chapter 5- Associations Operations

Which statement is TRUE about non-developer community association members?

• They are never entitled to have developer-contracted services under a developer-controlled board.

• They are bound by, and responsible for, all contracts executed by the developer or member-controlled board.

• They may reject taking over the association, if they believe the developer has entered into service contracts requiring excessive payments from the association.

• They are only responsible for contracts entered into by the member-controlled board.

All of the following must occur once 15% of the total units of a condominium or cooperative are conveyed to non-developer members, EXCEPT:

• The developer must call a meeting to elect directors within 75 days.

• The developer must provide written notice of the meeting.

• Non-developer members elect 25% of the directors.

• The developer submits the names and addresses of the newly elected directors to the DBPR.

Which of the following does NOT trigger the requirement for the developer to transfer control of a condominium to non-director owners?

• Three years after 50% of the units that will be ultimately operated by the association have been conveyed to buyers.

• Three months after 75% of the units that will be ultimately operated by the association have been conveyed to buyers.

• Once all the units have been operated by the association have been completed, some are being offered for sale.

• Once some of the units have been conveyed to buyers and none of the planned units are being constructed or offered for sale by the developer on the ordinary course of business

Which event triggers the requirement that non-developer members must constitute a majority of the board of directors of a cooperative?

• Five years have elapsed since creation of the cooperative association.

• Six years have elapsed since creation of the cooperative association.

• Seven years have elapsed since creation of the cooperative association.

• Ten years have elapsed since creation of the cooperative association.

What does multi-condominium refer to?

• Two or more associations are members of a master association that has a board to provide certain combined functions.

• Two or more associations operated by a single board, where associations are governed by different statutes.

• A case where phases of a single condominium have been constructed over several years.

• A mixed-use association that contains both residential and commercial units.

When does a conversion occur?

• When a developer transitions control to the non-developer members.

• When the sub-condominiums in a multi-condominium merge with the master association.

• When a developer transforms existing rental property to a residential condominium or cooperative.

• When a subparcel of within a condominium creates a secondary condominium.

All of the following are required upon turnover of a condominium to the non-developer members, EXCEPT:

• The developer must provide the association with an audit of the association's financial records within 60 days of the transition meeting.

• The audit or audits provided to the new board must cover the period from incorporation of the association through the date of turnover.

• If the financial records have been audited every year from the date of incorporation, those audits must be provided to the new board, as well as an audit covering the period of time that has elapsed from the last audited period to the date of turnover.

• If the financial records were not audited for even one year, the audit must cover the period from the date of incorporation to the date of turnover.

Developers retain all of the following rights after turnover of a condominium, EXCEPT:

• Not to be assessed or have the association take any action that would be detrimental to sales without its prior approval as long as it holds units for sale in the property or course of business.

• To elect or appoint at least one director, provided the project has greater than 500 units, and the developer owns at least 5% of the units.

• To have the same rights and privileges as a member for those units that it owns, except that the developer cannot vote its units if it would influence the election of a majority of the board.

• To vote on issue related to the financial preparation of the association's financial reports from the date of incorporation of the association through the end of the second fiscal year after the fiscal year in which the certificate of a surveyor and mapper is recorded.

The occurrence of all of the following events may entitle non-developer members to elect at least a majority of members of an HOA board, EXCEPT:

• Three months after 75% of the parcels in all phases of the community that will ultimately be operated by the homeowners' association have been conveyed to members.

• Such other date or event has occurred, as is set forth in the governing documents to comply with the requirements of any governmentally mortgaged financing of parcels.

• Upon the developer abandoning or deserting its responsibility to maintain and complete the amenities or infrastructure as disclosed in the governing documents.

• Upon the developer filing a petition seeking protection under chapter 7 of Florida's Bankruptcy Code.

In an HOA, after turnover, a developer who continues to be able to elect one director if which of the following is TRUE?

• The developer holds for sale in the ordinary course of business at least 2% of the parcels in all phases of the community

• The developer holds for sale in the ordinary course of business at least 2% of the parcels in one phase of the community

• The developer holds for sale in the ordinary course of business at least 5% of the parcels in one phase of the community

• The developer holds for sale in the ordinary course of business at least 50% of the parcels in all phases of the community