September 18, 2019
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CS/CS/HB 561

1
A bill to be entitled
2An act relating to community associations; amending s.
3399.02, F.S.; exempting certain elevators from specific
4code update requirements; providing a phase-in period for
5such elevators; creating s. 627.714, F.S.; requiring that
6coverage under a unit owner's policy for certain
7assessments include at least a minimum amount of loss
8assessment coverage; requiring that every property
9insurance policy to an individual unit owner contain a
10specified provision; amending s. 633.0215, F.S.; providing
11an exemption for certain condominiums and cooperatives
12from installing a manual fire alarm system as required in
13the Life Safety Code if certain conditions are met;
14amending s. 718.103, F.S.; revising the definition of the
15term "developer" to exclude a bulk assignee or bulk buyer;
16amending s. 718.111, F.S.; requiring that adequate
17property insurance be based upon the replacement cost of
18the property to be insured as determined by an independent
19appraisal or update of a prior appraisal; requiring that
20such replacement cost be determined at least once within a
21specified period; providing means by which an association
22may provide adequate property insurance; prohibiting such
23coverage or program from existing beyond a specified date;
24authorizing an association to consider deductibles when
25determining an adequate amount of property insurance;
26providing that failure to maintain adequate property
27insurance constitutes a breach of fiduciary duty by the
28members of the board of directors of an association;
29revising the procedures for the board to establish the
30amount of deductibles; requiring that an association
31controlled by unit owners operating as a residential
32condominium use its best efforts to obtain and maintain
33adequate property insurance to protect the association and
34certain property; requiring that every property insurance
35policy issued or renewed on or after a specified date
36provide certain coverage; excluding certain items from
37such requirement; providing that excluded items and any
38insurance thereupon are the responsibility of the unit
39owner; requiring that condominium unit owners' policies
40conform to certain provisions of state law; deleting
41provisions relating to certain hazard and casualty
42insurance policies; conforming provisions to changes made
43by the act; amending s. 718.112, F.S.; conforming cross-
44references; revising requirements for the reappointment of
45certain board members; revising board eligibility
46requirements; revising notice requirements for board
47candidates; establishing requirements for newly elected
48board members; deleting a provision prohibiting an
49association from foregoing the retrofitting with a fire
50sprinkler system of common areas in a high-rise building;
51prohibiting local authorities having jurisdiction from
52requiring retrofitting with a sprinkler system or other
53engineered lifesafety system before a specified date;
54providing requirements for a special meeting of unit
55owners that may be called every 3 years in order to vote
56to forgo retrofitting of the sprinkler system or other
57engineered lifesafety system; providing meeting notice
58requirements; providing that certain directors and
59officers delinquent in the payment of any fee, fine, or
60regular or special assessments shall be deemed to have
61abandoned their office; amending s. 718.115, F.S.;
62requiring that certain services obtained pursuant to a
63bulk contract as provided in the declaration be deemed a
64common expense; amending s. 718.301, F.S.; revising
65conditions under which unit owners other than the
66developer may elect not less than a majority of the
67members of the board of administration of an association;
68creating part VII of ch. 718, F.S., relating to distressed
69condominium relief; providing a short title; providing
70legislative findings and intent; defining the terms "bulk
71assignee" and "bulk buyer"; providing for the assignment
72of developer rights to and the assumption of developer
73rights by a bulk assignee; specifying liabilities of bulk
74assignees and bulk buyers; providing exceptions; providing
75additional responsibilities of bulk assignees and bulk
76buyers; authorizing certain entities to assign developer
77rights to a bulk assignee; limiting the number of bulk
78assignees at any given time; providing for the transfer of
79control of a board of administration; providing effects of
80such transfer on parcels acquired by a bulk assignee;
81providing obligations of a bulk assignee upon the transfer
82of control of a board of administration; requiring that a
83bulk assignee certify certain information in writing;
84providing for the resolution of a conflict between
85specified provisions of state law; providing that the
86failure of a bulk assignee or bulk buyer to comply with
87specified provisions of state law results in the loss of
88certain protections and exemptions; requiring that a bulk
89assignee or bulk buyer file certain information with the
90Division of Florida Condominiums, Timeshares, and Mobile
91Homes of the Department of Business and Professional
92Regulation before offering any units for sale or lease in
93excess of a specified term; requiring that a copy of such
94information be provided to a prospective purchaser;
95requiring that certain contracts and disclosure statements
96contain specified statements; requiring that a bulk
97assignee or bulk buyer comply with certain disclosure
98requirements; prohibiting a bulk assignee from taking
99certain actions on behalf of an association while the bulk
100assignee is in control of the board of administration of
101the association and requiring that such bulk assignee
102comply with certain requirements; requiring that a bulk
103assignee or bulk buyer comply with certain requirements
104regarding certain contracts; providing unit owners with
105specified protections regarding certain contracts;
106requiring that a bulk buyer comply with certain
107requirements regarding the transfer of a unit; prohibiting
108a person from being classified as a bulk assignee or bulk
109buyer unless condominium parcels were acquired before a
110specified date; providing for the determination of the
111date of acquisition of a parcel; providing that the
112assignment of developer rights to a bulk assignee or bulk
113buyer does not release a developer from certain
114liabilities; preserving certain liabilities for certain
115parties; amending s. 719.1055, F.S.; providing an
116additional required provision in cooperative bylaws;
117deleting a provision prohibiting an association from
118foregoing the retrofitting with a fire sprinkler system of
119common areas in a high-rise building; prohibiting local
120authorities having jurisdiction from requiring
121retrofitting with a sprinkler system or other engineered
122lifesafety system before a specified date; providing
123requirements for a special meeting of unit owners that may
124be called every 3 years in order to vote to require
125retrofitting of the sprinkler system or other engineered
126lifesafety system; providing meeting notice requirements;
127repealing s. 553.509(2), F.S., relating to the requirement
128that certain residential family dwellings have at least
129one public elevator that is capable of operating on an
130alternate power source for emergency purposes; providing
131an effective date.
132
133Be It Enacted by the Legislature of the State of Florida:
134
135     Section 1.  Subsection (8) is added to section 399.02,
136Florida Statutes, to read:
137     399.02  General requirements.-
138     (8)  Updates to the code requiring modifications for Phase
139II Firefighters' Service on existing elevators, as amended into
140the Safety Code for Existing Elevators and Escalators, ASME
141A17.1 and A17.3, may not be enforced on elevators in
142condominiums or cooperatives issued a certificate of occupancy
143by the local building authority as of July 1, 2008, for 5 years
144or until the elevator is replaced or requires major
145modification, whichever occurs first. This exception does not
146apply to a building for which a certificate of occupancy was
147issued after July 1, 2008. This exception does not prevent an
148elevator owner from requesting a variance from the applicable
149codes before or after the expiration of the 5-year term. This
150subsection does not prohibit the division from granting
151variances pursuant to s. 120.542. The division shall adopt rules
152to administer this subsection.
153     Section 2.  Section 627.714, Florida Statutes, is created
154to read:
155     627.714  Residential condominium unit owner coverage; loss
156assessment coverage required; excess coverage provision
157required.-For policies issued or renewed on or after July 1,
1582010, coverage under a unit owner's residential property policy
159shall include property loss assessment coverage of at least
160$2,000 for all assessments made as a result of the same direct
161loss to the property, regardless of the number of assessments,
162owned by all members of the association collectively when such
163loss is of the type of loss covered by the unit owner's
164residential property insurance policy, to which a deductible
165shall apply of no more than $250 per direct property loss. If a
166deductible was or will be applied to other property loss
167sustained by the unit owner resulting from the same direct loss
168to the property, no deductible shall apply to the loss
169assessment coverage. Every individual unit owner's residential
170property policy must contain a provision stating that the
171coverage afforded by such policy is excess coverage over the
172amount recoverable under any other policy covering the same
173property.
