SB 1222 Summary

• Creates new insurance requirements for condominium unit owners including minimum $2,000 loss assessment coverage with deductibles not exceeding $250, effective July 1, 2010.

• Establishes "Distressed Condominium Relief Act" allowing bulk assignees and bulk buyers to acquire and manage unsold condominium inventory with limited developer liabilities, applicable only to parcels acquired before July 1, 2011.

• Requires property insurance coverage be based on independent replacement cost appraisals updated at least every 36 months, and prohibits associations from waiving or reducing reserves without majority approval from non-developer unit owners.

• Implements new board election procedures including written certification requirements for newly elected directors, eligibility restrictions for delinquent owners, and allows special meetings every 3 years to vote on fire sprinkler system retrofitting deferrals until 2019.

• Exempts one and two-story condominiums with exterior egress corridors from manual fire alarm system requirements and repeals the requirement for residential dwellings to have emergency backup power elevators.