(a) Applicability
of section.--If the declaration for a planned community provides that any
of the powers described in section 5302 (relating to power of unit owners'
association) with respect to the planned community 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 planned communities 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 planned
community.
(b) Powers.--Unless
a master association is acting in the capacity of an association described
in section 5301 (relating to organization of unit owners' association) with
respect to a planned community which is part of the master association,
it may exercise with respect to the planned community only such powers set
forth in section 5302 and only to the extent expressly permitted in the
declaration which provides for the delegation of powers from its planned
community association to the master association and accepted by the master
association, as indicated in the provisions of the declaration or other
organizational documents of the master association.
(c) Liability of
executive board members and officers.--If the declaration of a planned community
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 delegation. The officers and members of the governing board of
the master association are subject to liability to the planned community
association whose powers are delegated to the master association and the
unit owners of the planned community on the same basis as officers and executive
board members of the planned community 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
5302, 5303 (relating to executive board members and officers), 5309 (relating
to quorums), 5310 (relating to voting; proxies) and 5320 (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 elected pursuant
to a planned community declaration to the 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
5303(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 5301, the instrument creating
the master association and the declaration of each planned community of
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 planned communities 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 planned community 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 planned community and other property owners' association subject
to the master association elect specified members of the master association
governing body.
(4) All members
of the governing bodies of the planned communities 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 planned community upon any of the following:
(1) A date specified
in the declaration or any amendment thereto from and after which this section
shall apply to the planned community.
(2) 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) the event or
action has occurred and the date of such occurrence, thereby causing this
section to become applicable to the planned community; and
(ii) a copy of such
instrument has been sent to all unit owners.
(3) The declarant
executes and records an instrument stating that this section shall thereafter
apply to the planned community and that a copy of such instrument has been
sent to the executive board and all unit owners. This paragraph shall be
applicable only if the declarant shall have expressly reserved in the declaration,
under section 5205(13) (relating to contents of declaration; all planned
communities), the special declarant right to make this section applicable
to the planned community and only if the instrument exercising such right
has been recorded during the time period allowed for the exercise of such
right.
(g) Delegation of
all powers.--If all of the powers of a planned community association are
delegated to a master association and accepted by the master association
under subsection (b), then the governing body of the master association
may act in all respects as the executive board of the planned community,
and no separate executive board need be elected or exist.
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