be
626subject to all requirements of this chapter or the applicable
627condominium documents relating to unit owner decisionmaking,
628except that unit owners may take action by written agreement,
629without meetings, on matters for which action by written
630agreement without meetings is expressly allowed by the
631applicable bylaws or declaration or any statute that provides
632for such action.
633     5.  Unit owners may waive notice of specific meetings if
634allowed by the applicable bylaws or declaration or any statute.
635If authorized by the bylaws, notice of meetings of the board of
636administration, unit owner meetings, except unit owner meetings
637called to recall board members under paragraph (j), and
638committee meetings may be given by electronic transmission to
639unit owners who consent to receive notice by electronic
640transmission.
641     6.  Unit owners shall have the right to participate in
642meetings of unit owners with reference to all designated agenda
643items. However, the association may adopt reasonable rules
644governing the frequency, duration, and manner of unit owner
645participation.
646     7.  Any unit owner may tape record or videotape a meeting
647of the unit owners subject to reasonable rules adopted by the
648division.
649     8.  Unless otherwise provided in the bylaws, any vacancy
650occurring on the board before the expiration of a term may be
651filled by the affirmative vote of the majority of the remaining
652directors, even if the remaining directors constitute less than
653a quorum, or by the sole remaining director. In the alternative,
654a board may hold an election to fill the vacancy, in which case
655the election procedures must conform to the requirements of sub-
656subparagraph subparagraph 3.a. unless the association governs 10
657units or fewer less and has opted out of the statutory election
658process, in which case the bylaws of the association control.
659Unless otherwise provided in the bylaws, a board member
660appointed or elected under this section shall fill the vacancy
661for the unexpired term of the seat being filled. Filling
662vacancies created by recall is governed by paragraph (j) and
663rules adopted by the division.
664
665Notwithstanding subparagraph subparagraphs (b)2. and sub-
666subparagraph (d)3.a., an association of 10 or fewer units may,
667by the affirmative vote of a majority of the total voting
668interests, provide for different voting and election procedures
669in its bylaws, which vote may be by a proxy specifically
670delineating the different voting and election procedures. The
671different voting and election procedures may provide for
672elections to be conducted by limited or general proxy.
673     (l)  Certificate of compliance.-There shall be a provision
674that a certificate of compliance from a licensed electrical
675contractor or electrician may be accepted by the association's
676board as evidence of compliance of the condominium units with
677the applicable fire and life safety code. Notwithstanding the
678provisions of chapter 633 or of any other code, statute,
679ordinance, administrative rule, or regulation, or any
680interpretation of the foregoing, an association, condominium, or
681unit owner is not obligated to retrofit the common elements,
682common areas, association-owned property, or units of a
683residential condominium with a fire sprinkler system or any
684other form of engineered lifesafety system in a building that
685has been certified for occupancy by the applicable governmental
686entity, if the unit owners have voted to forego such
687retrofitting and engineered lifesafety system by the affirmative
688vote of two-thirds of all voting interests in the affected
689condominium. However, a condominium association may not vote to
690forego the retrofitting with a fire sprinkler system of common
691areas in a high-rise building. For purposes of this subsection,
692the term "high-rise building" means a building that is greater
693than 75 feet in height where the building height is measured
694from the lowest level of fire department access to the floor of
695the highest occupiable story. For purposes of this subsection,
696the term "common areas" means any enclosed hallway, corridor,
697lobby, stairwell, or entryway. In no event shall the local
698authority having jurisdiction require completion of retrofitting
699of common areas with a sprinkler system or any other form of
700engineered lifesafety system before the end of 2019 2014.
701     1.  A vote to forego retrofitting may be obtained by
702limited proxy or by a ballot personally cast at a duly called
703membership meeting, or by execution of a written consent by the
704member, and shall be effective upon the recording of a
705certificate attesting to such vote in the public records of the
706county where the condominium is located. The association shall
707mail or, hand deliver, or electronically transmit to each unit
708owner written notice at least 14 days prior to such membership
709meeting in which the vote to forego retrofitting of the required
710fire sprinkler system or any other form of engineered lifesafety
711system is to take place. Within 30 days after the association's
712opt-out vote, notice of the results of the opt-out vote shall be
713mailed or, hand delivered, or electronically transmitted to all
714unit owners. Evidence of compliance with this 30-day notice
715shall be made by an affidavit executed by the person providing
716the notice and filed among the official records of the
717association. After such notice is provided to each owner, a copy
718of such notice shall be provided by the current owner to a new
719owner prior to closing and shall be provided by a unit owner to
720a renter prior to signing a lease.