174     Section 3.  Subsection (13) is added to section 633.0215,
175Florida Statutes, to read:
176     633.0215  Florida Fire Prevention Code.-
177     (13)  A condominium or cooperative that is less than four
178stories in height and has an exterior means of egress corridor
179is exempt from installing a manual fire alarm system as required
180in s. 9.6 of the most recent edition of the Life Safety Code
181adopted in the Florida Fire Prevention Code, or as same may be
182amended or renumbered.
183     Section 4.  Subsection (16) of section 718.103, Florida
184Statutes, is amended to read:
185     718.103  Definitions.-As used in this chapter, the term:
186     (16)  "Developer" means a person who creates a condominium
187or offers condominium parcels for sale or lease in the ordinary
188course of business, but does not include:
189     (a)  An owner or lessee of a condominium or cooperative
190unit who has acquired the unit for his or her own occupancy;,
191nor does it include
192     (b)  A cooperative association which creates a condominium
193by conversion of an existing residential cooperative after
194control of the association has been transferred to the unit
195owners if, following the conversion, the unit owners will be the
196same persons who were unit owners of the cooperative and no
197units are offered for sale or lease to the public as part of the
198plan of conversion;.
199     (c)  A bulk assignee or bulk buyer as defined in s.
200718.703; or
201     (d)  A state, county, or municipal entity is not a
202developer for any purposes under this act when it is acting as a
203lessor and not otherwise named as a developer in the declaration
204of condominium association.
205     Section 5.  Paragraphs (a), (b), (c), (d), (f), (g), (j),
206and (n) of subsection (11) of section 718.111, Florida Statutes,
207are amended to read:
208     718.111  The association.-
209     (11)  INSURANCE.-In order to protect the safety, health,
210and welfare of the people of the State of Florida and to ensure
211consistency in the provision of insurance coverage to
212condominiums and their unit owners, this subsection applies to
213every residential condominium in the state, regardless of the
214date of its declaration of condominium. It is the intent of the
215Legislature to encourage lower or stable insurance premiums for
216associations described in this subsection.
217     (a)  Adequate property hazard insurance, regardless of any
218requirement in the declaration of condominium for coverage by
219the association for full insurable value, replacement cost, or
220similar coverage, shall be based upon the replacement cost of
221the property to be insured as determined by an independent
222insurance appraisal or update of a prior appraisal. The
223replacement cost full insurable value shall be determined at
224least once every 36 months.
225     1.  An association or group of associations may provide
226adequate property hazard insurance through a self-insurance fund
227that complies with the requirements of ss. 624.460-624.488.
228     2.  The association may also provide adequate property
229hazard insurance coverage for a group of no fewer than three
230communities created and operating under this chapter, chapter
231719, chapter 720, or chapter 721 by obtaining and maintaining
232for such communities insurance coverage sufficient to cover an
233amount equal to the probable maximum loss for the communities
234for a 250-year windstorm event. Such probable maximum loss must
235be determined through the use of a competent model that has been
236accepted by the Florida Commission on Hurricane Loss Projection
237Methodology. No policy or program providing such coverage shall
238be issued or renewed after July 1, 2008, unless it has been
239reviewed and approved by the Office of Insurance Regulation. The
240review and approval shall include approval of the policy and
241related forms pursuant to ss. 627.410 and 627.411, approval of
242the rates pursuant to s. 627.062, a determination that the loss
243model approved by the commission was accurately and
244appropriately applied to the insured structures to determine the
245250-year probable maximum loss, and a determination that
246complete and accurate disclosure of all material provisions is
247provided to condominium unit owners prior to execution of the
248agreement by a condominium association.
249     3.  When determining the adequate amount of property hazard
250insurance coverage, the association may consider deductibles as
251determined by this subsection.
252     (b)  If an association is a developer-controlled
253association, the association shall exercise its best efforts to
254obtain and maintain insurance as described in paragraph (a).
255Failure to obtain and maintain adequate property hazard
256insurance during any period of developer control constitutes a
257breach of fiduciary responsibility by the developer-appointed
258members of the board of directors of the association, unless the
259members can show that despite such failure, they have made their
260best efforts to maintain the required coverage.
261     (c)  Policies may include deductibles as determined by the
262board.
263     1.  The deductibles shall be consistent with industry
264standards and prevailing practice for communities of similar
265size and age, and having similar construction and facilities in
266the locale where the condominium property is situated.
267     2.  The deductibles may be based upon available funds,
268including reserve accounts, or predetermined assessment
269authority at the time the insurance is obtained.
270     3.  The board shall establish the amount of deductibles
271based upon the level of available funds and predetermined
272assessment authority at a meeting of the board. Such meeting
273shall be open to all unit owners in the manner set forth in s.
274718.112(2)(e). The notice of such meeting must state the
275proposed deductible and the available funds and the assessment
276authority relied upon by the board and estimate any potential
277assessment amount against each unit, if any. The meeting
278described in this paragraph may be held in conjunction with a
279meeting to consider the proposed budget or an amendment thereto.
280     (d)  An association controlled by unit owners operating as
281a residential condominium shall use its best efforts to obtain
282and maintain adequate property insurance to protect the
283association, the association property, the common elements, and
284the condominium property that is required to be insured by the
285association pursuant to this subsection.
286     (f)  Every property hazard insurance policy issued or
287renewed on or after January 1, 2009, for the purpose of
288protecting the condominium shall provide primary coverage for:
289     1.  All portions of the condominium property as originally
290installed or replacement of like kind and quality, in accordance
291with the original plans and specifications.
292     2.  All alterations or additions made to the condominium
293property or association property pursuant to s. 718.113(2).
294     3.  The coverage shall exclude all personal property within
295the unit or limited common elements, and floor, wall, and
296ceiling coverings, electrical fixtures, appliances, water
297heaters, water filters, built-in cabinets and countertops, and
298window treatments, including curtains, drapes, blinds, hardware,
299and similar window treatment components, or replacements of any
300of the foregoing which are located within the boundaries of the
301unit and serve only such unit. Such property and any insurance
302thereupon shall be the responsibility of the unit owner.
303     (g)  A condominium unit owner's policy shall conform to the
304requirements of s. 627.714. Every hazard insurance policy issued
305or renewed on or after January 1, 2009, to an individual unit
306owner must contain a provision stating that the coverage
307afforded by such policy is excess coverage over the amount
308recoverable under any other policy covering the same property.
309Such policies must include special assessment coverage of no
310less than $2,000 per occurrence. An insurance policy issued to
311an individual unit owner providing such coverage does not
312provide rights of subrogation against the condominium
313association operating the condominium in which such individual's
314unit is located.
315     1.  All improvements or additions to the condominium
316property that benefit fewer than all unit owners shall be
317insured by the unit owner or owners having the use thereof, or
318may be insured by the association at the cost and expense of the
319unit owners having the use thereof.
