How many directors can a developer appoint if they own 5% of 500 or fewer units?

The correct answer is that a developer can appoint one director if they own 5% of 500 or fewer units. In Florida, the law stipulates specific guidelines regarding the appointment of directors in community associations, especially concerning developers.

When a developer owns a minority share of the total units in a community association, their rights to appoint directors are limited. Specifically, if a developer holds less than 20% of the total units, they are granted the ability to appoint only one member to the board of directors. This rule is designed to balance the power between developers and unit owners, ensuring that a single developer does not maintain disproportionate control over the association's governance once a certain threshold of ownership is crossed.

Understanding this allocation is crucial for community association managers, as it lays the foundation for governance structure and the rights and responsibilities of both developers and unit owners within the community.