CS/CS/CS/HB 561 Summary

• Creates the "Distressed Condominium Relief Act" (Part VII of Chapter 718) establishing "bulk assignee" and "bulk buyer" classifications for entities acquiring multiple condominium units, with limited developer rights and liability protections during distressed real estate conditions through July 1, 2012.

• Modifies condominium insurance requirements by allowing property insurance deductibles based on board discretion without public meetings and requiring minimum $2,000 loss assessment coverage for unit owners; removes mandatory fire sprinkler retrofitting requirements for high-rise buildings if approved by two-thirds vote.

• Expands board member eligibility requirements to include director certification of governance document review within 90 days of election or completion of division-approved education; extends delinquency standards for director removal to any monetary obligation rather than just assessments.

• Enhances association collection remedies by allowing associations to demand tenants pay rent directly to association when unit owners are delinquent, with tenant immunity protections; increases first mortgagee liability for assessments from 6 months to 12 months prior to foreclosure.

• Adds restrictions on board member compensation, prohibits directors from benefiting financially from service (with limited exceptions), and expands record access exemptions to include personnel, electronic security measures, and personal identifying information while maintaining financial transparency requirements.