320     2.  The association shall require each owner to provide
321evidence of a currently effective policy of hazard and liability
322insurance upon request, but not more than once per year. Upon
323the failure of an owner to provide a certificate of insurance
324issued by an insurer approved to write such insurance in this
325state within 30 days after the date on which a written request
326is delivered, the association may purchase a policy of insurance
327on behalf of an owner. The cost of such a policy, together with
328reconstruction costs undertaken by the association but which are
329the responsibility of the unit owner, may be collected in the
330manner provided for the collection of assessments in s. 718.116.
331     1.3.  All reconstruction work after a property casualty
332loss shall be undertaken by the association except as otherwise
333authorized in this section. A unit owner may undertake
334reconstruction work on portions of the unit with the prior
335written consent of the board of administration. However, such
336work may be conditioned upon the approval of the repair methods,
337the qualifications of the proposed contractor, or the contract
338that is used for that purpose. A unit owner shall obtain all
339required governmental permits and approvals prior to commencing
340reconstruction.
341     2.4.  Unit owners are responsible for the cost of
342reconstruction of any portions of the condominium property for
343which the unit owner is required to carry property casualty
344insurance, and any such reconstruction work undertaken by the
345association shall be chargeable to the unit owner and
346enforceable as an assessment pursuant to s. 718.116. The
347association must be an additional named insured and loss payee
348on all casualty insurance policies issued to unit owners in the
349condominium operated by the association.
350     3.5.  A multicondominium association may elect, by a
351majority vote of the collective members of the condominiums
352operated by the association, to operate such condominiums as a
353single condominium for purposes of insurance matters, including,
354but not limited to, the purchase of the property hazard
355insurance required by this section and the apportionment of
356deductibles and damages in excess of coverage. The election to
357aggregate the treatment of insurance premiums, deductibles, and
358excess damages constitutes an amendment to the declaration of
359all condominiums operated by the association, and the costs of
360insurance shall be stated in the association budget. The
361amendments shall be recorded as required by s. 718.110.
362     (j)  Any portion of the condominium property required to be
363insured by the association against property casualty loss
364pursuant to paragraph (f) which is damaged by casualty shall be
365reconstructed, repaired, or replaced as necessary by the
366association as a common expense. All property hazard insurance
367deductibles, uninsured losses, and other damages in excess of
368property hazard insurance coverage under the property hazard
369insurance policies maintained by the association are a common
370expense of the condominium, except that:
371     1.  A unit owner is responsible for the costs of repair or
372replacement of any portion of the condominium property not paid
373by insurance proceeds, if such damage is caused by intentional
374conduct, negligence, or failure to comply with the terms of the
375declaration or the rules of the association by a unit owner, the
376members of his or her family, unit occupants, tenants, guests,
377or invitees, without compromise of the subrogation rights of any
378insurer as set forth in paragraph (g).
379     2.  The provisions of subparagraph 1. regarding the
380financial responsibility of a unit owner for the costs of
381repairing or replacing other portions of the condominium
382property also apply to the costs of repair or replacement of
383personal property of other unit owners or the association, as
384well as other property, whether real or personal, which the unit
385owners are required to insure under paragraph (g).
386     3.  To the extent the cost of repair or reconstruction for
387which the unit owner is responsible under this paragraph is
388reimbursed to the association by insurance proceeds, and, to the
389extent the association has collected the cost of such repair or
390reconstruction from the unit owner, the association shall
391reimburse the unit owner without the waiver of any rights of
392subrogation.
393     4.  The association is not obligated to pay for
394reconstruction or repairs of property casualty losses as a
395common expense if the property casualty losses were known or
396should have been known to a unit owner and were not reported to
397the association until after the insurance claim of the
398association for that property casualty was settled or resolved
399with finality, or denied on the basis that it was untimely
400filed.
401     (n)  The association is not obligated to pay for any
402reconstruction or repair expenses due to property casualty loss
403to any improvements installed by a current or former owner of
404the unit or by the developer if the improvement benefits only
405the unit for which it was installed and is not part of the
406standard improvements installed by the developer on all units as
407part of original construction, whether or not such improvement
408is located within the unit. This paragraph does not relieve any
409party of its obligations regarding recovery due under any
410insurance implemented specifically for any such improvements.
411     Section 6.  Paragraphs (b), (d), (l), and (n) of subsection
412(2) of section 718.112, Florida Statutes, are amended to read:
413     718.112  Bylaws.-
414     (2)  REQUIRED PROVISIONS.-The bylaws shall provide for the
415following and, if they do not do so, shall be deemed to include
416the following:
417     (b)  Quorum; voting requirements; proxies.-
418     1.  Unless a lower number is provided in the bylaws, the
419percentage of voting interests required to constitute a quorum
420at a meeting of the members shall be a majority of the voting
421interests. Unless otherwise provided in this chapter or in the
422declaration, articles of incorporation, or bylaws, and except as
423provided in sub-subparagraph subparagraph (d)3.a., decisions
424shall be made by owners of a majority of the voting interests
425represented at a meeting at which a quorum is present.
426     2.  Except as specifically otherwise provided herein, after
427January 1, 1992, unit owners may not vote by general proxy, but
428may vote by limited proxies substantially conforming to a
429limited proxy form adopted by the division. No voting interest
430or consent right allocated to a unit owned by the association
431shall be exercised or considered for any purpose, whether for a
432quorum, an election, or otherwise. Limited proxies and general
433proxies may be used to establish a quorum. Limited proxies shall
434be used for votes taken to waive or reduce reserves in
435accordance with subparagraph (f)2.; for votes taken to waive the
436financial reporting requirements of s. 718.111(13); for votes
437taken to amend the declaration pursuant to s. 718.110; for votes
438taken to amend the articles of incorporation or bylaws pursuant
439to this section; and for any other matter for which this chapter
440requires or permits a vote of the unit owners. Except as
441provided in paragraph (d), after January 1, 1992, no proxy,
442limited or general, shall be used in the election of board
443members. General proxies may be used for other matters for which
444limited proxies are not required, and may also be used in voting
445for nonsubstantive changes to items for which a limited proxy is
446required and given. Notwithstanding the provisions of this
447subparagraph, unit owners may vote in person at unit owner
448meetings. Nothing contained herein shall limit the use of
449general proxies or require the use of limited proxies for any
450agenda item or election at any meeting of a timeshare
451condominium association.
452     3.  Any proxy given shall be effective only for the
453specific meeting for which originally given and any lawfully
454adjourned meetings thereof. In no event shall any proxy be valid
455for a period longer than 90 days after the date of the first
456meeting for which it was given. Every proxy is revocable at any
457time at the pleasure of the unit owner executing it.
458     4.  A member of the board of administration or a committee
459may submit in writing his or her agreement or disagreement with
460any action taken at a meeting that the member did not attend.
461This agreement or disagreement may not be used as a vote for or
462against the action taken and may not be used for the purposes of
463creating a quorum.
464     5.  When any of the board or committee members meet by
465telephone conference, those board or committee members attending
466by telephone conference may be counted toward obtaining a quorum
467and may vote by telephone. A telephone speaker must be used so
468that the conversation of those board or committee members
469attending by telephone may be heard by the board or committee
470members attending in person as well as by any unit owners
471present at a meeting.
