Bill Text: FL S1222 | 2010 | Regular Session | Introduced
Bill Title: Condominiums [CPSC]
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-03-03 - CS combines this bill with SB 1196 -SJ 00189; CS by Regulated Industries; YEAS 8 NAYS 0 -SJ 00189; Original bill laid on Table, refer to combined CS/CS/CS/SB 1196 (Ch. 2010-174) -SJ 00189 [S1222 Detail]
Download: Florida-2010-S1222-Introduced.html
Florida Senate - 2010 SB 1222
By Senator Ring
32-01206A-10 20101222__
1 A bill to be entitled
2 An act relating to condominiums; creating s. 627.714,
3 F.S.; requiring that coverage under a unit owner’s
4 policy for certain assessments include at least a
5 minimum amount of loss assessment coverage; requiring
6 that every property insurance policy to an individual
7 unit owner contain a specified provision; amending s.
8 633.0215, F.S.; providing an exemption for certain
9 condominiums from installing a manual fire alarm
10 system as required in the Life Safety Code if certain
11 conditions are met; amending s. 718.103, F.S.;
12 revising the definition of the term “developer” to
13 exclude a bulk assignee or bulk buyer; amending s.
14 718.111, F.S.; requiring that adequate property
15 insurance be based upon the replacement cost of the
16 property to be insured as determined by an independent
17 appraisal or update of a prior appraisal; requiring
18 that such replacement cost be determined at least once
19 within a specified period; providing means by which an
20 association may provide adequate property insurance;
21 prohibiting such coverage or program from existing
22 beyond a specified date; authorizing an association to
23 consider deductibles when determining an adequate
24 amount of property insurance; providing that failure
25 to maintain adequate property insurance constitutes a
26 breach of fiduciary duty by the members of the board
27 of directors of an association; revising the
28 procedures for the board to establish the amount of
29 deductibles; requiring that an association controlled
30 by unit owners operating as a residential condominium
31 use its best efforts to obtain and maintain adequate
32 property insurance to protect the association and
33 certain property; requiring that every property
34 insurance policy issued or renewed on or after a
35 specified date provide certain coverage; excluding
36 certain items from such requirement; providing that
37 excluded items and any insurance thereupon are the
38 responsibility of the unit owner; requiring that
39 condominium unit owners’ policies conform to certain
40 provisions of state law; deleting provisions relating
41 to certain hazard and casualty insurance policies;
42 conforming provisions to changes made by the act;
43 amending s. 718.112, F.S.; conforming cross
44 references; revising requirements for the
45 reappointment of certain board members; revising board
46 eligibility requirements; revising notice requirements
47 for board candidates; establishing requirements for
48 newly elected board members; deleting a provision
49 prohibiting an association from foregoing the
50 retrofitting with a fire sprinkler system of common
51 areas in a high-rise building; prohibiting local
52 authorities having jurisdiction from requiring
53 retrofitting with a sprinkler system or other
54 engineered lifesafety system before a specified date;
55 providing requirements for a special meeting of unit
56 owners that may be called every 3 years in order to
57 vote to forgo retrofitting of the sprinkler system or
58 other engineered lifesafety system; providing meeting
59 notice requirements; providing that certain directors
60 and officers delinquent in the payment of any fee,
61 fine, or regular or special assessments shall be
62 deemed to have abandoned their office; amending s.
63 718.115, F.S.; requiring that certain services
64 obtained pursuant to a bulk contract as provided in
65 the declaration be deemed a common expense; amending
66 s. 718.301, F.S.; revising conditions under which unit
67 owners other than the developer may elect not less
68 than a majority of the members of the board of
69 administration of an association; creating part VII of
70 ch. 718, F.S., relating to distressed condominium
71 relief; providing a short title; providing legislative
72 findings and intent; defining the terms “bulk
73 assignee” and “bulk buyer”; providing for the
74 assignment of developer rights to and the assumption
75 of developer rights by a bulk assignee; specifying
76 liabilities of bulk assignees and bulk buyers;
77 providing exceptions; providing additional
78 responsibilities of bulk assignees and bulk buyers;
79 authorizing certain entities to assign developer
80 rights to a bulk assignee; limiting the number of bulk
81 assignees at any given time; providing for the
82 transfer of control of a board of administration;
83 providing effects of such transfer on parcels acquired
84 by a bulk assignee; providing obligations of a bulk
85 assignee upon the transfer of control of a board of
86 administration; requiring that a bulk assignee certify
87 certain information in writing; providing for the
88 resolution of a conflict between specified provisions
89 of state law; providing that the failure of a bulk
90 assignee or bulk buyer to comply with specified
91 provisions of state law results in the loss of certain
92 protections and exemptions; requiring that a bulk
93 assignee or bulk buyer file certain information with
94 the Division of Florida Condominiums, Timeshares, and
95 Mobile Homes of the Department of Business and
96 Professional Regulation before offering any units for
97 sale or lease in excess of a specified term; requiring
98 that a copy of such information be provided to a
99 prospective purchaser; requiring that certain
100 contracts and disclosure statements contain specified
101 statements; requiring that a bulk assignee or bulk
102 buyer comply with certain disclosure requirements;
103 prohibiting a bulk assignee from taking certain
104 actions on behalf of an association while the bulk
105 assignee is in control of the board of administration
106 of the association and requiring that such bulk
107 assignee comply with certain requirements; requiring
108 that a bulk assignee or bulk buyer comply with certain
109 requirements regarding certain contracts; providing
110 unit owners with specified protections regarding
111 certain contracts; requiring that a bulk buyer comply
112 with certain requirements regarding the transfer of a
113 unit; prohibiting a person from being classified as a
114 bulk assignee or bulk buyer unless condominium parcels
115 were acquired before a specified date; providing for
116 the determination of the date of acquisition of a
117 parcel; providing that the assignment of developer
118 rights to a bulk assignee or bulk buyer does not
119 release a developer from certain liabilities;
120 preserving certain liabilities for certain parties;
121 repealing s. 553.509(2), F.S., relating to the
122 requirement that certain residential family dwellings
123 have at least one public elevator that is capable of
124 operating on an alternate power source for emergency
125 purposes; providing an effective date.
126
127 Be It Enacted by the Legislature of the State of Florida:
128
129 Section 1. Section 627.714, Florida Statutes, is created to
130 read:
131 627.714 Residential condominium unit owner coverage; loss
132 assessment coverage required; excess coverage provision
133 required.—For policies issued or renewed on or after July 1,
134 2010, coverage under a unit owner’s residential property policy
135 shall include property loss assessment coverage of at least
136 $2,000 for all assessments made as a result of the same direct
137 loss to the property, regardless of the number of assessments,
138 owned by all members of the association collectively when such
139 loss is of the type of loss covered by the unit owner’s
140 residential property insurance policy, to which a deductible
141 shall apply of no more than $250 per direct property loss. If a
142 deductible was or will be applied to other property loss
143 sustained by the unit owner resulting from the same direct loss
144 to the property, no deductible shall apply to the loss
145 assessment coverage. Every individual unit owner’s residential
146 property policy must contain a provision stating that the
147 coverage afforded by such policy is excess coverage over the
148 amount recoverable under any other policy covering the same
149 property.
