(a) Applicability
of section.--If the declaration for a condominium provides that any of the
powers described in section 3302 (relating to powers of unit owners' association)
with respect to the condominium are to be exercised by or may be delegated
to a profit or nonprofit corporation or unincorporated association (a "master
association") which exercises those or other powers on behalf of one or
more other condominiums or other incorporated or unincorporated associations,
then, except as modified by this section, all provisions of this subpart
applicable to unit owners' associations shall apply to any such master association
insofar as its actions affect the condominium.
(b) Powers.--Unless
a master association is acting in the capacity of an association described
in section 3301 (relating to organization of unit owners' association) with
respect to a condominium which is part of the master association, it may
exercise with respect to the condominium only such powers set forth in section
3302 and only to the extent expressly permitted in the declaration of condominium
which provides for the delegation of powers from its condominium association
to the master association and accepted by such master association as indicated
in the provisions of the declaration or other organizational documents of
such master association.
(c) Liability of
executive board members and officers.--If the declaration of a condominium
provides that the executive board may delegate certain powers to a master
association, the members of the executive board have no liability for the
acts or omissions of the master association with respect to those powers
following such delegation. The officers and members of the governing board
of the master association are subject to liability to the condominium association
whose powers are delegated thereto and the unit owners of such condominium
on the same basis as officers and executive board members of such condominium
immediately before such delegation of powers.
(d) Rights and responsibilities
of persons electing governing body.--The rights and responsibilities of
unit owners with respect to the unit owners' association set forth in sections
3303 (relating to executive board members and officers), 3308 (relating
to meetings), 3309 (relating to quorums), 3310 (relating to voting; proxies)
and 3320 (relating to declarant delivery of items to association) apply
in the conduct of the affairs of a master association with respect to the
exercise of powers delegated pursuant to a condominium declaration to such
master association, but apply only to those persons who elect the governing
body of a master association, whether or not those persons are otherwise
unit owners within the meaning of this subpart.
(e) Election of
master association governing body.--Notwithstanding the provisions of section
3303(e) with respect to the election of the executive board by all unit
owners after the period of declarant control ends and even if a master association
is also an association described in section 3301, the instrument creating
the master association and the declaration of each condominium or the organizational
documents of other associations the powers of which are assigned pursuant
to the declaration or organizational documents or delegated to the master
association shall provide that the governing body of the master association
must be elected after the period of declarant control in any of the following
ways:
(1) All unit owners
of all condominiums and other properties subject to the master association
elect all members of the governing body of the master association.
(2) All members of
the governing bodies of the condominium associations and other property
owners' associations subject to the master association elect all members
of the master association governing body.
(3) All unit owners
of each condominium and other property owners' associations subject to the
master association elect specified members of the master association governing
body.
(4) All members of
the governing bodies of the condominiums and other property associations
subject to the master association elect specified members of the master
association governing body.
(f) Delegation of
responsibility and authority.--The provisions of this section shall apply
to a condominium if and when:
(1) there occurs
either a date specified in the declaration or any amendment thereto from
and after which this section shall apply to the condominium;
(2) there occurs
an event or action that the declaration or any amendment thereto states
shall cause this section to become applicable, and the association causes
to be recorded an instrument duly executed by the president of the association
stating that:
(i) such event or
action has occurred and the date of such occurrence, thereby causing this
section to become applicable to the condominium; and
(ii) that a copy
of such instrument has been sent to all unit owners; or
(3) the declarant
executes and records an instrument stating that this section shall thereafter
apply to the condominium and that a copy of such instrument has been sent
to the executive board and all unit owners.
Paragraph (3) shall be applicable only if the declarant shall have expressly
reserved in the declaration, pursuant to section 3205(12) (relating to contents
of declaration; all condominiums), the special declarant right to make this
section applicable to the condominium and only if the instrument exercising
such right shall have been recorded during the time period allowed for the
exercise of such right.
(g) Delegation of
all powers.--If all the powers of a condominium association are delegated
to a master association and accepted by such master association pursuant
to subsection (b), then the governing body of the master association may
act in all respects as the executive board of the condominium and no separate
executive board need be elected or exist.
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