472     (d)  Unit owner meetings.-
473     1.  There shall be an annual meeting of the unit owners
474held at the location provided in the association bylaws and, if
475the bylaws are silent as to the location, the meeting shall be
476held within 45 miles of the condominium property. However, such
477distance requirement does not apply to an association governing
478a timeshare condominium. Unless the bylaws provide otherwise, a
479vacancy on the board caused by the expiration of a director's
480term shall be filled by electing a new board member, and the
481election shall be by secret ballot; however, if the number of
482vacancies equals or exceeds the number of candidates, no
483election is required. Except in a timeshare condominium, the
484terms of all members of the board shall expire at the annual
485meeting and such board members may stand for reelection unless
486otherwise permitted by the bylaws. In the event that the
487governing documents bylaws permit staggered terms of no more
488than 2 years and upon approval of a majority of the total voting
489interests, the association board members may serve 2-year
490staggered terms. If the number no person is interested in or
491demonstrates an intention to run for the position of a board
492members member whose terms have term has expired according to
493the provisions of this subparagraph exceeds the number of
494eligible members showing interest in or demonstrating an
495intention to run for the vacant positions, each such board
496member whose term has expired shall become eligible for
497reappointment be automatically reappointed to the board of
498administration and need not stand for reelection. In a
499condominium association of more than 10 units or in a
500condominium association that does not include timeshare units,
501coowners of a unit may not serve as members of the board of
502directors at the same time unless they own more than one unit
503and are not co-occupants of a unit. Any unit owner desiring to
504be a candidate for board membership must shall comply with sub-
505subparagraph subparagraph 3.a. A person who has been suspended
506or removed by the division under this chapter, or who is
507delinquent in the payment of any fee, fine, or special or
508regular assessment as provided in paragraph (n), is not eligible
509for board membership. A person who has been convicted of any
510felony in this state or in a United States District or
511Territorial Court, or who has been convicted of any offense in
512another jurisdiction that would be considered a felony if
513committed in this state, is not eligible for board membership
514unless such felon's civil rights have been restored for a period
515of no less than 5 years as of the date on which such person
516seeks election to the board. The validity of an action by the
517board is not affected if it is later determined that a member of
518the board is ineligible for board membership due to having been
519convicted of a felony.
520     2.  The bylaws shall provide the method of calling meetings
521of unit owners, including annual meetings. Written notice, which
522notice must include an agenda, shall be mailed, hand delivered,
523or electronically transmitted to each unit owner at least 14
524days prior to the annual meeting and shall be posted in a
525conspicuous place on the condominium property at least 14
526continuous days preceding the annual meeting. Upon notice to the
527unit owners, the board shall by duly adopted rule designate a
528specific location on the condominium property or association
529property upon which all notices of unit owner meetings shall be
530posted; however, if there is no condominium property or
531association property upon which notices can be posted, this
532requirement does not apply. In lieu of or in addition to the
533physical posting of notice of any meeting of the unit owners on
534the condominium property, the association may, by reasonable
535rule, adopt a procedure for conspicuously posting and repeatedly
536broadcasting the notice and the agenda on a closed-circuit cable
537television system serving the condominium association. However,
538if broadcast notice is used in lieu of a notice posted
539physically on the condominium property, the notice and agenda
540must be broadcast at least four times every broadcast hour of
541each day that a posted notice is otherwise required under this
542section. When broadcast notice is provided, the notice and
543agenda must be broadcast in a manner and for a sufficient
544continuous length of time so as to allow an average reader to
545observe the notice and read and comprehend the entire content of
546the notice and the agenda. Unless a unit owner waives in writing
547the right to receive notice of the annual meeting, such notice
548shall be hand delivered, mailed, or electronically transmitted
549to each unit owner. Notice for meetings and notice for all other
550purposes shall be mailed to each unit owner at the address last
551furnished to the association by the unit owner, or hand
552delivered to each unit owner. However, if a unit is owned by
553more than one person, the association shall provide notice, for
554meetings and all other purposes, to that one address which the
555developer initially identifies for that purpose and thereafter
556as one or more of the owners of the unit shall so advise the
557association in writing, or if no address is given or the owners
558of the unit do not agree, to the address provided on the deed of
559record. An officer of the association, or the manager or other
560person providing notice of the association meeting, shall
561provide an affidavit or United States Postal Service certificate
562of mailing, to be included in the official records of the
563association affirming that the notice was mailed or hand
564delivered, in accordance with this provision.
565     3.a.  The members of the board shall be elected by written
566ballot or voting machine. Proxies shall in no event be used in
567electing the board, either in general elections or elections to
568fill vacancies caused by recall, resignation, or otherwise,
569unless otherwise provided in this chapter. Not less than 60 days
570before a scheduled election, the association shall mail,
571deliver, or electronically transmit, whether by separate
572association mailing or included in another association mailing,
573delivery, or transmission, including regularly published
574newsletters, to each unit owner entitled to a vote, a first
575notice of the date of the election along with a certification
576form provided by the division attesting that he or she has read
577and understands, to the best of his or her ability, the
578governing documents of the association and the provisions of
579this chapter and any applicable rules. Any unit owner or other
580eligible person desiring to be a candidate for the board must
581give written notice of intent to be a candidate to the
582association not less than 40 days before a scheduled election.
583Together with the written notice and agenda as set forth in
584subparagraph 2., the association shall mail, deliver, or
585electronically transmit a second notice of the election to all
586unit owners entitled to vote therein, together with a ballot
587which shall list all candidates. Upon request of a candidate,
588the association shall include an information sheet, no larger
589than 8 1/2 inches by 11 inches, which must be furnished by the
590candidate not less than 35 days before the election, shall along
591with the signed certification form provided for in this
592subparagraph, to be included with the mailing, delivery, or
593transmission of the ballot, with the costs of mailing, delivery,
594or electronic transmission and copying to be borne by the
595association. The association is not liable for the contents of
596the information sheets prepared by the candidates. In order to
597reduce costs, the association may print or duplicate the
598information sheets on both sides of the paper. The division
599shall by rule establish voting procedures consistent with the
600provisions contained herein, including rules establishing
601procedures for giving notice by electronic transmission and
602rules providing for the secrecy of ballots. Elections shall be
603decided by a plurality of those ballots cast. There shall be no
604quorum requirement; however, at least 20 percent of the eligible
605voters must cast a ballot in order to have a valid election of
606members of the board. No unit owner shall permit any other
607person to vote his or her ballot, and any such ballots
608improperly cast shall be deemed invalid, provided any unit owner
609who violates this provision may be fined by the association in
610accordance with s. 718.303. A unit owner who needs assistance in
611casting the ballot for the reasons stated in s. 101.051 may
612obtain assistance in casting the ballot. The regular election
613shall occur on the date of the annual meeting. The provisions of
614this sub-subparagraph subparagraph shall not apply to timeshare
615condominium associations. Notwithstanding the provisions of this
616sub-subparagraph subparagraph, an election is not required
617unless more candidates file notices of intent to run or are
618nominated than board vacancies exist.
619     b.  Within 90 days after being elected to the board, each
620newly elected director shall certify in writing to the secretary
621of the association that he or she has read the association's
622declarations of covenants and restrictions, articles of
623incorporation, bylaws, and current written policies; that he or
624she will work to uphold such documents and policies to the best
625of his or her ability; and that he or she will faithfully
626discharge his or her fiduciary responsibility to the
627association's members. In lieu of this written certification,
628the newly elected director may submit a certificate of
629satisfactory completion of the educational curriculum
630administered by a division-approved condominium education
631provider. Failure to timely file the written certification or
632educational certificate automatically disqualifies the director
633from service on the board. Notwithstanding the foregoing, a
634director shall not be automatically removed from the board if
635the director's failure to provide the completed education
636certificate results from a failure of the education provider to
637timely provide it. The secretary shall cause the association to
638retain a director's written certification or educational
639certificate for inspection by the members for 5 years after a
640director's election. Failure to have such written certification
641or educational certificate on file does not affect the validity
642of any appropriate action.