150 Section 2. Subsection (13) is added to section 633.0215,
151 Florida Statutes, to read:
152 633.0215 Florida Fire Prevention Code.—
153 (13) A condominium that is one or two stories in height and
154 has an exterior means of egress corridor is exempt from
155 installing a manual fire alarm system as required in s. 9.6 of
156 the most recent edition of the Life Safety Code adopted in the
157 Florida Fire Prevention Code.
158 Section 3. Subsection (16) of section 718.103, Florida
159 Statutes, is amended to read:
160 718.103 Definitions.—As used in this chapter, the term:
161 (16) “Developer” means a person who creates a condominium
162 or offers condominium parcels for sale or lease in the ordinary
163 course of business, but does not include:
164 (a) An owner or lessee of a condominium or cooperative unit
165 who has acquired the unit for his or her own occupancy;, nor
166 does it include
167 (b) A cooperative association which creates a condominium
168 by conversion of an existing residential cooperative after
169 control of the association has been transferred to the unit
170 owners if, following the conversion, the unit owners will be the
171 same persons who were unit owners of the cooperative and no
172 units are offered for sale or lease to the public as part of the
173 plan of conversion;.
174 (c) A bulk assignee or bulk buyer as defined in s. 718.703;
175 or
176 (d) A state, county, or municipal entity is not a developer
177 for any purposes under this act when it is acting as a lessor
178 and not otherwise named as a developer in the declaration of
179 condominium association.
180 Section 4. Paragraphs (a), (b), (c), (d), (f), (g), (j),
181 and (n) of subsection (11) of section 718.111, Florida Statutes,
182 are amended to read:
183 718.111 The association.—
184 (11) INSURANCE.—In order to protect the safety, health, and
185 welfare of the people of the State of Florida and to ensure
186 consistency in the provision of insurance coverage to
187 condominiums and their unit owners, this subsection applies to
188 every residential condominium in the state, regardless of the
189 date of its declaration of condominium. It is the intent of the
190 Legislature to encourage lower or stable insurance premiums for
191 associations described in this subsection.
192 (a) Adequate property hazard insurance, regardless of any
193 requirement in the declaration of condominium for coverage by
194 the association for full insurable value, replacement cost, or
195 similar coverage, shall be based upon the replacement cost of
196 the property to be insured as determined by an independent
197 insurance appraisal or update of a prior appraisal. The
198 replacement cost full insurable value shall be determined at
199 least once every 36 months.
200 1. An association or group of associations may provide
201 adequate property hazard insurance through a self-insurance fund
202 that complies with the requirements of ss. 624.460-624.488.
203 2. The association may also provide adequate property
204 hazard insurance coverage for a group of no fewer than three
205 communities created and operating under this chapter, chapter
206 719, chapter 720, or chapter 721 by obtaining and maintaining
207 for such communities insurance coverage sufficient to cover an
208 amount equal to the probable maximum loss for the communities
209 for a 250-year windstorm event. Such probable maximum loss must
210 be determined through the use of a competent model that has been
211 accepted by the Florida Commission on Hurricane Loss Projection
212 Methodology. No policy or program providing such coverage shall
213 be issued or renewed after July 1, 2008, unless it has been
214 reviewed and approved by the Office of Insurance Regulation. The
215 review and approval shall include approval of the policy and
216 related forms pursuant to ss. 627.410 and 627.411, approval of
217 the rates pursuant to s. 627.062, a determination that the loss
218 model approved by the commission was accurately and
219 appropriately applied to the insured structures to determine the
220 250-year probable maximum loss, and a determination that
221 complete and accurate disclosure of all material provisions is
222 provided to condominium unit owners prior to execution of the
223 agreement by a condominium association.
224 3. When determining the adequate amount of property hazard
225 insurance coverage, the association may consider deductibles as
226 determined by this subsection.
227 (b) If an association is a developer-controlled
228 association, the association shall exercise its best efforts to
229 obtain and maintain insurance as described in paragraph (a).
230 Failure to obtain and maintain adequate property hazard
231 insurance during any period of developer control constitutes a
232 breach of fiduciary responsibility by the developer-appointed
233 members of the board of directors of the association, unless the
234 members can show that despite such failure, they have made their
235 best efforts to maintain the required coverage.
236 (c) Policies may include deductibles as determined by the
237 board.
238 1. The deductibles shall be consistent with industry
239 standards and prevailing practice for communities of similar
240 size and age, and having similar construction and facilities in
241 the locale where the condominium property is situated.
242 2. The deductibles may be based upon available funds,
243 including reserve accounts, or predetermined assessment
244 authority at the time the insurance is obtained.
245 3. The board shall establish the amount of deductibles
246 based upon the level of available funds and predetermined
247 assessment authority at a meeting of the board. Such meeting
248 shall be open to all unit owners in the manner set forth in s.
249 718.112(2)(e). The notice of such meeting must state the
250 proposed deductible and the available funds and the assessment
251 authority relied upon by the board and estimate any potential
252 assessment amount against each unit, if any. The meeting
253 described in this paragraph may be held in conjunction with a
254 meeting to consider the proposed budget or an amendment thereto.
255 (d) An association controlled by unit owners operating as a
256 residential condominium shall use its best efforts to obtain and
257 maintain adequate property insurance to protect the association,
258 the association property, the common elements, and the
259 condominium property that is required to be insured by the
260 association pursuant to this subsection.
261 (f) Every property hazard insurance policy issued or
262 renewed on or after January 1, 2009, for the purpose of
263 protecting the condominium shall provide primary coverage for:
264 1. All portions of the condominium property as originally
265 installed or replacement of like kind and quality, in accordance
266 with the original plans and specifications.
267 2. All alterations or additions made to the condominium
268 property or association property pursuant to s. 718.113(2).
269 3. The coverage shall exclude all personal property within
270 the unit or limited common elements, and floor, wall, and
271 ceiling coverings, electrical fixtures, appliances, water
272 heaters, water filters, built-in cabinets and countertops, and
273 window treatments, including curtains, drapes, blinds, hardware,
274 and similar window treatment components, or replacements of any
275 of the foregoing which are located within the boundaries of the
276 unit and serve only such unit. Such property and any insurance
277 thereupon shall be the responsibility of the unit owner.
278 (g) A condominium unit owner’s policy shall conform to the
279 requirements of s. 627.714. Every hazard insurance policy issued
280 or renewed on or after January 1, 2009, to an individual unit
281 owner must contain a provision stating that the coverage
282 afforded by such policy is excess coverage over the amount
283 recoverable under any other policy covering the same property.
284 Such policies must include special assessment coverage of no
285 less than $2,000 per occurrence. An insurance policy issued to
286 an individual unit owner providing such coverage does not
287 provide rights of subrogation against the condominium
288 association operating the condominium in which such individual’s
289 unit is located.
290 1. All improvements or additions to the condominium
291 property that benefit fewer than all unit owners shall be
292 insured by the unit owner or owners having the use thereof, or
293 may be insured by the association at the cost and expense of the
294 unit owners having the use thereof.
