M 100 CERTIFICATION EVALUATION FULL
QUESTIONS AND SOLUTIONS VERIFIED
PREPARATION MATERIAL
●● Purposes of a Community Association
Answer: Business - Not for profit
Government - Runs like a mini-government
Community - Mutual reasons for buying into area
●● 3 Basic Types of Community Associations
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:
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
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
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
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.
QUESTIONS AND SOLUTIONS VERIFIED
PREPARATION MATERIAL
●● Purposes of a Community Association
Answer: Business - Not for profit
Government - Runs like a mini-government
Community - Mutual reasons for buying into area
●● 3 Basic Types of Community Associations
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:
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
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
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
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.