643     4.  Any approval by unit owners called for by this chapter
644or the applicable declaration or bylaws, including, but not
645limited to, the approval requirement in s. 718.111(8), shall be
646made at a duly noticed meeting of unit owners and shall be
647subject to all requirements of this chapter or the applicable
648condominium documents relating to unit owner decisionmaking,
649except that unit owners may take action by written agreement,
650without meetings, on matters for which action by written
651agreement without meetings is expressly allowed by the
652applicable bylaws or declaration or any statute that provides
653for such action.
654     5.  Unit owners may waive notice of specific meetings if
655allowed by the applicable bylaws or declaration or any statute.
656If authorized by the bylaws, notice of meetings of the board of
657administration, unit owner meetings, except unit owner meetings
658called to recall board members under paragraph (j), and
659committee meetings may be given by electronic transmission to
660unit owners who consent to receive notice by electronic
661transmission.
662     6.  Unit owners shall have the right to participate in
663meetings of unit owners with reference to all designated agenda
664items. However, the association may adopt reasonable rules
665governing the frequency, duration, and manner of unit owner
666participation.
667     7.  Any unit owner may tape record or videotape a meeting
668of the unit owners subject to reasonable rules adopted by the
669division.
670     8.  Unless otherwise provided in the bylaws, any vacancy
671occurring on the board before the expiration of a term may be
672filled by the affirmative vote of the majority of the remaining
673directors, even if the remaining directors constitute less than
674a quorum, or by the sole remaining director. In the alternative,
675a board may hold an election to fill the vacancy, in which case
676the election procedures must conform to the requirements of sub-
677subparagraph subparagraph 3.a. unless the association governs 10
678units or fewer less and has opted out of the statutory election
679process, in which case the bylaws of the association control.
680Unless otherwise provided in the bylaws, a board member
681appointed or elected under this section shall fill the vacancy
682for the unexpired term of the seat being filled. Filling
683vacancies created by recall is governed by paragraph (j) and
684rules adopted by the division.
685
686Notwithstanding subparagraph subparagraphs (b)2. and sub-
687subparagraph (d)3.a., an association of 10 or fewer units may,
688by the affirmative vote of a majority of the total voting
689interests, provide for different voting and election procedures
690in its bylaws, which vote may be by a proxy specifically
691delineating the different voting and election procedures. The
692different voting and election procedures may provide for
693elections to be conducted by limited or general proxy.
694     (l)  Certificate of compliance.-There shall be a provision
695that a certificate of compliance from a licensed electrical
696contractor or electrician may be accepted by the association's
697board as evidence of compliance of the condominium units with
698the applicable fire and life safety code. Notwithstanding the
699provisions of chapter 633 or of any other code, statute,
700ordinance, administrative rule, or regulation, or any
701interpretation of the foregoing, an association, condominium, or
702unit owner is not obligated to retrofit the common elements,
703common areas, association-owned property, or units of a
704residential condominium with a fire sprinkler system or any
705other form of engineered lifesafety system in a building that
706has been certified for occupancy by the applicable governmental
707entity, if the unit owners have voted to forego such
708retrofitting and engineered lifesafety system by the affirmative
709vote of two-thirds of all voting interests in the affected
710condominium. However, a condominium association may not vote to
711forego the retrofitting with a fire sprinkler system of common
712areas in a high-rise building. For purposes of this subsection,
713the term "high-rise building" means a building that is greater
714than 75 feet in height where the building height is measured
715from the lowest level of fire department access to the floor of
716the highest occupiable story. For purposes of this subsection,
717the term "common areas" means any enclosed hallway, corridor,
718lobby, stairwell, or entryway. In no event shall the local
719authority having jurisdiction require completion of retrofitting
720of common areas with a sprinkler system or any other form of
721engineered lifesafety system before the end of 2019 2014.
722     1.  A vote to forego retrofitting may be obtained by
723limited proxy or by a ballot personally cast at a duly called
724membership meeting, or by execution of a written consent by the
725member, and shall be effective upon the recording of a
726certificate attesting to such vote in the public records of the
727county where the condominium is located. The association shall
728mail or, hand deliver, or electronically transmit to each unit
729owner written notice at least 14 days
730meeting in which the vote to forego
731fire sprinkler system or any other
732system is to take place. Within 30 days after the association's
733opt-out vote, notice of the results of the opt-out vote shall be
734mailed or, hand delivered, or electronically transmitted to all
735unit owners. Evidence of compliance with this 30-day notice
736shall be made by an affidavit executed by the person providing
737the notice and filed among the official records of the
738association. After such notice is provided to each owner, a copy
739of such notice shall be provided by the current owner to a new
740owner prior to closing and shall be provided by a unit owner to
741a renter prior to signing a lease.
742     2.  If there has been a previous vote approving the
743association to forego retrofitting, a vote to require
744retrofitting may be obtained at a special meeting of the unit
745owners called by a petition of least 10 percent of the voting
746interests. Such a vote may only be called for once every 3
747years. Notice shall be provided as required for any regularly
748called meeting of the unit owners, and the notice shall state
749the purpose of the meeting. Electronic transmission may not be
750used as a method of giving notice of a meeting called in whole
751or in part for this purpose.
752     3.2.  As part of the information collected annually from
753condominiums, the division shall require condominium
754associations to report the membership vote and recording of a
755certificate under this subsection and, if retrofitting has been
756undertaken, the per-unit cost of such work. The division shall
757annually report to the Division of State Fire Marshal of the
758Department of Financial Services the number of condominiums that
759have elected to forego retrofitting.
760     (n)  Director or officer delinquencies.-A director or
761officer more than 90 days delinquent in the payment of any fee,
762fine, or regular or special assessments shall be deemed to have
763abandoned the office, creating a vacancy in the office to be
764filled according to law.
765     Section 7.  Paragraph (d) of subsection (1) of section
766718.115, Florida Statutes, is amended to read:
767     718.115  Common expenses and common surplus.-
768     (1)
769     (d)  If the association is authorized pursuant to so
770provided in the declaration to enter into a bulk contract for
771communications services as defined in chapter 202, information
772services, or Internet services, the costs charged for such
773services, the cost of a master antenna television system or duly
774franchised cable television service obtained pursuant to a bulk
775contract shall be deemed a common expense. If the declaration
776does not authorize the association to enter into a bulk contract
777for provide for the cost of communications services as defined
778in chapter 202, information services, or Internet services a
779master antenna television system or duly franchised cable
780television service obtained under a bulk contract as a common
781expense, the board may enter into such a contract for such
782services., and The cost of the services under a bulk contract
783service will be a common expense but allocated on a per-unit
784basis rather than a percentage basis if the declaration provides
785for other than an equal sharing of common expenses, and any
786contract entered into before July 1, 1998, in which the cost of
787the service is not equally divided among all unit owners, may be
788changed by vote of a majority of the voting interests present at
789a regular or special meeting of the association, to allocate the
790cost equally among all units. The contract shall be for a term
791of not less than 2 years.
792     1.  Any contract made by the board after the effective date
793hereof for communications services as defined in chapter 202,
794information services, or Internet services a community antenna
795system or duly franchised cable television service may be
796canceled by a majority of the voting interests present at the
797next regular or special meeting of the association. Any member
798may make a motion to cancel the said contract, but if no motion
799is made or if such motion fails to obtain the required majority
800at the next regular or special meeting, whichever occurs is
801sooner, following the making of the contract, then such contract
802shall be deemed ratified for the term therein expressed. Any
803contract made by the association prior to assumption of control
804of the association by unit owners other than the developer may
805be canceled within 120 days after unit owners other than the
806developer elect a majority of the board of directors consistent
807with the provisions of s. 718.302(1).