721     2.  If there has been a previous vote approving the
722association to forego retrofitting, a vote to require
723retrofitting may be obtained at a special meeting of the unit
724owners called by a petition of least 10 percent of the voting
725interests. Such a vote may only be called for once every 3
726years. Notice shall be provided as required for any regularly
727called meeting of the unit owners, and the notice shall state
728the purpose of the meeting. Electronic transmission may not be
729used as a method of giving notice of a meeting called in whole
730or in part for this purpose.
731     3.2.  As part of the information collected annually from
732condominiums, the division shall require condominium
733associations to report the membership vote and recording of a
734certificate under this subsection and, if retrofitting has been
735undertaken, the per-unit cost of such work. The division shall
736annually report to the Division of State Fire Marshal of the
737Department of Financial Services the number of condominiums that
738have elected to forego retrofitting.
739     (n)  Director or officer delinquencies.-A director or
740officer more than 90 days delinquent in the payment of any fee,
741fine, or regular or special assessments shall be deemed to have
742abandoned the office, creating a vacancy in the office to be
743filled according to law.
744     Section 6.  Paragraph (d) of subsection (1) of section
745718.115, Florida Statutes, is amended to read:
746     718.115  Common expenses and common surplus.-
747     (1)
748     (d)  If the association is authorized pursuant to so
749provided in the declaration to enter into a bulk contract for
750communications services as defined in chapter 202, information
751services, or Internet services, the costs charged for such
752services, the cost of a master antenna television system or duly
753franchised cable television service obtained pursuant to a bulk
754contract shall be deemed a common expense. If the declaration
755does not authorize the association to enter into a bulk contract
756for provide for the cost of communications services as defined
757in chapter 202, information services, or Internet services a
758master antenna television system or duly franchised cable
759television service obtained under a bulk contract as a common
760expense, the board may enter into such a contract for such
761services., and The cost of the services under a bulk contract
762service will be a common expense but allocated on a per-unit
763basis rather than a percentage basis if the declaration provides
764for other than an equal sharing of common expenses, and any
765contract entered into before July 1, 1998, in which the cost of
766the service is not equally divided among all unit owners, may be
767changed by vote of a majority of the voting interests present at
768a regular or special meeting of the association, to allocate the
769cost equally among all units. The contract shall be for a term
770of not less than 2 years.
771     1.  Any contract made by the board after the effective date
772hereof for communications services as defined in chapter 202,
773information services, or Internet services a community antenna
774system or duly franchised cable television service may be
775canceled by a majority of the voting interests present at the
776next regular or special meeting of the association. Any member
777may make a motion to cancel the said contract, but if no motion
778is made or if such motion fails to obtain the required majority
779at the next regular or special meeting, whichever occurs is
780sooner, following the making of the contract, then such contract
781shall be deemed ratified for the term therein expressed. Any
782contract made by the association prior to assumption of control
783of the association by unit owners other than the developer may
784be canceled within 120 days after unit owners other than the
785developer elect a majority of the board of directors consistent
786with the provisions of s. 718.302(1).
787     2.  Any such contract shall provide, and shall be deemed to
788provide if not expressly set forth, that any hearing-impaired or
789legally blind unit owner who does not occupy the unit with a
790non-hearing-impaired or sighted person, or any unit owner
791receiving supplemental security income under Title XVI of the
792Social Security Act or food stamps as administered by the
793Department of Children and Family Services pursuant to s.
794414.31, may discontinue the cable or video service without
795incurring disconnect fees, penalties, or subsequent service
796charges, and, as to such units, the owners shall not be required
797to pay any common expenses charge related to such service. If
798less than all members of an association share the expenses of
799cable or video service television, the expense shall be shared
800equally by all participating unit owners. The association may
801use the provisions of s. 718.116 to enforce payment of the
802shares of such costs by the unit owners receiving cable or video
803service television.
