HB 561

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

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