Florida Community Association Manager Practice Exam

What percentage of parcels must a developer hold for sale in order to elect at least one director in an HOA?

1. 1%

2. 3%

3. 5%

4. 10%

The correct answer is: 5%

In the context of Florida homeowners' associations (HOAs), a developer is required to hold a certain percentage of parcels within the community in order to have the authority to elect at least one member to the board of directors. The stipulated percentage is critical because it ensures that developers can maintain some level of control over the association during the initial phases of the community’s establishment. The correct percentage, which is 5%, signifies the minimum threshold at which a developer can elect a director. This requirement is meant to balance the governance of the community during its development stage. By allowing the developer to have representation on the board, the association can benefit from their knowledge and experience in managing the community's establishment. When a developer holds 5% of the parcels, it demonstrates a vested interest in the community’s success, while also allowing for transition as more homeowners move in and take over governance. This provision helps facilitate smoother operations and decision-making in the early stages of the association, before all parcels are sold.