804     Section 7.  Subsection (1) of section 718.301, Florida
805Statutes, is amended to read:
806     718.301  Transfer of association control; claims of defect
807by association.-
808     (1)  When unit owners other than the developer own 15
809percent or more of the units in a condominium that will be
810operated ultimately by an association, the unit owners other
811than the developer shall be entitled to elect no less than one-
812third of the members of the board of administration of the
813association. Unit owners other than the developer are entitled
814to elect not less than a majority of the members of the board of
815administration of an association:
816     (a)  Three years after 50 percent of the units that will be
817operated ultimately by the association have been conveyed to
818purchasers;
819     (b)  Three months after 90 percent of the units that will
820be operated ultimately by the association have been conveyed to
821purchasers;
822     (c)  When all the units that will be operated ultimately by
823the association have been completed, some of them have been
824conveyed to purchasers, and none of the others are being offered
825for sale by the developer in the ordinary course of business;
826     (d)  When some of the units have been conveyed to
827purchasers and none of the others are being constructed or
828offered for sale by the developer in the ordinary course of
829business;
830     (e)  When the developer files a petition seeking protection
831in bankruptcy;
832     (f)  When a receiver for the developer is appointed by a
833circuit court and is not discharged within 30 days after such
834appointment, unless the court determines within 30 days after
835appointment of the receiver that transfer of control would be
836detrimental to the association or its members; or
837     (g)  Seven years after recordation of the declaration of
838condominium; or, in the case of an association which may
839ultimately operate more than one condominium, 7 years after
840recordation of the declaration for the first condominium it
841operates; or, in the case of an association operating a phase
842condominium created pursuant to s. 718.403, 7 years after
843recordation of the declaration creating the initial phase,
844
845whichever occurs first. The developer is entitled to elect at
846least one member of the board of administration of an
847association as long as the developer holds for sale in the
848ordinary course of business at least 5 percent, in condominiums
849with fewer than 500 units, and 2 percent, in condominiums with
850more than 500 units, of the units in a condominium operated by
851the association. Following the time the developer relinquishes
852control of the association, the developer may exercise the right
853to vote any developer-owned units in the same manner as any
854other unit owner except for purposes of reacquiring control of
855the association or selecting the majority members of the board
856of administration.
857     Section 8.  Part VII of chapter 718, Florida Statutes,
858consisting of sections 718.701, 718.702, 718.703, 718.704,
859718.705, 718.706, 718.707, and 718.708, is created to read:
860
PART VII
861
DISTRESSED CONDOMINIUM RELIEF
862     718.701  Short title.-This part may be cited as the
863"Distressed Condominium Relief Act."
864     718.702  Legislative intent.-
865     (1)  The Legislature acknowledges the massive downturn in
866the condominium market which has transpired throughout the state
867and the impact of such downturn on developers, lenders, unit
868owners, and condominium associations. Numerous condominium
869projects have either failed or are in the process of failing,
870whereby the condominium has a small percentage of third-party
871unit owners as compared to the unsold inventory of units. As a
872result of the inability to find purchasers for this inventory of
873units, which results in part from the devaluing of real estate
874in this state, developers are unable to satisfy the requirements
875of their lenders, leading to defaults on mortgages.
876Consequently, lenders are faced with the task of finding a
877solution to the problem in order to be paid for their
878investments.
879     (2)  The Legislature recognizes that all of the factors
880listed in this section lead to condominiums becoming distressed,
881resulting in detriment to the unit owners and the condominium
882association on account of the resulting shortage of assessment
883moneys available to support the financial requirements for
884proper maintenance of the condominium. Such shortage and the
885resulting lack of proper maintenance further erode property
886values. The Legislature finds that individuals and entities
887within Florida and in other states have expressed interest in
888purchasing unsold inventory in one or more condominium projects,
889but are reticent to do so because of accompanying liabilities
890inherited from the original developer, which are by definition
891imputed to the successor purchaser, including a foreclosing
892mortgagee. This results in the potential purchaser having
893unknown and unquantifiable risks, and potential successor
894purchasers are unwilling to accept such risks. The result is
895that condominium projects stagnate, leaving all parties involved
896at an impasse without the ability to find a solution.
897     (3)  The Legislature finds and declares that it is the
898public policy of this state to protect the interests of
899developers, lenders, unit owners, and condominium associations
900with regard to distressed condominiums, and that there is a need
901for relief from certain provisions of the Florida Condominium
902Act geared toward enabling economic opportunities within these
903condominiums for successor purchasers, including foreclosing
904mortgagees. Such relief would benefit existing unit owners and
905condominium associations. The Legislature further finds and
906declares that this situation cannot be open-ended without
907potentially prejudicing the rights of unit owners and
908condominium associations, and thereby declares that the
909provisions of this part shall be used by purchasers of
910condominium inventory for a specific and defined period.