295 2. The association shall require each owner to provide
296 evidence of a currently effective policy of hazard and liability
297 insurance upon request, but not more than once per year. Upon
298 the failure of an owner to provide a certificate of insurance
299 issued by an insurer approved to write such insurance in this
300 state within 30 days after the date on which a written request
301 is delivered, the association may purchase a policy of insurance
302 on behalf of an owner. The cost of such a policy, together with
303 reconstruction costs undertaken by the association but which are
304 the responsibility of the unit owner, may be collected in the
305 manner provided for the collection of assessments in s. 718.116.
306 1.3. All reconstruction work after a property casualty loss
307 shall be undertaken by the association except as otherwise
308 authorized in this section. A unit owner may undertake
309 reconstruction work on portions of the unit with the prior
310 written consent of the board of administration. However, such
311 work may be conditioned upon the approval of the repair methods,
312 the qualifications of the proposed contractor, or the contract
313 that is used for that purpose. A unit owner shall obtain all
314 required governmental permits and approvals prior to commencing
315 reconstruction.
316 2.4. Unit owners are responsible for the cost of
317 reconstruction of any portions of the condominium property for
318 which the unit owner is required to carry property casualty
319 insurance, and any such reconstruction work undertaken by the
320 association shall be chargeable to the unit owner and
321 enforceable as an assessment pursuant to s. 718.116. The
322 association must be an additional named insured and loss payee
323 on all casualty insurance policies issued to unit owners in the
324 condominium operated by the association.
325 3.5. A multicondominium association may elect, by a
326 majority vote of the collective members of the condominiums
327 operated by the association, to operate such condominiums as a
328 single condominium for purposes of insurance matters, including,
329 but not limited to, the purchase of the property hazard
330 insurance required by this section and the apportionment of
331 deductibles and damages in excess of coverage. The election to
332 aggregate the treatment of insurance premiums, deductibles, and
333 excess damages constitutes an amendment to the declaration of
334 all condominiums operated by the association, and the costs of
335 insurance shall be stated in the association budget. The
336 amendments shall be recorded as required by s. 718.110.
337 (j) Any portion of the condominium property required to be
338 insured by the association against property casualty loss
339 pursuant to paragraph (f) which is damaged by casualty shall be
340 reconstructed, repaired, or replaced as necessary by the
341 association as a common expense. All property hazard insurance
342 deductibles, uninsured losses, and other damages in excess of
343 property hazard insurance coverage under the property hazard
344 insurance policies maintained by the association are a common
345 expense of the condominium, except that:
346 1. A unit owner is responsible for the costs of repair or
347 replacement of any portion of the condominium property not paid
348 by insurance proceeds, if such damage is caused by intentional
349 conduct, negligence, or failure to comply with the terms of the
350 declaration or the rules of the association by a unit owner, the
351 members of his or her family, unit occupants, tenants, guests,
352 or invitees, without compromise of the subrogation rights of any
353 insurer as set forth in paragraph (g).
354 2. The provisions of subparagraph 1. regarding the
355 financial responsibility of a unit owner for the costs of
356 repairing or replacing other portions of the condominium
357 property also apply to the costs of repair or replacement of
358 personal property of other unit owners or the association, as
359 well as other property, whether real or personal, which the unit
360 owners are required to insure under paragraph (g).
361 3. To the extent the cost of repair or reconstruction for
362 which the unit owner is responsible under this paragraph is
363 reimbursed to the association by insurance proceeds, and, to the
364 extent the association has collected the cost of such repair or
365 reconstruction from the unit owner, the association shall
366 reimburse the unit owner without the waiver of any rights of
367 subrogation.
368 4. The association is not obligated to pay for
369 reconstruction or repairs of property casualty losses as a
370 common expense if the property casualty losses were known or
371 should have been known to a unit owner and were not reported to
372 the association until after the insurance claim of the
373 association for that property casualty was settled or resolved
374 with finality, or denied on the basis that it was untimely
375 filed.
376 (n) The association is not obligated to pay for any
377 reconstruction or repair expenses due to property casualty loss
378 to any improvements installed by a current or former owner of
379 the unit or by the developer if the improvement benefits only
380 the unit for which it was installed and is not part of the
381 standard improvements installed by the developer on all units as
382 part of original construction, whether or not such improvement
383 is located within the unit. This paragraph does not relieve any
384 party of its obligations regarding recovery due under any
385 insurance implemented specifically for any such improvements.
386 Section 5. Paragraphs (b), (d), (l), and (n) of subsection
387 (2) of section 718.112, Florida Statutes, are amended to read:
388 718.112 Bylaws.—
389 (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
390 following and, if they do not do so, shall be deemed to include
391 the following:
392 (b) Quorum; voting requirements; proxies.—
393 1. Unless a lower number is provided in the bylaws, the
394 percentage of voting interests required to constitute a quorum
395 at a meeting of the members shall be a majority of the voting
396 interests. Unless otherwise provided in this chapter or in the
397 declaration, articles of incorporation, or bylaws, and except as
398 provided in sub-subparagraph subparagraph (d)3.a., decisions
399 shall be made by owners of a majority of the voting interests
400 represented at a meeting at which a quorum is present.
401 2. Except as specifically otherwise provided herein, after
402 January 1, 1992, unit owners may not vote by general proxy, but
403 may vote by limited proxies substantially conforming to a
404 limited proxy form adopted by the division. No voting interest
405 or consent right allocated to a unit owned by the association
406 shall be exercised or considered for any purpose, whether for a
407 quorum, an election, or otherwise. Limited proxies and general
408 proxies may be used to establish a quorum. Limited proxies shall
409 be used for votes taken to waive or reduce reserves in
410 accordance with subparagraph (f)2.; for votes taken to waive the
411 financial reporting requirements of s. 718.111(13); for votes
412 taken to amend the declaration pursuant to s. 718.110; for votes
413 taken to amend the articles of incorporation or bylaws pursuant
414 to this section; and for any other matter for which this chapter
415 requires or permits a vote of the unit owners. Except as
416 provided in paragraph (d), after January 1, 1992, no proxy,
417 limited or general, shall be used in the election of board
418 members. General proxies may be used for other matters for which
419 limited proxies are not required, and may also be used in voting
420 for nonsubstantive changes to items for which a limited proxy is
421 required and given. Notwithstanding the provisions of this
422 subparagraph, unit owners may vote in person at unit owner
423 meetings. Nothing contained herein shall limit the use of
424 general proxies or require the use of limited proxies for any
425 agenda item or election at any meeting of a timeshare
426 condominium association.
427 3. Any proxy given shall be effective only for the specific
428 meeting for which originally given and any lawfully adjourned
429 meetings thereof. In no event shall any proxy be valid for a
430 period longer than 90 days after the date of the first meeting
431 for which it was given. Every proxy is revocable at any time at
432 the pleasure of the unit owner executing it.
433 4. A member of the board of administration or a committee
434 may submit in writing his or her agreement or disagreement with
435 any action taken at a meeting that the member did not attend.
436 This agreement or disagreement may not be used as a vote for or
437 against the action taken and may not be used for the purposes of
438 creating a quorum.