808     2.  Any such contract shall provide, and shall be deemed to
809provide if not expressly set forth, that any hearing-impaired or
810legally blind unit owner who does not occupy the unit with a
811non-hearing-impaired or sighted person, or any unit owner
812receiving supplemental security income under Title XVI of the
813Social Security Act or food stamps as administered by the
814Department of Children and Family Services pursuant to s.
815414.31, may discontinue the cable or video service without
816incurring disconnect fees, penalties, or subsequent service
817charges, and, as to such units, the owners shall not be required
818to pay any common expenses charge related to such service. If
819less than all members of an association share the expenses of
820cable or video service television, the expense shall be shared
821equally by all participating unit owners. The association may
822use the provisions of s. 718.116 to enforce payment of the
823shares of such costs by the unit owners receiving cable or video
824service television.
825     Section 8.  Subsection (1) of section 718.301, Florida
826Statutes, is amended to read:
827     718.301  Transfer of association control; claims of defect
828by association.-
829     (1)  When unit owners other than the developer own 15
830percent or more of the units in a condominium that will be
831operated ultimately by an association, the unit owners other
832than the developer shall be entitled to elect no less than one-
833third of the members of the board of administration of the
834association. Unit owners other than the developer are entitled
835to elect not less than a majority of the members of the board of
836administration of an association:
837     (a)  Three years after 50 percent of the units that will be
838operated ultimately by the association have been conveyed to
839purchasers;
840     (b)  Three months after 90 percent of the units that will
841be operated ultimately by the association have been conveyed to
842purchasers;
843     (c)  When all the units that will be operated ultimately by
844the association have been completed, some of them have been
845conveyed to purchasers, and none of the others are being offered
846for sale by the developer in the ordinary course of business;
847     (d)  When some of the units have been conveyed to
848purchasers and none of the others are being constructed or
849offered for sale by the developer in the ordinary course of
850business;
851     (e)  When the developer files a petition seeking protection
852in bankruptcy;
853     (f)  When a receiver for the developer is appointed by a
854circuit court and is not discharged within 30 days after such
855appointment, unless the court determines within 30 days after
856appointment of the receiver that transfer of control would be
857detrimental to the association or its members; or
858     (g)  Seven years after recordation of the declaration of
859condominium; or, in the case of an association which may
860ultimately operate more than one condominium, 7 years after
861recordation of the declaration for the first condominium it
862operates; or, in the case of an association operating a phase
863condominium created pursuant to s. 718.403, 7 years after
864recordation of the declaration creating the initial phase,
865
866whichever occurs first. The developer is entitled to elect at
867least one member of the board of administration of an
868association as long as the developer holds for sale in the
869ordinary course of business at least 5 percent, in condominiums
870with fewer than 500 units, and 2 percent, in condominiums with
871more than 500 units, of the units in a condominium operated by
872the association. Following the time the developer relinquishes
873control of the association, the developer may exercise the right
874to vote any developer-owned units in the same manner as any
875other unit owner except for purposes of reacquiring control of
876the association or selecting the majority members of the board
877of administration.
878     Section 9.  Part VII of chapter 718, Florida Statutes,
879consisting of sections 718.701, 718.702, 718.703, 718.704,
880718.705, 718.706, 718.707, and 718.708, is created to read:
881
PART VII
882
DISTRESSED CONDOMINIUM RELIEF
883     718.701  Short title.-This part may be cited as the
884"Distressed Condominium Relief Act."
885     718.702  Legislative intent.-
886     (1)  The Legislature acknowledges the massive downturn in
887the condominium market which has transpired throughout the state
888and the impact of such downturn on developers, lenders, unit
889owners, and condominium associations. Numerous condominium
890projects have either failed or are in the process of failing,
891whereby the condominium has a small percentage of third-party
892unit owners as compared to the unsold inventory of units. As a
893result of the inability to find purchasers for this inventory of
894units, which results in part from the devaluing of real estate
895in this state, developers are unable to satisfy the requirements
896of their lenders, leading to defaults on mortgages.
897Consequently, lenders are faced with the task of finding a
898solution to the problem in order to be paid for their
899investments.
900     (2)  The Legislature recognizes that all of the factors
901listed in this section lead to condominiums becoming distressed,
902resulting in detriment to the unit owners and the condominium
903association on account of the resulting shortage of assessment
904moneys available to support the financial requirements for
905proper maintenance of the condominium. Such shortage and the
906resulting lack of proper maintenance further erode property
907values. The Legislature finds that individuals and entities
908within Florida and in other states have expressed interest in
909purchasing unsold inventory in one or more condominium projects,
910but are reticent to do so because of accompanying liabilities
911inherited from the original developer, which are by definition
912imputed to the successor purchaser, including a foreclosing
913mortgagee. This results in the potential purchaser having
914unknown and unquantifiable risks, and potential successor
915purchasers are unwilling to accept such risks. The result is
916that condominium projects stagnate, leaving all parties involved
917at an impasse without the ability to find a solution.
918     (3)  The Legislature finds and declares that it is the
919public policy of this state to protect the interests of
920developers, lenders, unit owners, and condominium associations
921with regard to distressed condominiums, and that there is a need
922for relief from certain provisions of the Florida Condominium
923Act geared toward enabling economic opportunities within these
924condominiums for successor purchasers, including foreclosing
925mortgagees. Such relief would benefit existing unit owners and
926condominium associations. The Legislature further finds and
927declares that this situation cannot be open-ended without
928potentially prejudicing the rights of unit owners and
929condominium associations, and thereby declares that the
930provisions of this part shall be used by purchasers of
931condominium inventory for a specific and defined period.
932     718.703  Definitions.-As used in this part, the term:
933     (1)  "Bulk assignee" means a person who:
934     (a)  Acquires more than seven condominium parcels as set
935forth in s. 718.707; and
936     (b)  Receives an assignment of some or all of the rights of
937the developer as are set forth in the declaration of condominium
938or in this chapter by a written instrument recorded as an
939exhibit to the deed or as a separate instrument in the public
940records of the county in which the condominium is located.
941     (2)  "Bulk buyer" means a person who acquires more than
942seven condominium parcels as set forth in s. 718.707 but who
943does not receive an assignment of any developer rights other
944than the right to conduct sales, leasing, and marketing
945activities within the condominium.
946     718.704  Assignment of developer rights to and assumption
947of developer rights by bulk assignee; bulk buyer.-
948     (1)  A bulk assignee shall be deemed to have assumed and is
949liable for all duties and responsibilities of the developer
950under the declaration and this chapter, except:
951     (a)  Warranties of the developer under s. 718.203(1) or s.
952718.618, except for design, construction, development, or repair
953work performed by or on behalf of such bulk assignee.
954     (b)  The obligation to:
955     1.  Fund converter reserves under s. 718.618 for a unit
956which was not acquired by the bulk assignee; or
957     2.  Provide converter warranties on any portion of the
958condominium property except as may be expressly provided by the
959bulk assignee in the contract for purchase and sale executed
960with a purchaser and pertaining to any design, construction,
961development, or repair work performed by or on behalf of the
962bulk assignee.