911     718.703  Definitions.-As used in this part, the term:
912     (1)  "Bulk assignee" means a person who:
913     (a)  Acquires more than seven condominium parcels as set
914forth in s. 718.707; and
915     (b)  Receives an assignment of some or all of the rights of
916the developer as are set forth in the declaration of condominium
917or in this chapter by a written instrument recorded as an
918exhibit to the deed or as a separate instrument in the public
919records of the county in which the condominium is located.
920     (2)  "Bulk buyer" means a person who acquires more than
921seven condominium parcels as set forth in s. 718.707 but who
922does not receive an assignment of any developer rights other
923than the right to conduct sales, leasing, and marketing
924activities within the condominium.
925     718.704  Assignment of developer rights to and assumption
926of developer rights by bulk assignee; bulk buyer.-
927     (1)  A bulk assignee shall be deemed to have assumed and is
928liable for all duties and responsibilities of the developer
929under the declaration and this chapter, except:
930     (a)  Warranties of the developer under s. 718.203(1) or s.
931718.618, except for design, construction, development, or repair
932work performed by or on behalf of such bulk assignee.
933     (b)  The obligation to:
934     1.  Fund converter reserves under s. 718.618 for a unit
935which was not acquired by the bulk assignee; or
936     2.  Provide converter warranties on any portion of the
937condominium property except as may be expressly provided by the
938bulk assignee in the contract for purchase and sale executed
939with a purchaser and pertaining to any design, construction,
940development, or repair work performed by or on behalf of the
941bulk assignee.
942     (c)  The requirement to provide the association with a
943cumulative audit of the association's finances from the date of
944formation of the condominium association as required by s.
945718.301. However, the bulk assignee shall provide an audit for
946the period for which the bulk assignee elects a majority of the
947members of the board of administration.
948     (d)  Any liability arising out of or in connection with
949actions taken by the board of administration or the developer-
950appointed directors before the bulk assignee elects a majority
951of the members of the board of administration.
952     (e)  Any liability for or arising out of the developer's
953failure to fund previous assessments or to resolve budgetary
954deficits in relation to a developer's right to guarantee
955assessments, except as otherwise provided in subsection (2).
956
957Further, the bulk assignee is responsible for delivering
958documents and materials in accordance with s. 718.705(3). A bulk
959assignee may expressly assume some or all of the obligations of
960the developer described in paragraphs (a)-(e).
961     (2)  A bulk assignee receiving the assignment of the rights
962of the developer to guarantee the level of assessments and fund
963budgetary deficits pursuant to s. 718.116 shall be deemed to
964have assumed and is liable for all obligations of the developer
965with respect to such guarantee, including any applicable funding
966of reserves to the extent required by law, for as long as the
967guarantee remains in effect. A bulk assignee not receiving an
968assignment of the right of the developer to guarantee the level
969of assessments and fund budgetary deficits pursuant to s.
970718.116 or a bulk buyer is not deemed to have assumed and is not
971liable for the obligations of the developer with respect to such
972guarantee, but is responsible for payment of assessments in the
973same manner as all other owners of condominium parcels.
974     (3)  A bulk buyer is liable for the duties and
975responsibilities of the developer under the declaration and this
976chapter only to the extent provided in this part, together with
977any other duties or responsibilities of the developer expressly
978assumed in writing by the bulk buyer.
979     (4)  An acquirer of condominium parcels is not considered a
980bulk assignee or a bulk buyer if the transfer to such acquirer
981was made with the intent to hinder, delay, or defraud any
982purchaser, unit owner, or the association, or if the acquirer is
983a person who would constitute an insider under s. 726.102(7).
984     (5)  An assignment of developer rights to a bulk assignee
985may be made by the developer, a previous bulk assignee, or a
986court of competent jurisdiction acting on behalf of the
987developer or the previous bulk assignee. At any particular time,
988there may be no more than one bulk assignee within a
989condominium, but there may be more than one bulk buyer. If more
990than one acquirer of condominium parcels receives an assignment
991of developer rights from the same person, the bulk assignee is
992the acquirer whose instrument of assignment is recorded first in
993applicable public records.