439 5. When any of the board or committee members meet by
440 telephone conference, those board or committee members attending
441 by telephone conference may be counted toward obtaining a quorum
442 and may vote by telephone. A telephone speaker must be used so
443 that the conversation of those board or committee members
444 attending by telephone may be heard by the board or committee
445 members attending in person as well as by any unit owners
446 present at a meeting.
447 (d) Unit owner meetings.—
448 1. There shall be an annual meeting of the unit owners held
449 at the location provided in the association bylaws and, if the
450 bylaws are silent as to the location, the meeting shall be held
451 within 45 miles of the condominium property. However, such
452 distance requirement does not apply to an association governing
453 a timeshare condominium. Unless the bylaws provide otherwise, a
454 vacancy on the board caused by the expiration of a director’s
455 term shall be filled by electing a new board member, and the
456 election shall be by secret ballot; however, if the number of
457 vacancies equals or exceeds the number of candidates, no
458 election is required. Except in a timeshare condominium, the
459 terms of all members of the board shall expire at the annual
460 meeting and such board members may stand for reelection unless
461 otherwise permitted by the bylaws. In the event that the bylaws
462 permit staggered terms of no more than 2 years and upon approval
463 of a majority of the total voting interests, the association
464 board members may serve 2-year staggered terms. If the number no
465 person is interested in or demonstrates an intention to run for
466 the position of a board members member whose terms have term has
467 expired according to the provisions of this subparagraph exceeds
468 the number of eligible members showing interest in or
469 demonstrating an intention to run for the vacant positions, each
470 such board member whose term has expired shall become eligible
471 for reappointment be automatically reappointed to the board of
472 administration and need not stand for reelection. In a
473 condominium association of more than 10 units or in a
474 condominium association that does not include timeshare units,
475 coowners of a unit may not serve as members of the board of
476 directors at the same time unless they own more than one unit
477 and are not co-occupants of a unit. Any unit owner desiring to
478 be a candidate for board membership must shall comply with sub
479 subparagraph subparagraph 3.a. A person who has been suspended
480 or removed by the division under this chapter, or who is
481 delinquent in the payment of any fee, fine, or special or
482 regular assessment as provided in paragraph (n), is not eligible
483 for board membership. A person who has been convicted of any
484 felony in this state or in a United States District or
485 Territorial Court, or who has been convicted of any offense in
486 another jurisdiction that would be considered a felony if
487 committed in this state, is not eligible for board membership
488 unless such felon’s civil rights have been restored for a period
489 of no less than 5 years as of the date on which such person
490 seeks election to the board. The validity of an action by the
491 board is not affected if it is later determined that a member of
492 the board is ineligible for board membership due to having been
493 convicted of a felony.
494 2. The bylaws shall provide the method of calling meetings
495 of unit owners, including annual meetings. Written notice, which
496 notice must include an agenda, shall be mailed, hand delivered,
497 or electronically transmitted to each unit owner at least 14
498 days prior to the annual meeting and shall be posted in a
499 conspicuous place on the condominium property at least 14
500 continuous days preceding the annual meeting. Upon notice to the
501 unit owners, the board shall by duly adopted rule designate a
502 specific location on the condominium property or association
503 property upon which all notices of unit owner meetings shall be
504 posted; however, if there is no condominium property or
505 association property upon which notices can be posted, this
506 requirement does not apply. In lieu of or in addition to the
507 physical posting of notice of any meeting of the unit owners on
508 the condominium property, the association may, by reasonable
509 rule, adopt a procedure for conspicuously posting and repeatedly
510 broadcasting the notice and the agenda on a closed-circuit cable
511 television system serving the condominium association. However,
512 if broadcast notice is used in lieu of a notice posted
513 physically on the condominium property, the notice and agenda
514 must be broadcast at least four times every broadcast hour of
515 each day that a posted notice is otherwise required under this
516 section. When broadcast notice is provided, the notice and
517 agenda must be broadcast in a manner and for a sufficient
518 continuous length of time so as to allow an average reader to
519 observe the notice and read and comprehend the entire content of
520 the notice and the agenda. Unless a unit owner waives in writing
521 the right to receive notice of the annual meeting, such notice
522 shall be hand delivered, mailed, or electronically transmitted
523 to each unit owner. Notice for meetings and notice for all other
524 purposes shall be mailed to each unit owner at the address last
525 furnished to the association by the unit owner, or hand
526 delivered to each unit owner. However, if a unit is owned by
527 more than one person, the association shall provide notice, for
528 meetings and all other purposes, to that one address which the
529 developer initially identifies for that purpose and thereafter
530 as one or more of the owners of the unit shall so advise the
531 association in writing, or if no address is given or the owners
532 of the unit do not agree, to the address provided on the deed of
533 record. An officer of the association, or the manager or other
534 person providing notice of the association meeting, shall
535 provide an affidavit or United States Postal Service certificate
536 of mailing, to be included in the official records of the
537 association affirming that the notice was mailed or hand
538 delivered, in accordance with this provision.
539 3.a. The members of the board shall be elected by written
540 ballot or voting machine. Proxies shall in no event be used in
541 electing the board, either in general elections or elections to
542 fill vacancies caused by recall, resignation, or otherwise,
543 unless otherwise provided in this chapter. Not less than 60 days
544 before a scheduled election, the association shall mail,
545 deliver, or electronically transmit, whether by separate
546 association mailing or included in another association mailing,
547 delivery, or transmission, including regularly published
548 newsletters, to each unit owner entitled to a vote, a first
549 notice of the date of the election along with a certification
550 form provided by the division attesting that he or she has read
551 and understands, to the best of his or her ability, the
552 governing documents of the association and the provisions of
553 this chapter and any applicable rules. Any unit owner or other
554 eligible person desiring to be a candidate for the board must
555 give written notice of intent to be a candidate to the
556 association not less than 40 days before a scheduled election.
557 Together with the written notice and agenda as set forth in
558 subparagraph 2., the association shall mail, deliver, or
559 electronically transmit a second notice of the election to all
560 unit owners entitled to vote therein, together with a ballot
561 which shall list all candidates. Upon request of a candidate,
562 the association shall include an information sheet, no larger
563 than 8 1/2 inches by 11 inches, which must be furnished by the
564 candidate not less than 35 days before the election, shall along
565 with the signed certification form provided for in this
566 subparagraph, to be included with the mailing, delivery, or
567 transmission of the ballot, with the costs of mailing, delivery,
568 or electronic transmission and copying to be borne by the
569 association. The association is not liable for the contents of
570 the information sheets prepared by the candidates. In order to
571 reduce costs, the association may print or duplicate the
572 information sheets on both sides of the paper. The division
573 shall by rule establish voting procedures consistent with the
574 provisions contained herein, including rules establishing
575 procedures for giving notice by electronic transmission and
576 rules providing for the secrecy of ballots. Elections shall be
577 decided by a plurality of those ballots cast. There shall be no
578 quorum requirement; however, at least 20 percent of the eligible
579 voters must cast a ballot in order to have a valid election of
580 members of the board. No unit owner shall permit any other
581 person to vote his or her ballot, and any such ballots
582 improperly cast shall be deemed invalid, provided any unit owner
583 who violates this provision may be fined by the association in
584 accordance with s. 718.303. A unit owner who needs assistance in
585 casting the ballot for the reasons stated in s. 101.051 may
586 obtain assistance in casting the ballot. The regular election
587 shall occur on the date of the annual meeting. The provisions of
588 this sub-subparagraph subparagraph shall not apply to timeshare
589 condominium associations. Notwithstanding the provisions of this
590 sub-subparagraph subparagraph, an election is not required
591 unless more candidates file notices of intent to run or are
592 nominated than board vacancies exist.
