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(a) Powers and fiduciary status.-- Except as provided in the declaration, the bylaws, in subsection (b) or other provisions
of this subpart, the executive board may act in all instances on behalf of the association.
In the performance of their duties, the officers and members of the executive board
shall stand in a fiduciary relation to the association and shall perform their duties,
including duties as members of any committee of the board upon which they may serve,
in good faith in a manner they reasonably believe to be in the best interests of the
association and with such care, including reasonable inquiry, skill and diligence,
as a person of ordinary prudence would use under similar circumstances. In managing
the association's reserve funds, the officers and members of the executive board shall
have the power to invest the association's reserve funds in investments permissible
by law for the investment of trust funds and shall be governed in the management of
the association's reserve funds by 20 Pa.C.S. § 7203 (relating to prudent investor
rule). In performing his duties, an officer or executive board member shall be entitled
to rely in good faith on information, opinions, reports or statements, including financial
statements and other financial data, in each case prepared or presented by any of
the following:
One or more other officers or employees of the association whom the officer or executive
board member reasonably believes to be reliable and competent in the matters presented.
Counsel, public accountants or other persons as to matters which the officer or executive
board member reasonably believes to be within the professional or expert competence
of such person.
A committee of the executive board upon which he does not serve, duly designated in
accordance with law, as to matters within its designated authority, which committee
the officer or executive board member reasonably believes to merit confidence.
An officer or executive board member shall not be considered to be acting in good
faith if he has knowledge concerning the matter in question that would cause his reliance
to be unwarranted. The executive board and its members shall have no liability for
exercising these powers provided they are exercised in good faith, in the best interest
of the association and with such care in the manner set forth in this section.
(b) Limitation on authority.-- The executive board may not act on behalf of the association to amend the declaration
(section 3219), to terminate the condominium (section 3220) or to elect members of
the executive board or determine the qualifications, powers and duties or terms of
office of executive board members (section 3303(e)) but the executive board may fill
vacancies in its membership for the unexpired portion of any term. The executive board
shall deliver to all unit owners copies of each budget approved by the executive board
and notice of any capital expenditure approved by the executive board promptly after
either such approval. In addition to other rights conferred by the declaration, bylaws
or this subpart, the unit owners, by majority or any larger vote specified in the
declaration, may reject any budget or capital expenditure approved by the executive
board, within 30 days after the approval.
(c) Status during period of declarant control.-- Subject to subsection (d), the declaration may provide for a period of declarant control
of the association during which period a declarant or persons designated by him may
appoint and remove the officers and members of the executive board. Any period of
declarant control extends from the date of the first conveyance of a unit to a person
other than a declarant for a period not exceeding seven years in the case of a flexible
condominium containing convertible real estate or to which additional real estate
may be added, or five years in the case of any other condominium. Regardless of the
period provided in the declaration, a period of declarant control terminates no later
than 180 days after conveyance of 75% of the units to unit owners other than a declarant.
A declarant may voluntarily surrender the right to appoint and remove officers and
members of the executive board before termination of that period but in that event
he may require, for the duration of the period of declarant control, that specified
actions of the association or executive board, as described in a recorded instrument
executed by the declarant, be approved by the declarant before they become effective.
(d) Election of members during transfer of declarant control.--
Not later than 60 days after conveyance of 25% of the units to unit owners other than
a declarant, not less than 25% of the members of the executive board shall be elected
by unit owners other than the declarant.
Not later than 60 days after conveyance of 50% of the units to unit owners other than
a declarant, not less than 33 1/3% of the members of the executive board shall be
elected by unit owners other than the declarant.
(e) Election of members and officers following declarant control.--
Not later than the termination of any period of declarant control, the unit owners
shall elect an executive board of at least three members at least a majority of whom
must be unit owners, except that the executive board may consist of two members, both
of whom must be unit owners, if the condominium consists of two units. The executive
board shall elect the officers. The persons elected shall take office upon election.
In the event that the election of the executive board by the unit owners fails to
take place not later than the termination of a period of declarant control as provided
in this section, then a special meeting of the unit owners may be called for such
purpose by any member of the executive board elected by the unit owners or, if there
is no such member of the executive board, the unit owners entitled to cast at least
10% of the votes in the association.
A vote by a unit owner must be submitted by the unit owner to an independent reviewer
who shall tally the results of the election and certify the results to the executive
board and unit owners. In order to be eligible to vote in the election, a unit owner
shall be in good standing with the association. The executive board shall present
the official election results based on the certified election report from the independent
reviewer at a meeting of the unit owners and shall enter the results in the meeting
records. All votes by unit owners under this paragraph shall be submitted to the independent
reviewer in accordance with the approved methods of voting as provided in this subpart.
This paragraph shall only apply to a condominium with at least 500 units. If a condominium
has less than 500 units, the association may opt in to the requirements under this
paragraph by a vote of at least 51% of the votes collected from the unit owners in
person, electronically or by absentee ballot which are in favor of the requirements
under this paragraph.
(f) Calculation of percentages of units conveyed.-- In determining whether the period of declarant control has terminated under subsection
(c), or whether unit owners other than a declarant are entitled to elect members of
the executive board under subsection (d), the percentage of the units conveyed is
presumed to be that percentage which would have been conveyed if all the units the
declarant has built or reserved the right to build in the declaration were included
in the condominium.
(g) Removal of member of executive board.-- Notwithstanding any provision of the declaration or bylaws to the contrary, the unit
owners, by a two-thirds vote of all persons present and entitled to vote at any meeting
of the unit owners at which a quorum is present, may remove any member of the executive
board with or without cause, other than a member appointed by the declarant, provided
notice of the intention to remove a member of the executive board is given with the
notice of the meeting at which such removal is considered, as provided under section
4303(g) (relating to executive board members and officers).
Synced from the Florida Legislature’s official site. Verify the current version before citing.
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Reference only — not legal advice. Verify current text at the official state legislature website before citing. Printed from Common Elements (July 4, 2026).