994     718.705  Board of administration; transfer of control.-
995     (1)  For purposes of determining the timing for transfer of
996control of the board of administration of the association to
997unit owners other than the developer under s. 718.301(1)(a) or
998(b), if a bulk assignee is entitled to elect a majority of the
999members of the board, a condominium parcel acquired by the bulk
1000assignee shall not be deemed to be conveyed to a purchaser, or
1001to be owned by an owner other than the developer, until such
1002condominium parcel is conveyed to an owner who is not a bulk
1003assignee.
1004     (2)  Unless control of the board of administration of the
1005association has already been relinquished pursuant to s.
1006718.301(1), the bulk assignee is obligated to relinquish control
1007of the association in accordance with s. 718.301 and this part.
1008     (3)  When a bulk assignee relinquishes control of the board
1009of administration as set forth in s. 718.301, the bulk assignee
1010shall deliver all of those items required by s. 718.301(4).
1011However, the bulk assignee is not required to deliver items and
1012documents not in the possession of the bulk assignee during the
1013period during which the bulk assignee was the owner of
1014condominium parcels. In conjunction with the acquisition of
1015condominium parcels, a bulk assignee shall undertake a good
1016faith effort to obtain the documents and materials required to
1017be provided to the association pursuant to s. 718.301(4). To the
1018extent the bulk assignee is not able to obtain all of such
1019documents and materials, the bulk assignee shall certify in
1020writing to the association the names or descriptions of the
1021documents and materials that were not obtainable by the bulk
1022assignee. Delivery of the certificate relieves the bulk assignee
1023of responsibility for the delivery of the documents and
1024materials referenced in the certificate as otherwise required
1025under ss. 718.112 and 718.301 and this part. The responsibility
1026of the bulk assignee for the audit required by s. 718.301(4)
1027shall commence as of the date on which the bulk assignee elected
1028a majority of the members of the board of administration.
1029     (4)  If a conflict arises between the provisions or
1030application of this section and s. 718.301, this section shall
1031prevail.
1032     (5)  Failure of a bulk assignee or bulk buyer to comply
1033with all the requirements contained in this part shall result in
1034the loss of any and all protections or exemptions provided under
1035this part.
1036     718.706  Specific provisions pertaining to offering of
1037units by a bulk assignee or bulk buyer.-
1038     (1)  Before offering any units for sale or for lease for a
1039term exceeding 5 years, a bulk assignee or bulk buyer must file
1040the following documents with the division and provide such
1041documents to a prospective purchaser:
1042     (a)  An updated prospectus or offering circular, or a
1043supplement to the prospectus or offering circular, filed by the
1044creating developer prepared in accordance with s. 718.504, which
1045shall include the form of contract for purchase and sale in
1046compliance with s. 718.503(2).
1047     (b)  An updated Frequently Asked Questions and Answers
1048sheet.
1049     (c)  The executed escrow agreement if required under s.
1050718.202.
1051     (d)  The financial information required by s. 718.111(13).
1052However, if a financial information report does not exist for
1053the fiscal year before acquisition of title by the bulk assignee
1054or bulk buyer, or accounting records cannot be obtained in good
1055faith by the bulk assignee or bulk buyer which would permit
1056preparation of the required financial information report, the
1057bulk assignee or bulk buyer is excused from the requirement of
1058this paragraph. However, the bulk assignee or bulk buyer must
1059include in the purchase contract the following statement in
1060conspicuous type:
1061
1062     THE FINANCIAL INFORMATION REPORT REQUIRED UNDER
1063SECTION 718.111(13), FLORIDA STATUTES, FOR THE
1064IMMEDIATELY PRECEDING FISCAL YEAR OF THE ASSOCIATION
1065IS NOT AVAILABLE OR CANNOT BE CREATED BY THE SELLER AS
1066A RESULT OF INSUFFICIENT ACCOUNTING RECORDS OF THE
1067ASSOCIATION.
1068
1069     (2)  Before offering any units for sale or for lease for a
1070term exceeding 5 years, a bulk assignee must file with the
1071division and provide to a prospective purchaser a disclosure
1072statement that must include, but is not limited to:
1073     (a)  A description to the purchaser of any rights of the
1074developer which have been assigned to the bulk assignee.