593 b. Within 90 days after being elected to the board, each
594 newly elected director shall certify in writing to the secretary
595 of the association that he or she has read the association’s
596 declarations of covenants and restrictions, articles of
597 incorporation, bylaws, and current written policies; that he or
598 she will work to uphold such documents and policies to the best
599 of his or her ability; and that he or she will faithfully
600 discharge his or her fiduciary responsibility to the
601 association’s members. In lieu of this written certification,
602 the newly elected director may submit a certificate of
603 satisfactory completion of the educational curriculum
604 administered by a division-approved condominium education
605 provider. Failure to timely file the written certification or
606 educational certificate automatically disqualifies the director
607 from service on the board. The secretary shall cause the
608 association to retain a director’s written certification or
609 educational certificate for inspection by the members for 5
610 years after a director’s election. Failure to have such written
611 certification or educational certificate on file does not affect
612 the validity of any appropriate action.
613 4. Any approval by unit owners called for by this chapter
614 or the applicable declaration or bylaws, including, but not
615 limited to, the approval requirement in s. 718.111(8), shall be
616 made at a duly noticed meeting of unit owners and shall be
617 subject to all requirements of this chapter or the applicable
618 condominium documents relating to unit owner decisionmaking,
619 except that unit owners may take action by written agreement,
620 without meetings, on matters for which action by written
621 agreement without meetings is expressly allowed by the
622 applicable bylaws or declaration or any statute that provides
623 for such action.
624 5. Unit owners may waive notice of specific meetings if
625 allowed by the applicable bylaws or declaration or any statute.
626 If authorized by the bylaws, notice of meetings of the board of
627 administration, unit owner meetings, except unit owner meetings
628 called to recall board members under paragraph (j), and
629 committee meetings may be given by electronic transmission to
630 unit owners who consent to receive notice by electronic
631 transmission.
632 6. Unit owners shall have the right to participate in
633 meetings of unit owners with reference to all designated agenda
634 items. However, the association may adopt reasonable rules
635 governing the frequency, duration, and manner of unit owner
636 participation.
637 7. Any unit owner may tape record or videotape a meeting of
638 the unit owners subject to reasonable rules adopted by the
639 division.
640 8. Unless otherwise provided in the bylaws, any vacancy
641 occurring on the board before the expiration of a term may be
642 filled by the affirmative vote of the majority of the remaining
643 directors, even if the remaining directors constitute less than
644 a quorum, or by the sole remaining director. In the alternative,
645 a board may hold an election to fill the vacancy, in which case
646 the election procedures must conform to the requirements of sub
647 subparagraph subparagraph 3.a. unless the association governs 10
648 units or fewer less and has opted out of the statutory election
649 process, in which case the bylaws of the association control.
650 Unless otherwise provided in the bylaws, a board member
651 appointed or elected under this section shall fill the vacancy
652 for the unexpired term of the seat being filled. Filling
653 vacancies created by recall is governed by paragraph (j) and
654 rules adopted by the division.
655
656 Notwithstanding subparagraph subparagraphs (b)2. and sub
657 subparagraph (d)3.a., an association of 10 or fewer units may,
658 by the affirmative vote of a majority of the total voting
659 interests, provide for different voting and election procedures
660 in its bylaws, which vote may be by a proxy specifically
661 delineating the different voting and election procedures. The
662 different voting and election procedures may provide for
663 elections to be conducted by limited or general proxy.
664 (l) Certificate of compliance.—There shall be a provision
665 that a certificate of compliance from a licensed electrical
666 contractor or electrician may be accepted by the association’s
667 board as evidence of compliance of the condominium units with
668 the applicable fire and life safety code. Notwithstanding the
669 provisions of chapter 633 or of any other code, statute,
670 ordinance, administrative rule, or regulation, or any
671 interpretation of the foregoing, an association, condominium, or
672 unit owner is not obligated to retrofit the common elements or
673 units of a residential condominium with a fire sprinkler system
674 or other engineered lifesafety system in a building that has
675 been certified for occupancy by the applicable governmental
676 entity, if the unit owners have voted to forego such
677 retrofitting and engineered lifesafety system by the affirmative
678 vote of two-thirds of all voting interests in the affected
679 condominium. However, a condominium association may not vote to
680 forego the retrofitting with a fire sprinkler system of common
681 areas in a high-rise building. For purposes of this subsection,
682 the term “high-rise building” means a building that is greater
683 than 75 feet in height where the building height is measured
684 from the lowest level of fire department access to the floor of
685 the highest occupiable story. For purposes of this subsection,
686 the term “common areas” means any enclosed hallway, corridor,
687 lobby, stairwell, or entryway. In no event shall the local
688 authority having jurisdiction require completion of retrofitting
689 of common areas with a sprinkler system or other engineered
690 lifesafety system before the end of 2019 2014.
691 1. A vote to forego retrofitting may be obtained by limited
692 proxy or by a ballot personally cast at a duly called membership
693 meeting, or by execution of a written consent by the member, and
694 shall be effective upon the recording of a certificate attesting
695 to such vote in the public records of the county where the
696 condominium is located. The association shall mail, hand
697 deliver, or electronically transmit to each unit owner written
698 notice at least 14 days prior to such membership meeting in
699 which the vote to forego retrofitting of the required fire
700 sprinkler system is to take place. Within 30 days after the
701 association’s opt-out vote, notice of the results of the opt-out
702 vote shall be mailed, hand delivered, or electronically
703 transmitted to all unit owners. Evidence of compliance with this
704 30-day notice shall be made by an affidavit executed by the
705 person providing the notice and filed among the official records
706 of the association. After such notice is provided to each owner,
707 a copy of such notice shall be provided by the current owner to
708 a new owner prior to closing and shall be provided by a unit
709 owner to a renter prior to signing a lease.
710 2. A vote to forego retrofitting may be obtained at a
711 special meeting of the unit owners called by a petition of at
712 least 25 percent of the voting interests, once every 3 years.
713 Notice shall be provided as required for any regularly called
714 meeting of the unit owners, and the notice shall state the
715 purpose of the meeting. Electronic transmission may not be used
716 as a method of giving notice of a meeting called in whole or in
717 part for this purpose.
718 3.2. As part of the information collected annually from
719 condominiums, the division shall require condominium
720 associations to report the membership vote and recording of a
721 certificate under this subsection and, if retrofitting has been
722 undertaken, the per-unit cost of such work. The division shall
723 annually report to the Division of State Fire Marshal of the
724 Department of Financial Services the number of condominiums that
725 have elected to forego retrofitting.
