M100-Community Association Management Study Guide 2024 Updates

M100-Community Association Management Study Guide 2024 Updates Community Association - CORRECT ANSWER-a legal entity in which the owners enjoy the PROTECTION, ENHANCEMENT, MAINTENANCE and PRESERVATION of their homes and property. 3 Defining Characteristics of a Community Association - CORRECT ANSWER-1. Membership in the community is MANDATORY and automatic for all owners. 2. Certain association governing documents bind the owners and the association to each other through mandated actions. 3. Mandatory lien-based assessments (maintenance fees) are levied on each owner in order to operate and maintain the community association. Lien - CORRECT ANSWER-a legal claim by one party (community association) on the property of another (delinquent owner) to obtain the payment of a debt or the satisfaction of an obligation. Placing a lien on an owner's property protects the community association's interest. It encourages payment of the debt. Purpose of a Community Association - CORRECT ANSWER-to provide for the COMMUNITY, BUSINESS, and GOVERNANCE aspects of the association. This is achieved by administering, maintaining and enhancing a residential real estate development, and through the establishment of a system of property rights, binding covenants and restrictions, and rules and regulations. 3 Basic Types of Community Associations - CORRECT ANSWER-1. Planned Community - An owner owns his lot/unit and the community owns common areas. 2. Condominium - Individual owns his living unit and owns an undivided interest in the common elements. 3. Cooperative or Stock Cooperative - Individual owns stock or membership in the cooperative and owns a proprietary lease or occupancy agreement for his living unit. A proprietary lease or occupancy agreement defines the member or stockholder's rights and obligations in relation to the living unit. For most cooperatives, the community association owns all of the real estate as a not-for profit corporation. 3 Types of Residential Community Associations that can exist by themselves or can be grouped in CLUSTERS called: - CORRECT ANSWER-1. Master or Umbrella Associations - consists of more than one residential community associations. 2. Mixed-Use Development - consists of a mixture of residential and commercial and/or industrial uses grouped together. Their marketing slogan is often "live, work, play." 3. "55 and Older" Communities - must have one person who is 55 years of age or older living in at least 80% of its occupied units. Sources of Legal Obligations of a Community Association - CORRECT ANSWER-- Federal, state and local statutes, regulations, and case law (court decisions). -Legal documents unique to the community association that bind the association and its owners. -Lender requirements - for example, requirements set by secondary mortgage institutions (FHA, Fannie Mac, Freddie Mae, etc.) -Standards set by professional bodies - for example, auditing standards set by the American Institute of Certified Public Accountants. Additional Legal Obligations of Community Associations - CORRECT ANSWER--Equal Employment Opportunity Commission (EEOC) - protects against discrimination. -Fair Debt Collection Practices Act (FDCPA) - protects debtors from unscrupulous debt collectors and to impose a consistent and fair method to collect debts. -Fair Labor and Standards Act (FSLA) - dictates standards for the basic minimum wage and overtime pay. -Family and Medical Leave Act (FMLA) - requires employers of 50 or more employees to provide up to 12 weeks of unpaid, job-protected leave to eligible employees for the birth or adoption of a child or serious illness