1075     (b)  The following statement in conspicuous type:
1076
1077     SELLER IS NOT OBLIGATED FOR ANY WARRANTIES OF THE
1078DEVELOPER UNDER SECTION 718.203(1) OR SECTION 718.618,
1079FLORIDA STATUTES, AS APPLICABLE, EXCEPT FOR DESIGN,
1080CONSTRUCTION, DEVELOPMENT, OR REPAIR WORK PERFORMED BY
1081OR ON BEHALF OF SELLER.
1082
1083     (c)  If the condominium is a conversion subject to part VI,
1084the following statement in conspicuous type:
1085
1086     SELLER HAS NO OBLIGATION TO FUND CONVERTER
1087RESERVES OR TO PROVIDE CONVERTER WARRANTIES UNDER
1088SECTION 718.618, FLORIDA STATUTES, ON ANY PORTION OF
1089THE CONDOMINIUM PROPERTY EXCEPT AS MAY BE EXPRESSLY
1090REQUIRED OF THE SELLER IN THE CONTRACT FOR PURCHASE
1091AND SALE EXECUTED BY THE SELLER AND THE PREVIOUS
1092DEVELOPER AND PERTAINING TO ANY DESIGN, CONSTRUCTION,
1093DEVELOPMENT, OR REPAIR WORK PERFORMED BY OR ON BEHALF
1094OF THE SELLER.
1095
1096     (3)  In addition to the requirements set forth in
1097subsection (1), a bulk assignee or bulk buyer must comply with
1098the nondeveloper disclosure requirements set forth in s.
1099718.503(2) before offering any units for sale or for lease for a
1100term exceeding 5 years.
1101     (4)  A bulk assignee, while in control of the board of
1102administration of the association, may not authorize, on behalf
1103of the association:
1104     (a)  The waiver of reserves or the reduction of funding of
1105the reserves in accordance with s. 718.112(2)(f)2., unless
1106approved by a majority of the voting interests not controlled by
1107the developer, bulk assignee, or bulk buyer; or
1108     (b)  The use of reserve expenditures for other purposes in
1109accordance with s. 718.112(2)(f)3., unless approved by a
1110majority of the voting interests not controlled by the
1111developer, bulk assignee, or bulk buyer.
1112     (5)  A bulk assignee, while in control of the board of
1113administration of the association, must comply with the
1114requirements imposed upon developers to transfer control of the
1115association to the unit owners in accordance with s. 718.301.
1116     (6)  A bulk assignee or bulk buyer must comply with all the
1117requirements of s. 718.302 regarding any contracts entered into
1118by the association during the period the bulk assignee or bulk
1119buyer maintains control of the board of administration. Unit
1120owners shall be afforded all the protections contained in s.
1121718.302 regarding agreements entered into by the association
1122before unit owners other than the developer, bulk assignee, or
1123bulk buyer elected a majority of the board of administration.
1124     (7)  A bulk buyer must comply with the requirements
1125contained in the declaration regarding any transfer of a unit,
1126including sales, leases, and subleases. A bulk buyer is not
1127entitled to any exemptions afforded a developer or successor
1128developer under this chapter regarding any transfer of a unit,
1129including sales, leases, or subleases.
1130     718.707  Time limitation for classification as bulk
1131assignee or bulk buyer.-A person acquiring condominium parcels
1132may not be classified as a bulk assignee or bulk buyer unless
1133the condominium parcels were acquired before July 1, 2011. The
1134date of such acquisition shall be determined by the date of
1135recording of a deed or other instrument of conveyance for such
1136parcels in the public records of the county in which the
1137condominium is located or by the date of issuance of a
1138certificate of title in a foreclosure proceeding with respect to
1139such condominium parcels.
1140     718.708  Liability of developers and others.-An assignment
1141of developer rights to a bulk assignee or bulk buyer does not
1142release the developer from any liabilities under the declaration
1143or this chapter. This part does not limit the liability of the
1144developer for claims brought by unit owners, bulk assignees, or
1145bulk buyers for violations of this chapter by the developer,
1146unless specifically excluded in this part. Nothing contained
1147within this part waives, releases, compromises, or limits the
1148liability of contractors, subcontractors, materialmen,
1149manufacturers, architects, engineers, or any participant in the
1150design or construction of a condominium for any claim brought by
1151an association, unit owners, bulk assignees, or bulk buyers
1152arising from the design of the condominium, construction
1153defects, misrepresentations associated with condominium
1154property, or violations of this chapter, unless specifically
1155excluded in this part.
