M-100 The Essentials of Community Association Management questions and well
stated answers
Characteristics of a Community Association - correct answer-Mandatory membership
Mutually binding documents
Lien-based assessments
Purposes of a Community Association - correct answer-Business - Not for profit
Government - Runs like a mini-government
Community - Mutual reasons for buying into area
3 Basic Types of Community Associations - correct answer-Planned Community - Owners
owns his lot/living unit and community owns common areas (tennis courts, basketball
courts, etc.).
Condominium - Individual owns unit and undivided interest (percentage) in common
elements.
Cooperative - Individual owns stock or membership in cooperative and holds a proprietary
lease/occupancy agreement.
Community associations can be grouped into clusters called: - correct answer-Master or
Umbrella Associations - More than one residential community.
Mixed-Use Development - Mixture of residential and commercial.
"55 and Older" Communities - 80% of residents are 55+ and at least one per unit.
Name the sources of legal obligations for a Community Association - correct answer-
Federal, state and local statutes, regulations and case law.
Governing documents
Standards set by professional bodies (AICPA)
Lender requirements
Types of Federal Law Applying to Community Associations - correct answer-Equal
Employment Opportunity Commission
Fair Debt Collection Practices Act
Fair Labor and Standards Act
Family and Medical Leave Act
, FICA
OSHA
Bankruptcy Code
FCC
Fair Housing Act
Types of State Statutes Applying to Community Associations - correct answer-General -
Applies to all types of associations
Specifics - Applies to only one type of association (takes precedence over any general
statutes and governing documents.
Uniform - National Conference of Commissioners draft generic content-specific wording
to encourage uniformity among the states.
Purpose of Community Association Governing Documents - correct answer-Provide legal
structure and operation of a community association.
Hierarchy of Governing Documents - correct answer-Recorded map, plat or plan
Declaration, CC&Rs, proprietary lease or occupancy agreement.
Articles of Incorporation
Bylaws
Board Resolutions
Declaration, CC&Rs, proprietary lease or occupancy agreement. - correct answer-
Declarations - Condo
CC&Rs - Planned Community
Proprietary Lease/Occupancy Agrmt - Coop
Articles of Incorporation - correct answer-Brings corporation into existence.
Coops must incorporate because the the corporation owns all the property.
Other types of communities may incorporate.
Benefits of incorporating - correct answer-Limit liability of individual owners.
Right granted all corporations
stated answers
Characteristics of a Community Association - correct answer-Mandatory membership
Mutually binding documents
Lien-based assessments
Purposes of a Community Association - correct answer-Business - Not for profit
Government - Runs like a mini-government
Community - Mutual reasons for buying into area
3 Basic Types of Community Associations - correct answer-Planned Community - Owners
owns his lot/living unit and community owns common areas (tennis courts, basketball
courts, etc.).
Condominium - Individual owns unit and undivided interest (percentage) in common
elements.
Cooperative - Individual owns stock or membership in cooperative and holds a proprietary
lease/occupancy agreement.
Community associations can be grouped into clusters called: - correct answer-Master or
Umbrella Associations - More than one residential community.
Mixed-Use Development - Mixture of residential and commercial.
"55 and Older" Communities - 80% of residents are 55+ and at least one per unit.
Name the sources of legal obligations for a Community Association - correct answer-
Federal, state and local statutes, regulations and case law.
Governing documents
Standards set by professional bodies (AICPA)
Lender requirements
Types of Federal Law Applying to Community Associations - correct answer-Equal
Employment Opportunity Commission
Fair Debt Collection Practices Act
Fair Labor and Standards Act
Family and Medical Leave Act
, FICA
OSHA
Bankruptcy Code
FCC
Fair Housing Act
Types of State Statutes Applying to Community Associations - correct answer-General -
Applies to all types of associations
Specifics - Applies to only one type of association (takes precedence over any general
statutes and governing documents.
Uniform - National Conference of Commissioners draft generic content-specific wording
to encourage uniformity among the states.
Purpose of Community Association Governing Documents - correct answer-Provide legal
structure and operation of a community association.
Hierarchy of Governing Documents - correct answer-Recorded map, plat or plan
Declaration, CC&Rs, proprietary lease or occupancy agreement.
Articles of Incorporation
Bylaws
Board Resolutions
Declaration, CC&Rs, proprietary lease or occupancy agreement. - correct answer-
Declarations - Condo
CC&Rs - Planned Community
Proprietary Lease/Occupancy Agrmt - Coop
Articles of Incorporation - correct answer-Brings corporation into existence.
Coops must incorporate because the the corporation owns all the property.
Other types of communities may incorporate.
Benefits of incorporating - correct answer-Limit liability of individual owners.
Right granted all corporations