963     (c)  The requirement to provide the association with a
964cumulative audit of the association's finances from the date of
965formation of the condominium association as required by s.
966718.301. However, the bulk assignee shall provide an audit for
967the period for which the bulk assignee elects a majority of the
968members of the board of administration.
969     (d)  Any liability arising out of or in connection with
970actions taken by the board of administration or the developer-
971appointed directors before the bulk assignee elects a majority
972of the members of the board of administration.
973     (e)  Any liability for or arising out of the developer's
974failure to fund previous assessments or to resolve budgetary
975deficits in relation to a developer's right to guarantee
976assessments, except as otherwise provided in subsection (2).
977
978Further, the bulk assignee is responsible for delivering
979documents and materials in accordance with s. 718.705(3). A bulk
980assignee may expressly assume some or all of the obligations of
981the developer described in paragraphs (a)-(e).
982     (2)  A bulk assignee receiving the assignment of the rights
983of the developer to guarantee the level of assessments and fund
984budgetary deficits pursuant to s. 718.116 shall be deemed to
985have assumed and is liable for all obligations of the developer
986with respect to such guarantee, including any applicable funding
987of reserves to the extent required by law, for as long as the
988guarantee remains in effect. A bulk assignee not receiving an
989assignment of the right of the developer to guarantee the level
990of assessments and fund budgetary deficits pursuant to s.
991718.116 or a bulk buyer is not deemed to have assumed and is not
992liable for the obligations of the developer with respect to such
993guarantee, but is responsible for payment of assessments in the
994same manner as all other owners of condominium parcels.
995     (3)  A bulk buyer is liable for the duties and
996responsibilities of the developer under the declaration and this
997chapter only to the extent provided in this part, together with
998any other duties or responsibilities of the developer expressly
999assumed in writing by the bulk buyer.
1000     (4)  An acquirer of condominium parcels is not considered a
1001bulk assignee or a bulk buyer if the transfer to such acquirer
1002was made with the intent to hinder, delay, or defraud any
1003purchaser, unit owner, or the association, or if the acquirer is
1004a person who would constitute an insider under s. 726.102(7).
1005     (5)  An assignment of developer rights to a bulk assignee
1006may be made by the developer, a previous bulk assignee, or a
1007court of competent jurisdiction acting on behalf of the
1008developer or the previous bulk assignee. At any particular time,
1009there may be no more than one bulk assignee within a
1010condominium, but there may be more than one bulk buyer. If more
1011than one acquirer of condominium parcels receives an assignment
1012of developer rights from the same person, the bulk assignee is
1013the acquirer whose instrument of assignment is recorded first in
1014applicable public records.
1015     718.705  Board of administration; transfer of control.-
1016     (1)  For purposes of determining the timing for transfer of
1017control of the board of administration of the association to
1018unit owners other than the developer under s. 718.301(1)(a) or
1019(b), if a bulk assignee is entitled to elect a majority of the
1020members of the board, a condominium parcel acquired by the bulk
1021assignee shall not be deemed to be conveyed to a purchaser, or
1022to be owned by an owner other than the developer, until such
1023condominium parcel is conveyed to an owner who is not a bulk
1024assignee.
1025     (2)  Unless control of the board of administration of the
1026association has already been relinquished pursuant to s.
1027718.301(1), the bulk assignee is obligated to relinquish control
1028of the association in accordance with s. 718.301 and this part.
1029     (3)  When a bulk assignee relinquishes control of the board
1030of administration as set forth in s. 718.301, the bulk assignee
1031shall deliver all of those items required by s. 718.301(4).
1032However, the bulk assignee is not required to deliver items and
1033documents not in the possession of the bulk assignee during the
1034period during which the bulk assignee was the owner of
1035condominium parcels. In conjunction with the acquisition of
1036condominium parcels, a bulk assignee shall undertake a good
1037faith effort to obtain the documents and materials required to
1038be provided to the association pursuant to s. 718.301(4). To the
1039extent the bulk assignee is not able to obtain all of such
1040documents and materials, the bulk assignee shall certify in
1041writing to the association the names or descriptions of the
1042documents and materials that were not obtainable by the bulk
1043assignee. Delivery of the certificate relieves the bulk assignee
1044of responsibility for the delivery of the documents and
1045materials referenced in the certificate as otherwise required
1046under ss. 718.112 and 718.301 and this part. The responsibility
1047of the bulk assignee for the audit required by s. 718.301(4)
1048shall commence as of the date on which the bulk assignee elected
1049a majority of the members of the board of administration.
1050     (4)  If a conflict arises between the provisions or
1051application of this section and s. 718.301, this section shall
1052prevail.
1053     (5)  Failure of a bulk assignee or bulk buyer to comply
1054with all the requirements contained in this part shall result in
1055the loss of any and all protections or exemptions provided under
1056this part.
1057     718.706  Specific provisions pertaining to offering of
1058units by a bulk assignee or bulk buyer.-
1059     (1)  Before offering any units for sale or for lease for a
1060term exceeding 5 years, a bulk assignee or bulk buyer must file
1061the following documents with the division and provide such
1062documents to a prospective purchaser:
1063     (a)  An updated prospectus or offering circular, or a
1064supplement to the prospectus or offering circular, filed by the
1065creating developer prepared in accordance with s. 718.504, which
1066shall include the form of contract for purchase and sale in
1067compliance with s. 718.503(2).
1068     (b)  An updated Frequently Asked Questions and Answers
1069sheet.
1070     (c)  The executed escrow agreement if required under s.
1071718.202.
1072     (d)  The financial information required by s. 718.111(13).
1073However, if a financial information report does not exist for
1074the fiscal year before acquisition of title by the bulk assignee
1075or bulk buyer, or accounting records cannot be obtained in good
1076faith by the bulk assignee or bulk buyer which would permit
1077preparation of the required financial information report, the
1078bulk assignee or bulk buyer is excused from the requirement of
1079this paragraph. However, the bulk assignee or bulk buyer must
1080include in the purchase contract the following statement in
1081conspicuous type:
1082
1083     THE FINANCIAL INFORMATION REPORT REQUIRED UNDER
1084SECTION 718.111(13), FLORIDA STATUTES, FOR THE
1085IMMEDIATELY PRECEDING FISCAL YEAR OF THE ASSOCIATION
1086IS NOT AVAILABLE OR CANNOT BE CREATED BY THE SELLER AS
1087A RESULT OF INSUFFICIENT ACCOUNTING RECORDS OF THE
1088ASSOCIATION.
1089
1090     (2)  Before offering any units for sale or for lease for a
1091term exceeding 5 years, a bulk assignee must file with the
1092division and provide to a prospective purchaser a disclosure
1093statement that must include, but is not limited to:
1094     (a)  A description to the purchaser of any rights of the
1095developer which have been assigned to the bulk assignee.
1096     (b)  The following statement in conspicuous type:
1097
1098     SELLER IS NOT OBLIGATED FOR ANY WARRANTIES OF THE
1099DEVELOPER UNDER SECTION 718.203(1) OR SECTION 718.618,
1100FLORIDA STATUTES, AS APPLICABLE, EXCEPT FOR DESIGN,
1101CONSTRUCTION, DEVELOPMENT, OR REPAIR WORK PERFORMED BY
1102OR ON BEHALF OF SELLER.