1156     Section 9.  Subsection (5) of section 719.1055, Florida
1157Statutes, is amended to read:
1158     719.1055  Amendment of cooperative documents; alteration
1159and acquisition of property.-
1160     (5)  There shall be a provision in the bylaws that a
1161certificate of compliance from a licensed electrical contractor
1162or electrician may be accepted by the association's board as
1163evidence of compliance of the cooperative units with the
1164applicable fire and life safety code. Notwithstanding the
1165provisions of chapter 633 or of any other code, statute,
1166ordinance, administrative rule, or regulation, or any
1167interpretation of the foregoing, a cooperative or unit owner is
1168not obligated to retrofit the common elements, common areas,
1169association-owned property, or units of a residential
1170cooperative with a fire sprinkler system or any other form of
1171engineered lifesafety life safety system in a building that has
1172been certified for occupancy by the applicable governmental
1173entity, if the unit owners have voted to forego such
1174retrofitting and engineered lifesafety life safety system by the
1175affirmative vote of two-thirds of all voting interests in the
1176affected cooperative. However, a cooperative may not forego the
1177retrofitting with a fire sprinkler system of common areas in a
1178high-rise building. For purposes of this subsection, the term
1179"high-rise building" means a building that is greater than 75
1180feet in height where the building height is measured from the
1181lowest level of fire department access to the floor of the
1182highest occupiable story. For purposes of this subsection, the
1183term "common areas" means any enclosed hallway, corridor, lobby,
1184stairwell, or entryway. In no event shall the local authority
1185having jurisdiction require completion of retrofitting of common
1186areas with a sprinkler system or other form of engineered
1187lifesafety system before the end of 2019 2014.
1188     (a)  A vote to forego retrofitting may be obtained by
1189limited proxy or by a ballot personally cast at a duly called
1190membership meeting, or by execution of a written consent by the
1191member, and shall be effective upon the recording of a
1192certificate attesting to such vote in the public records of the
1193county where the cooperative is located. The association shall
1194mail or, hand deliver, or electronically transmit to each unit
1195owner written notice at least 14 days prior to such membership
1196meeting in which the vote to forego retrofitting of the required
1197fire sprinkler system or any other form of engineered lifesafety
1198system is to take place. Within 30 days after the association's
1199opt-out vote, notice of the results of the opt-out vote shall be
1200mailed or, hand delivered, or electronically transmitted to all
1201unit owners. Evidence of compliance with this 30-day notice
1202shall be made by an affidavit executed by the person providing
1203the notice and filed among the official records of the
1204association. After such notice is provided to each owner, a copy
1205of such notice shall be provided by the current owner to a new
1206owner prior to closing and shall be provided by a unit owner to
1207a renter prior to signing a lease.
1208     (b) If there has been a previous vote approving the
1209association to forego retrofitting, a vote to require
1210retrofitting may be obtained at a special meeting of the unit
1211owners called by a petition of least 10 percent of the voting
1212interests. Such vote may only be called for once every 3 years.
1213Notice shall be provided as required for any regularly called
1214meeting of the unit owners, and the notice shall state the
1215purpose of the meeting. Electronic transmission may not be used
1216as a method of giving notice of a meeting called in whole or in
1217part for this purpose.
1218     (c)(b)  As part of the information collected annually from
1219cooperatives, the division shall require associations to report
1220the membership vote and recording of a certificate under this
1221subsection and, if retrofitting has been undertaken, the per-
1222unit cost of such work. The division shall annually report to
1223the Division of State Fire Marshal of the Department of
1224Financial Services the number of cooperatives that have elected
1225to forego retrofitting.
1226     Section 10.  Subsection (2) of section 553.509, Florida
1227Statutes, is repealed.
1228     Section 11.  This act shall take effect upon becoming a
1229law.


CODING: Words stricken are deletions; words underlined are additions.
Site Map
Session:   Bills ·   Calendars ·   Bound Journals ·   Citator ·   Search ·   Appropriations ·   Redistricting ·   Bill Information Reports
Committee Publications
Historical Information
Statutes:   Introduction ·   View Statutes ·   Search Statutes
Flsenate.gov
Disclaimer: The information on this system is unverified. The journals or printed bills of the respective chambers should be consulted for official purposes.    Copyright © 2000-2019 State of Florida.     Privacy Statement     Contact Us     Get Acrobat Reader