726 (n) Director or officer delinquencies.—A director or
727 officer more than 90 days delinquent in the payment of any fee,
728 fine, or regular or special assessments shall be deemed to have
729 abandoned the office, creating a vacancy in the office to be
730 filled according to law.
731 Section 6. Paragraph (d) of subsection (1) of section
732 718.115, Florida Statutes, is amended to read:
733 718.115 Common expenses and common surplus.—
734 (1)
735 (d) If the association is authorized pursuant to so
736 provided in the declaration to enter into a bulk contract for
737 communications services as defined in chapter 202, information
738 services, or Internet services, the costs charged for such
739 services, the cost of a master antenna television system or duly
740 franchised cable television service obtained pursuant to a bulk
741 contract shall be deemed a common expense. If the declaration
742 does not authorize the association to enter into a bulk contract
743 for provide for the cost of communications services as defined
744 in chapter 202, information services, or Internet services a
745 master antenna television system or duly franchised cable
746 television service obtained under a bulk contract as a common
747 expense, the board may enter into such a contract for such
748 services., and The cost of the services under a bulk contract
749 service will be a common expense but allocated on a per-unit
750 basis rather than a percentage basis if the declaration provides
751 for other than an equal sharing of common expenses, and any
752 contract entered into before July 1, 1998, in which the cost of
753 the service is not equally divided among all unit owners, may be
754 changed by vote of a majority of the voting interests present at
755 a regular or special meeting of the association, to allocate the
756 cost equally among all units. The contract shall be for a term
757 of not less than 2 years.
758 1. Any contract made by the board after the effective date
759 hereof for communications services as defined in chapter 202,
760 information services, or Internet services a community antenna
761 system or duly franchised cable television service may be
762 canceled by a majority of the voting interests present at the
763 next regular or special meeting of the association. Any member
764 may make a motion to cancel the said contract, but if no motion
765 is made or if such motion fails to obtain the required majority
766 at the next regular or special meeting, whichever occurs is
767 sooner, following the making of the contract, then such contract
768 shall be deemed ratified for the term therein expressed. Any
769 contract made by the association prior to assumption of control
770 of the association by unit owners other than the developer may
771 be canceled within 120 days after unit owners other than the
772 developer elect a majority of the board of directors consistent
773 with the provisions of s. 718.302(1).
774 2. Any such contract shall provide, and shall be deemed to
775 provide if not expressly set forth, that any hearing-impaired or
776 legally blind unit owner who does not occupy the unit with a
777 non-hearing-impaired or sighted person, or any unit owner
778 receiving supplemental security income under Title XVI of the
779 Social Security Act or food stamps as administered by the
780 Department of Children and Family Services pursuant to s.
781 414.31, may discontinue the cable or video service without
782 incurring disconnect fees, penalties, or subsequent service
783 charges, and, as to such units, the owners shall not be required
784 to pay any common expenses charge related to such service. If
785 less than all members of an association share the expenses of
786 cable or video service television, the expense shall be shared
787 equally by all participating unit owners. The association may
788 use the provisions of s. 718.116 to enforce payment of the
789 shares of such costs by the unit owners receiving cable or video
790 service television.
791 Section 7. Subsection (1) of section 718.301, Florida
792 Statutes, is amended to read:
793 718.301 Transfer of association control; claims of defect
794 by association.—
795 (1) When unit owners other than the developer own 15
796 percent or more of the units in a condominium that will be
797 operated ultimately by an association, the unit owners other
798 than the developer shall be entitled to elect no less than one
799 third of the members of the board of administration of the
800 association. Unit owners other than the developer are entitled
801 to elect not less than a majority of the members of the board of
802 administration of an association:
803 (a) Three years after 50 percent of the units that will be
804 operated ultimately by the association have been conveyed to
805 purchasers;
806 (b) Three months after 90 percent of the units that will be
807 operated ultimately by the association have been conveyed to
808 purchasers;
809 (c) When all the units that will be operated ultimately by
810 the association have been completed, some of them have been
811 conveyed to purchasers, and none of the others are being offered
812 for sale by the developer in the ordinary course of business;
813 (d) When some of the units have been conveyed to purchasers
814 and none of the others are being constructed or offered for sale
815 by the developer in the ordinary course of business;
816 (e) When the developer files a petition seeking protection
817 in bankruptcy;
818 (f) When a receiver for the developer is appointed by a
819 circuit court and is not discharged within 30 days after such
820 appointment, unless the court determines within 30 days after
821 appointment of the receiver that transfer of control would be
822 detrimental to the association or its members; or
823 (g) Seven years after recordation of the declaration of
824 condominium; or, in the case of an association which may
825 ultimately operate more than one condominium, 7 years after
826 recordation of the declaration for the first condominium it
827 operates; or, in the case of an association operating a phase
828 condominium created pursuant to s. 718.403, 7 years after
829 recordation of the declaration creating the initial phase,
830
831 whichever occurs first. The developer is entitled to elect at
832 least one member of the board of administration of an
833 association as long as the developer holds for sale in the
834 ordinary course of business at least 5 percent, in condominiums
835 with fewer than 500 units, and 2 percent, in condominiums with
836 more than 500 units, of the units in a condominium operated by
837 the association. Following the time the developer relinquishes
838 control of the association, the developer may exercise the right
839 to vote any developer-owned units in the same manner as any
840 other unit owner except for purposes of reacquiring control of
841 the association or selecting the majority members of the board
842 of administration.
843 Section 8. Part VII of chapter 718, Florida Statutes,
844 consisting of sections 718.701, 718.702, 718.703, 718.704,
845 718.705, 718.706, 718.707, and 718.708, is created to read:
846 PART VII
847 DISTRESSED CONDOMINIUM RELIEF
848 718.701 Short title.—This part may be cited as the
849 “Distressed Condominium Relief Act.”
850 718.702 Legislative intent.—
851 (1) The Legislature acknowledges the massive downturn in
852 the condominium market which has transpired throughout the state
853 and the impact of such downturn on developers, lenders, unit
854 owners, and condominium associations. Numerous condominium
855 projects have either failed or are in the process of failing,
856 whereby the condominium has a small percentage of third-party
857 unit owners as compared to the unsold inventory of units. As a
858 result of the inability to find purchasers for this inventory of
859 units, which results in part from the devaluing of real estate
860 in this state, developers are unable to satisfy the requirements
861 of their lenders, leading to defaults on mortgages.
862 Consequently, lenders are faced with the task of finding a
863 solution to the problem in order to be paid for their
864 investments.
865 (2) The Legislature recognizes that all of the factors
866 listed in this section lead to condominiums becoming distressed,
867 resulting in detriment to the unit owners and the condominium
868 association on account of the resulting shortage of assessment
869 moneys available to support the financial requirements for
870 proper maintenance of the condominium. Such shortage and the
871 resulting lack of proper maintenance further erode property
872 values. The Legislature finds that individuals and entities
873 within Florida and in other states have expressed interest in
874 purchasing unsold inventory in one or more condominium projects,
875 but are reticent to do so because of accompanying liabilities
876 inherited from the original developer, which are by definition
877 imputed to the successor purchaser, including a foreclosing
878 mortgagee. This results in the potential purchaser having
879 unknown and unquantifiable risks, and potential successor
880 purchasers are unwilling to accept such risks. The result is
881 that condominium projects stagnate, leaving all parties involved
882 at an impasse without the ability to find a solution.