1103
1104     (c)  If the condominium is a conversion subject to part VI,
1105the following statement in conspicuous type:
1106
1107     SELLER HAS NO OBLIGATION TO FUND CONVERTER
1108RESERVES OR TO PROVIDE CONVERTER WARRANTIES UNDER
1109SECTION 718.618, FLORIDA STATUTES, ON ANY PORTION OF
1110THE CONDOMINIUM PROPERTY EXCEPT AS MAY BE EXPRESSLY
1111REQUIRED OF THE SELLER IN THE CONTRACT FOR PURCHASE
1112AND SALE EXECUTED BY THE SELLER AND THE PREVIOUS
1113DEVELOPER AND PERTAINING TO ANY DESIGN, CONSTRUCTION,
1114DEVELOPMENT, OR REPAIR WORK PERFORMED BY OR ON BEHALF
1115OF THE SELLER.
1116
1117     (3)  In addition to the requirements set forth in
1118subsection (1), a bulk assignee or bulk buyer must comply with
1119the nondeveloper disclosure requirements set forth in s.
1120718.503(2) before offering any units for sale or for lease for a
1121term exceeding 5 years.
1122     (4)  A bulk assignee, while in control of the board of
1123administration of the association, may not authorize, on behalf
1124of the association:
1125     (a)  The waiver of reserves or the reduction of funding of
1126the reserves in accordance with s. 718.112(2)(f)2., unless
1127approved by a majority of the voting interests not controlled by
1128the developer, bulk assignee, or bulk buyer; or
1129     (b)  The use of reserve expenditures for other purposes in
1130accordance with s. 718.112(2)(f)3., unless approved by a
1131majority of the voting interests not controlled by the
1132developer, bulk assignee, or bulk buyer.
1133     (5)  A bulk assignee, while in control of the board of
1134administration of the association, must comply with the
1135requirements imposed upon developers to transfer control of the
1136association to the unit owners in accordance with s. 718.301.
1137     (6)  A bulk assignee or bulk buyer must comply with all the
1138requirements of s. 718.302 regarding any contracts entered into
1139by the association during the period the bulk assignee or bulk
1140buyer maintains control of the board of administration. Unit
1141owners shall be afforded all the protections contained in s.
1142718.302 regarding agreements entered into by the association
1143before unit owners other than the developer, bulk assignee, or
1144bulk buyer elected a majority of the board of administration.
1145     (7)  A bulk buyer must comply with the requirements
1146contained in the declaration regarding any transfer of a unit,
1147including sales, leases, and subleases. A bulk buyer is not
1148entitled to any exemptions afforded a developer or successor
1149developer under this chapter regarding any transfer of a unit,
1150including sales, leases, or subleases.
1151     718.707  Time limitation for classification as bulk
1152assignee or bulk buyer.-A person acquiring condominium parcels
1153may not be classified as a bulk assignee or bulk buyer unless
1154the condominium parcels were acquired before July 1, 2011. The
1155date of such acquisition shall be determined by the date of
1156recording of a deed or other instrument of conveyance for such
1157parcels in the public records of the county in which the
1158condominium is located or by the date of issuance of a
1159certificate of title in a foreclosure proceeding with respect to
1160such condominium parcels.
1161     718.708  Liability of developers and others.-An assignment
1162of developer rights to a bulk assignee or bulk buyer does not
1163release the developer from any liabilities under the declaration
1164or this chapter. This part does not limit the liability of the
1165developer for claims brought by unit owners, bulk assignees, or
1166bulk buyers for violations of this chapter by the developer,
1167unless specifically excluded in this part. Nothing contained
1168within this part waives, releases, compromises, or limits the
1169liability of contractors, subcontractors, materialmen,
1170manufacturers, architects, engineers, or any participant in the
1171design or construction of a condominium for any claim brought by
1172an association, unit owners, bulk assignees, or bulk buyers
1173arising from the design of the condominium, construction
1174defects, misrepresentations associated with condominium
1175property, or violations of this chapter, unless specifically
1176excluded in this part.
1177     Section 10.  Subsection (5) of section 719.1055, Florida
1178Statutes, is amended to read:
1179     719.1055  Amendment of cooperative documents; alteration
1180and acquisition of property.-
1181     (5)  There shall be a provision in the bylaws that a
1182certificate of compliance from a licensed electrical contractor
1183or electrician may be accepted by the association's board as
1184evidence of compliance of the cooperative units with the
1185applicable fire and life safety code. Notwithstanding the
1186provisions of chapter 633 or of any other code, statute,
1187ordinance, administrative rule, or regulation, or any
1188interpretation of the foregoing, a cooperative or unit owner is
1189not obligated to retrofit the common elements, common areas,
1190association-owned property, or units of a residential
1191cooperative with a fire sprinkler system or any other form of
1192engineered lifesafety life safety system in a building that has
1193been certified for occupancy by the applicable governmental
1194entity, if the unit owners have voted to forego such
1195retrofitting and engineered lifesafety life safety system by the
1196affirmative vote of two-thirds of all voting interests in the
1197affected cooperative. However, a cooperative may not forego the
1198retrofitting with a fire sprinkler system of common areas in a
1199high-rise building. For purposes of this subsection, the term
1200"high-rise building" means a building that is greater than 75
1201feet in height where the building height is measured from the
1202lowest level of fire department access to the floor of the
1203highest occupiable story. For purposes of this subsection, the
1204term "common areas" means any enclosed hallway, corridor, lobby,
1205stairwell, or entryway. In no event shall the local authority
1206having jurisdiction require completion of retrofitting of common
1207areas with a sprinkler system or other form of engineered
1208lifesafety system before the end of 2019 2014.
1209     (a)  A vote to forego retrofitting may be obtained by
1210limited proxy or by a ballot personally cast at a duly called
1211membership meeting, or by execution of a written consent by the
1212member, and shall be effective upon the recording of a
1213certificate attesting to such vote in the public records of the
1214county where the cooperative is located. The association shall
1215mail or, hand deliver, or electronically transmit to each unit
1216owner written notice at least 14 days prior to such membership
1217meeting in which the vote to forego retrofitting of the required
1218fire sprinkler system or any other form of engineered lifesafety
1219system is to take place. Within 30 days after the association's
1220opt-out vote, notice of the results of the opt-out vote shall be
1221mailed or, hand delivered, or electronically transmitted to all
1222unit owners. Evidence of compliance with this 30-day notice
1223shall be made by an affidavit executed by the person providing
1224the notice and filed among the official records of the
1225association. After such notice is provided to each owner, a copy
1226of such notice shall be provided by the current owner to a new
1227owner prior to closing and shall be provided by a unit owner to
1228a renter prior to signing a lease.
1229     (b) If there has been a previous vote approving the
1230association to forego retrofitting, a vote to require
1231retrofitting may be obtained at a special meeting of the unit
1232owners called by a petition of least 10 percent of the voting
1233interests. Such vote may only be called for once every 3 years.
1234Notice shall be provided as required for any regularly called
1235meeting of the unit owners, and the notice shall state the
1236purpose of the meeting. Electronic transmission may not be used
1237as a method of giving notice of a meeting called in whole or in
1238part for this purpose.
1239     (c)(b)  As part of the information collected annually from
1240cooperatives, the division shall require associations to report
1241the membership vote and recording of a certificate under this
1242subsection and, if retrofitting has been undertaken, the per-
1243unit cost of such work. The division shall annually report to
1244the Division of State Fire Marshal of the Department of
1245Financial Services the number of cooperatives that have elected
1246to forego retrofitting.
1247     Section 11.  Subsection (2) of section 553.509, Florida
1248Statutes, is repealed.
1249     Section 12.  This act shall take effect upon becoming a
1250law.


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