CS/HB 327 - Community Associations Summary

• Creates "Distressed Condominium Relief Act" (Part VII of Chapter 718) to address struggling condominium projects by allowing bulk assignees and bulk buyers to acquire unsold inventory with limited developer liability exposure

• Defines "bulk assignee" as acquiring 7+ units and receiving assignment of developer rights, and "bulk buyer" as acquiring 7+ units without receiving developer rights except optional sales/marketing and exemptions from working capital contributions

• Exempts bulk assignees from most developer warranties and reserves obligations, except for work they perform, and limits audit requirements to periods under their control; bulk assignees cannot reduce reserves or waive reserve funding without approval from non-developer unit owners

• Requires bulk assignees and bulk buyers to file disclosure statements with the Division of Florida Condominiums before offering units for sale or lease exceeding 5 years, including prospectus information and statements that seller has no warranty obligations except for work performed by the bulk assignee

• Restricts bulk assignee/buyer classification to condominium units acquired before July 1, 2012, and preserves original developer liability for construction defects and chapter violations; requires compliance failures result in loss of all protections under the act