Florida Community Association Manager Practice Exam

Under what condition can a developer elect or appoint at least one director in a condominium association?

1. If they own less than 1% of the units

2. If they own 5% of the units in developments with less than 500 units

3. If they own 10% of the units

4. If they own 2% of the units in developments with more than 500 units

The correct answer is: If they own 5% of the units in developments with less than 500 units

A developer can elect or appoint at least one director in a condominium association if they own 5% of the units in developments that have fewer than 500 units. This provision is designed to allow developers to maintain some level of influence and control over the association while the development is still in the early stages. It acknowledges the developer's investment and vested interest in the community's management and operations. This guideline supports a balance between the interests of the developer and the residents, particularly in the early phases of the condominium's existence when there may be a higher number of unsold units. It ensures that the developer, who is often familiar with the infrastructure and future plans for the community, has a direct line of communication and influence to address issues, improvements, or changes during the transition to homeowner control. In contrast, ownership percentages that are lower or higher than this threshold do not confer the same rights under the law, and thus prevent scenarios where developers could have disproportionate influence in larger associations or when their stake is minimal.