Florida Community Association Manager Practice Exam

What is the minimum ownership percentage allowing a developer to appoint at least one director if they own 500 or more units?

1. 1%

2. 2%

3. 5%

4. 10%

The correct answer is: 2%

In Florida community associations, particularly under the Florida Statutes, the ability for a developer to appoint at least one director in an association is tied to the percentage of ownership of units by the developer. The correct answer indicates that if a developer owns at least 2% of the total number of units in a community of 500 or more units, they are permitted to appoint at least one director. This percentage reflects a broader principle in community association governance, where a developer's ongoing involvement is recognized as significant until their stake in the community falls below a certain threshold. The choice of 2% specifically provides a balance to ensure that developers maintain a degree of influence and involvement in the governance of the association, particularly during the early stages when they are still selling units and may have a vested interest in its management. Understanding this minimum ownership requirement is critical for community association managers, as it informs both the operational structure of the board and the transition from developer control to homeowner control as the community matures.