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.