883 (3) The Legislature finds and declares that it is the
884 public policy of this state to protect the interests of
885 developers, lenders, unit owners, and condominium associations
886 with regard to distressed condominiums, and that there is a need
887 for relief from certain provisions of the Florida Condominium
888 Act geared toward enabling economic opportunities within these
889 condominiums for successor purchasers, including foreclosing
890 mortgagees. Such relief would benefit existing unit owners and
891 condominium associations. The Legislature further finds and
892 declares that this situation cannot be open-ended without
893 potentially prejudicing the rights of unit owners and
894 condominium associations, and thereby declares that the
895 provisions of this part shall be used by purchasers of
896 condominium inventory for a specific and defined period.
897 718.703 Definitions.—As used in this part, the term:
898 (1) “Bulk assignee” means a person who:
899 (a) Acquires more than seven condominium parcels as set
900 forth in s. 718.707; and
901 (b) Receives an assignment of some or all of the rights of
902 the developer as are set forth in the declaration of condominium
903 or in this chapter by a written instrument recorded as an
904 exhibit to the deed or as a separate instrument in the public
905 records of the county in which the condominium is located.
906 (2) “Bulk buyer” means a person who acquires more than
907 seven condominium parcels as set forth in s. 718.707 but who
908 does not receive an assignment of any developer rights other
909 than the right to conduct sales, leasing, and marketing
910 activities within the condominium.
911 718.704 Assignment of developer rights to and assumption of
912 developer rights by bulk assignee; bulk buyer.—
913 (1) A bulk assignee shall be deemed to have assumed and is
914 liable for all duties and responsibilities of the developer
915 under the declaration and this chapter, except:
916 (a) Warranties of the developer under s. 718.203(1) or s.
917 718.618, except for design, construction, development, or repair
918 work performed by or on behalf of such bulk assignee.
919 (b) The obligation to:
920 1. Fund converter reserves under s. 718.618 for a unit
921 which was not acquired by the bulk assignee; or
922 2. Provide converter warranties on any portion of the
923 condominium property except as may be expressly provided by the
924 bulk assignee in the contract for purchase and sale executed
925 with a purchaser and pertaining to any design, construction,
926 development, or repair work performed by or on behalf of the
927 bulk assignee.
928 (c) The requirement to provide the association with a
929 cumulative audit of the association’s finances from the date of
930 formation of the condominium association as required by s.
931 718.301. However, the bulk assignee shall provide an audit for
932 the period for which the bulk assignee elects a majority of the
933 members of the board of administration.
934 (d) Any liability arising out of or in connection with
935 actions taken by the board of administration or the developer
936 appointed directors before the bulk assignee elects a majority
937 of the members of the board of administration.
938 (e) Any liability for or arising out of the developer’s
939 failure to fund previous assessments or to resolve budgetary
940 deficits in relation to a developer’s right to guarantee
941 assessments, except as otherwise provided in subsection (2).
942
943 Further, the bulk assignee is responsible for delivering
944 documents and materials in accordance with s. 718.705(3). A bulk
945 assignee may expressly assume some or all of the obligations of
946 the developer described in paragraphs (a)-(e).
947 (2) A bulk assignee receiving the assignment of the rights
948 of the developer to guarantee the level of assessments and fund
949 budgetary deficits pursuant to s. 718.116 shall be deemed to
950 have assumed and is liable for all obligations of the developer
951 with respect to such guarantee, including any applicable funding
952 of reserves to the extent required by law, for as long as the
953 guarantee remains in effect. A bulk assignee not receiving an
954 assignment of the right of the developer to guarantee the level
955 of assessments and fund budgetary deficits pursuant to s.
956 718.116 or a bulk buyer is not deemed to have assumed and is not
957 liable for the obligations of the developer with respect to such
958 guarantee, but is responsible for payment of assessments in the
959 same manner as all other owners of condominium parcels.
960 (3) A bulk buyer is liable for the duties and
961 responsibilities of the developer under the declaration and this
962 chapter only to the extent provided in this part, together with
963 any other duties or responsibilities of the developer expressly
964 assumed in writing by the bulk buyer.
965 (4) An acquirer of condominium parcels is not considered a
966 bulk assignee or a bulk buyer if the transfer to such acquirer
967 was made with the intent to hinder, delay, or defraud any
968 purchaser, unit owner, or the association, or if the acquirer is
969 a person who would constitute an insider under s. 726.102(7).
970 (5) An assignment of developer rights to a bulk assignee
971 may be made by the developer, a previous bulk assignee, or a
972 court of competent jurisdiction acting on behalf of the
973 developer or the previous bulk assignee. At any particular time,
974 there may be no more than one bulk assignee within a
975 condominium, but there may be more than one bulk buyer. If more
976 than one acquirer of condominium parcels receives an assignment
977 of developer rights from the same person, the bulk assignee is
978 the acquirer whose instrument of assignment is recorded first in
979 applicable public records.
980 718.705 Board of administration; transfer of control.—
981 (1) For purposes of determining the timing for transfer of
982 control of the board of administration of the association to
983 unit owners other than the developer under s. 718.301(1)(a) or
984 (b), if a bulk assignee is entitled to elect a majority of the
985 members of the board, a condominium parcel acquired by the bulk
986 assignee shall not be deemed to be conveyed to a purchaser, or
987 to be owned by an owner other than the developer, until such
988 condominium parcel is conveyed to an owner who is not a bulk
989 assignee.
990 (2) Unless control of the board of administration of the
991 association has already been relinquished pursuant to s.
992 718.301(1), the bulk assignee is obligated to relinquish control
993 of the association in accordance with s. 718.301 and this part.
994 (3) When a bulk assignee relinquishes control of the board
995 of administration as set forth in s. 718.301, the bulk assignee
996 shall deliver all of those items required by s. 718.301(4).
997 However, the bulk assignee is not required to deliver items and
998 documents not in the possession of the bulk assignee during the
999 period during which the bulk assignee was the owner of
1000 condominium parcels. In conjunction with the acquisition of
1001 condominium parcels, a bulk assignee shall undertake a good
1002 faith effort to obtain the documents and materials required to
1003 be provided to the association pursuant to s. 718.301(4). To the
1004 extent the bulk assignee is not able to obtain all of such
1005 documents and materials, the bulk assignee shall certify in
1006 writing to the association the names or descriptions of the
1007 documents and materials that were not obtainable by the bulk
1008 assignee. Delivery of the certificate relieves the bulk assignee
1009 of responsibility for the delivery of the documents and
1010 materials referenced in the certificate as otherwise required
1011 under ss. 718.112 and 718.301 and this part. The responsibility
1012 of the bulk assignee for the audit required by s. 718.301(4)
1013 shall commence as of the date on which the bulk assignee elected
1014 a majority of the members of the board of administration.
