2010 Pennsylvania Code
Title 68 - REAL AND PERSONAL PROPERTY
Chapter 42 - Creation, Alteration and Termination of Cooperatives
4219 - Master associations.

     § 4219.  Master associations.
        (a)  General rule.--If the declaration provides that any of
     the powers described in section 4302 (relating to powers of
     association) 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 cooperatives, condominiums, homeowners
     associations or any combination of the foregoing or for the
     benefit of the proprietary lessees of one or more cooperatives,
     unit owners of one or more condominiums, members of one or more
     homeowners associations or some combination of the foregoing,
     all provisions of this subpart applicable to associations apply
     to any such corporation or unincorporated association insofar as
     such association is acting on behalf of one or more
     cooperatives, except as modified by this section.
        (b)  Exercise of powers of association.--Unless a master
     association is acting in the capacity of an association
     described in section 4301 (relating to organization of
     association), it may exercise the powers set forth in section
     4302 only to the extent expressly permitted in the declarations
     of the cooperatives which are part of the master association or
     expressly described in the delegations of power from those
     cooperatives to the master association.
        (c)  Liability for exercise of delegated powers.--If the
     declaration of any cooperative 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 of
     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
     cooperative association whose powers are delegated thereto and
     the proprietary lessees of such cooperative on the same basis as
     officers and executive board members of such cooperative
     immediately before such delegation of power.
        (d)  Rights and liabilities of proprietary lessees.--The
     rights and responsibilities of proprietary lessees with respect
     to the association set forth in sections 4303 (relating to
     executive board members and officers), 4308 (relating to
     meetings), 4309 (relating to quorums), 4310 (relating to voting;
     proxies), 4312 (relating to conveyance or encumbrance of
     cooperative) and 4320 (relating to declarant delivery of items
     to association) apply in the conduct of the affairs of a master
     association only to those persons who elect the board of a
     master association, whether or not those persons are otherwise
     proprietary lessees within the meaning of this subpart.
        (e)  Election of executive board.--Notwithstanding the
     provisions of section 4303(f) with respect to the election of
     the executive board of an association by all proprietary lessees
     after the period of declarant control ends and even if a master
     association is also an association described in section 4301,
     the certificate of incorporation or other instrument creating
     the master association and the declaration of each cooperative,
     the powers of which are assigned by the declaration or delegated
     to the master association, may provide that the executive board
     of the master association must be elected after the period of
     declarant control in any of the following ways:
            (1)  All proprietary lessees of all cooperatives subject
        to the master association may elect all members of that
        executive board.
            (2)  All members of the executive boards of all
        cooperatives subject to the master association may elect all
        members of that executive board.
            (3)  All proprietary lessees of each cooperative subject
        to the master association may elect specified members of the
        executive board.
            (4)  All members of the executive boards of each
        cooperative subject to the master association may elect
        specified members of that executive board.
        (f)  When section applicable to cooperative.--The provisions
     of this section shall apply to a cooperative 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 cooperative;
            (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 cooperative; and
                (ii)  that a copy of such instrument has been sent to
            all proprietary lessees; or
            (3)  the declarant executes and records an instrument
        stating that this section shall thereafter apply to the
        cooperative and that a copy of the instrument has been sent
        to the executive board and all proprietary lessees. Paragraph
        (3) shall be applicable only if the declarant expressly
        reserved in the declaration, pursuant to section 4205(a)(8)
        (relating to contents of declaration), the special declarant
        right to make this section applicable to the cooperative and
        only if the instrument exercising such right is recorded
        during the time period allowed for the exercise of such
        right.
        (g)  When executive board not required.--If all of the powers
     of a cooperative association are delegated to a master
     association and accepted by the master association pursuant to
     this section, then the governing body of the master association
     may act in all respects as the executive board of the
     cooperative and no separate executive board need be elected or
     exist.

        Cross References.  Section 4219 is referred to in sections
     4102, 4103, 4302 of this title.