Additions, substitutions, or deletions of component site accommodations or facilities may be made only in accordance with the following:

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   (1) ADDITIONS.—

   (a) The timeshare instrument must provide for:

   1. The basis upon which new accommodations and facilities may be added to the multisite timeshare plan; by whom additions may be made; and the anticipated effect of the addition of new accommodations and facilities upon the reservation system, its priorities, its rules and regulations, and the availability of existing accommodations and facilities.

   2. Any cap on annual increases in common expenses of the multisite timeshare plan that would apply in the event that additional accommodations and facilities are made a part of the plan.

   3. The extent, if any, to which purchasers of the multisite timeshare plan will have the right to consent to any proposed additions.

   (b) Any person who is authorized by the timeshare instrument to make additions to the multisite timeshare plan pursuant to this subsection shall act as a fiduciary in such capacity in the best interests of the purchasers of the plan as a whole and shall adhere to the demand balancing standard set forth in s. 721.56(6) in connection with such additions. Additions that are otherwise permitted may be made only so long as a one-to-one use right to use night requirement ratio is maintained at all times.

   (2) SUBSTITUTIONS.—

   (a) Substitutions are available only for nonspecific multisite timeshare plans. Specific multisite timeshare plans or plans offering timeshare estates pursuant to s. 721.57 may not contain an accommodation substitution right.

   (b) The timeshare instrument shall provide for the following:

   1. The basis upon which new accommodations and facilities may be substituted for existing accommodations and facilities of the multisite timeshare plan; by whom substitutions may be made; and the basis upon which the determination may be made to cause such substitutions to occur.

   2. The replacement accommodations and facilities must provide purchasers with an opportunity to enjoy a substantially similar vacation experience as was available with the replaced accommodation or facility. In determining whether the replacement accommodations and facilities will provide a substantially similar vacation experience, all relevant factors must be considered, including, but not limited to, some or all of the following: size, capacity, furnishings, maintenance, location (geographic, topographic, and scenic), demand, and availability for purchaser use, and recreational capabilities.

   3. The extent, if any, to which purchasers will have the right to consent to any proposed substitutions.

   (c) No substitutions may be made during the first year after the developer begins to offer the multisite timeshare plan.

   (d) No more than 25 percent of the available accommodations at a given component site may undergo substitution in a given calendar year in which substitution is permitted. This paragraph shall be interpreted to permit the substitution of an entire component site over a 4-year period.

   (e) The person authorized to make substitutions shall notify all purchasers of the multisite timeshare plan in writing of her or his intention to delete accommodations at a given component site and to substitute them with other specified accommodations pursuant to this subsection. This notice must be given at least 6 months in advance of the date that the substitution will occur, and the notice must inform the purchasers that they may reserve the use of the accommodations to be deleted during this 6-month period. At the end of the 6-month period, the person authorized to make substitutions may delete accommodations for substitution only to the extent that they were not reserved during the 6-month period.

   (f) If the managing entity of a multisite timeshare plan includes an owners’ association composed of all purchasers or a corporation which owns or controls the accommodations and facilities of the plan, the board of administration of either of which is comprised of a majority of board members elected by purchasers other than the developer, and if such managing entity has the right to make substitutions pursuant to the timeshare instrument, all of the available accommodations at a given component site may undergo substitution in a given year without compliance with paragraphs (d) and (e) if a written plan of substitution provided to each purchaser has been approved by a majority of the board of administration and by a majority of all purchasers in the plan. The plan of substitution must:

   1. Specifically identify the component site being replaced and the proposed substitute component site.

   2. Contain information regarding prior demand for purchaser use of the component site being replaced.

   3. Provide the results of a survey of purchaser attitudes regarding the component site being replaced and the proposed substitute component site.

   4. Explain the practical and business reasons for effecting a total substitution within the given calendar year.

   5. Provide a plan for handling reservation requests during the substitution period for both the component site being replaced and the proposed substitute component site.

Substitutions made pursuant to this paragraph shall not be subject to the provisions of subparagraph (b)2.

   (g) The person who is authorized by the timeshare instrument to make substitutions to the multisite timeshare plan pursuant to this subsection shall act as a fiduciary in such capacity in the best interests of the purchasers of the plan as a whole and shall adhere to the demand balancing standard set forth in s. 721.56(6) in connection with such substitutions. Substitutions that are otherwise permitted may be made only so long as a one-to-one use right to use night requirement ratio is maintained at all times.

   (3) DELETIONS.—

   (a) Deletion by casualty.—

   1. Pursuant to s. 721.165, the timeshare instrument creating the multisite timeshare plan must provide for casualty insurance for the accommodations and facilities of the multisite timeshare plan in an amount equal to the replacement cost of such accommodations or facilities. The timeshare instrument must also provide that in the event of a casualty that results in accommodations or facilities being unavailable for use by purchasers, the managing entity shall notify all affected purchasers of such unavailability of use within 30 days after the event of casualty.

   2. The timeshare instrument must also provide for the application of any insurance proceeds arising from a casualty to either the replacement or acquisition of additional similar accommodations or facilities or to the removal of purchasers from the multisite timeshare plan so that purchasers will not be competing for available accommodations on a greater than one-to-one use right to use night requirement ratio.

   3. If the timeshare instrument does not provide for business interruption insurance, or if it is unavailable, or if the instrument permits the developer, the managing entity, or the purchasers to elect not to reconstruct after casualty under certain circumstances or to secure replacement accommodations or facilities in lieu of reconstruction, purchasers of the plan may temporarily compete for available accommodations on a greater than one-to-one use right to use night requirement ratio. The decision whether or not to reconstruct shall be made as promptly as possible under the circumstances.

   4. Any replacement of accommodations or facilities pursuant to this paragraph shall be made upon the same basis as required for substitution as set forth in subparagraph (2)(b)2.

   (b) Deletion by eminent domain.—

   1. The timeshare instrument creating the multisite timeshare plan must also provide for the application of any proceeds arising from a taking under eminent domain proceedings to either the replacement or acquisition of additional similar accommodations or facilities or to the removal of purchasers from the multisite timeshare plan so that purchasers will not be competing for available accommodations on a greater than one-to-one use right to use night requirement ratio.

   2. Any replacement of accommodations or facilities pursuant to this paragraph shall be made upon the same basis as required for substitution set forth in subparagraph (2)(b)2.

   (c) Automatic deletion.—The timeshare instrument may provide that a component site will be automatically deleted upon the expiration of its term in a timeshare plan other than a nonspecific multisite timeshare plan or as otherwise provided in the timeshare instrument. However, the timeshare instrument must also provide that in the event a component site is deleted from the plan in this manner, a sufficient number of purchasers of the plan will also be deleted so as to maintain no greater than a one-to-one use right to use night requirement ratio.

   (4) VIOLATIONS; PURCHASER REMEDIES.—All purchaser remedies pursuant to s. 721.21 shall be available for any violation of the provisions of this section.

s. 24, ch. 95-274; s. 909, ch. 97-102; s. 39, ch. 2000-3