1015 (4) If a conflict arises between the provisions or
1016 application of this section and s. 718.301, this section shall
1017 prevail.
1018 (5) Failure of a bulk assignee or bulk buyer to comply with
1019 all the requirements contained in this part shall result in the
1020 loss of any and all protections or exemptions provided under
1021 this part.
1022 718.706 Specific provisions pertaining to offering of units
1023 by a bulk assignee or bulk buyer.—
1024 (1) Before offering any units for sale or for lease for a
1025 term exceeding 5 years, a bulk assignee or bulk buyer must file
1026 the following documents with the division and provide such
1027 documents to a prospective purchaser:
1028 (a) An updated prospectus or offering circular, or a
1029 supplement to the prospectus or offering circular, filed by the
1030 creating developer prepared in accordance with s. 718.504, which
1031 shall include the form of contract for purchase and sale in
1032 compliance with s. 718.503(2).
1033 (b) An updated Frequently Asked Questions and Answers
1034 sheet.
1035 (c) The executed escrow agreement if required under s.
1036 718.202.
1037 (d) The financial information required by s. 718.111(13).
1038 However, if a financial information report does not exist for
1039 the fiscal year before acquisition of title by the bulk assignee
1040 or bulk buyer, or accounting records cannot be obtained in good
1041 faith by the bulk assignee or bulk buyer which would permit
1042 preparation of the required financial information report, the
1043 bulk assignee or bulk buyer is excused from the requirement of
1044 this paragraph. However, the bulk assignee or bulk buyer must
1045 include in the purchase contract the following statement in
1046 conspicuous type:
1047
1048 THE FINANCIAL INFORMATION REPORT REQUIRED UNDER
1049 SECTION 718.111(13), FLORIDA STATUTES, FOR THE
1050 IMMEDIATELY PRECEDING FISCAL YEAR OF THE ASSOCIATION
1051 IS NOT AVAILABLE OR CANNOT BE CREATED BY THE SELLER AS
1052 A RESULT OF INSUFFICIENT ACCOUNTING RECORDS OF THE
1053 ASSOCIATION.
1054
1055 (2) Before offering any units for sale or for lease for a
1056 term exceeding 5 years, a bulk assignee must file with the
1057 division and provide to a prospective purchaser a disclosure
1058 statement that must include, but is not limited to:
1059 (a) A description to the purchaser of any rights of the
1060 developer which have been assigned to the bulk assignee.
1061 (b) The following statement in conspicuous type:
1062
1063 SELLER IS NOT OBLIGATED FOR ANY WARRANTIES OF THE
1064 DEVELOPER UNDER SECTION 718.203(1) OR SECTION 718.618,
1065 FLORIDA STATUTES, AS APPLICABLE, EXCEPT FOR DESIGN,
1066 CONSTRUCTION, DEVELOPMENT, OR REPAIR WORK PERFORMED BY
1067 OR ON BEHALF OF SELLER.
1068
1069 (c) If the condominium is a conversion subject to part VI,
1070 the following statement in conspicuous type:
1071
1072 SELLER HAS NO OBLIGATION TO FUND CONVERTER
1073 RESERVES OR TO PROVIDE CONVERTER WARRANTIES UNDER
1074 SECTION 718.618, FLORIDA STATUTES, ON ANY PORTION OF
1075 THE CONDOMINIUM PROPERTY EXCEPT AS MAY BE EXPRESSLY
1076 REQUIRED OF THE SELLER IN THE CONTRACT FOR PURCHASE
1077 AND SALE EXECUTED BY THE SELLER AND THE PREVIOUS
1078 DEVELOPER AND PERTAINING TO ANY DESIGN, CONSTRUCTION,
1079 DEVELOPMENT, OR REPAIR WORK PERFORMED BY OR ON BEHALF
1080 OF THE SELLER.
1081
1082 (3) In addition to the requirements set forth in subsection
1083 (1), a bulk assignee or bulk buyer must comply with the
1084 nondeveloper disclosure requirements set forth in s. 718.503(2)
1085 before offering any units for sale or for lease for a term
1086 exceeding 5 years.
1087 (4) A bulk assignee, while in control of the board of
1088 administration of the association, may not authorize, on behalf
1089 of the association:
1090 (a) The waiver of reserves or the reduction of funding of
1091 the reserves in accordance with s. 718.112(2)(f)2., unless
1092 approved by a majority of the voting interests not controlled by
1093 the developer, bulk assignee, or bulk buyer; or
1094 (b) The use of reserve expenditures for other purposes in
1095 accordance with s. 718.112(2)(f)3., unless approved by a
1096 majority of the voting interests not controlled by the
1097 developer, bulk assignee, or bulk buyer.
1098 (5) A bulk assignee, while in control of the board of
1099 administration of the association, must comply with the
1100 requirements imposed upon developers to transfer control of the
1101 association to the unit owners in accordance with s. 718.301.
1102 (6) A bulk assignee or bulk buyer must comply with all the
1103 requirements of s. 718.302 regarding any contracts entered into
1104 by the association during the period the bulk assignee or bulk
1105 buyer maintains control of the board of administration. Unit
1106 owners shall be afforded all the protections contained in s.
1107 718.302 regarding agreements entered into by the association
1108 before unit owners other than the developer, bulk assignee, or
1109 bulk buyer elected a majority of the board of administration.
1110 (7) A bulk buyer must comply with the requirements
1111 contained in the declaration regarding any transfer of a unit,
1112 including sales, leases, and subleases. A bulk buyer is not
1113 entitled to any exemptions afforded a developer or successor
1114 developer under this chapter regarding any transfer of a unit,
1115 including sales, leases, or subleases.
1116 718.707 Time limitation for classification as bulk assignee
1117 or bulk buyer.—A person acquiring condominium parcels may not be
1118 classified as a bulk assignee or bulk buyer unless the
1119 condominium parcels were acquired before July 1, 2011. The date
1120 of such acquisition shall be determined by the date of recording
1121 of a deed or other instrument of conveyance for such parcels in
1122 the public records of the county in which the condominium is
1123 located or by the date of issuance of a certificate of title in
1124 a foreclosure proceeding with respect to such condominium
1125 parcels.
1126 718.708 Liability of developers and others.—An assignment
1127 of developer rights to a bulk assignee or bulk buyer does not
1128 release the developer from any liabilities under the declaration
1129 or this chapter. This part does not limit the liability of the
1130 developer for claims brought by unit owners, bulk assignees, or
1131 bulk buyers for violations of this chapter by the developer,
1132 unless specifically excluded in this part. Nothing contained
1133 within this part waives, releases, compromises, or limits the
1134 liability of contractors, subcontractors, materialmen,
1135 manufacturers, architects, engineers, or any participant in the
1136 design or construction of a condominium for any claim brought by
1137 an association, unit owners, bulk assignees, or bulk buyers
1138 arising from the design of the condominium, construction
1139 defects, misrepresentations associated with condominium
1140 property, or violations of this chapter, unless specifically
1141 excluded in this part.
1142 Section 9. Subsection (2) of section 553.509, Florida
1143 Statutes, is repealed.
1144 Section 10. This act shall take effect upon becoming a law.
