M-100 CMCA General Key Terms for All
Domains 2025-2026 Study Guide
1. 55 and older Must have one person who is 55 years of age or older living in at least 80% of
community its occupied units. The community must be designated "55 and older" to qualify
as this type of housing that legally prohibits children and limits occupancy to a
certain age span. The designation process involves submitting applications and
obtaining approval before any enforcement of the ages of residents commences.
Approval from the Department of Housing and Urban Development (HUD) must
be received before construction begins.
2. Abstention Is to not cast a vote. Board members should abstain from voting only for clearly
stated reasons such as a conflict of interest or ignorance of the matter at hand.
3. Acceleration The collection of all assessments due through the end of the fiscal year. Accelera-
tion is a technique used to collect assessments from habitually delinquent owners.
4. Accrual basis of Records revenue when it is earned and expenses when they are incurred. It pro-
accounting vides an accurate picture of the association's financial condition. GAAP (Generally
Accepted Accounting Principles) requires the use of accrual accounting.
5. Action item list A list of actions to be taken before the next board of directors meeting as a
result of decisions made at the current one or between meetings. An action
item list contains the decisions to be implemented together with the names of
those assigned implementation responsibility. Excel, Google Docs and Microsoft
Outlook Tasks may be useful programs for helping you compile your action item
list.
6. Actual cash value ACV is the depreciated value of an item, commonly used in property insurance
(ACV) coverage.
, M-100 CMCA General Key Terms for All
Domains 2025-2026 Study Guide
7. Ad hoc commit- This committee's purpose is to deal with a one-time issue and make recom-
tee mendations to the board within a specific time frame. The board should use a
resolution to establish an ad hoc committee and clearly state the charge and
expected outcome to the committee. Ad hoc committees may be formed to review
parking regulations, develop investment guidelines, or to renovate a lobby, for
example.
8. Advertising in- Advertising injury provisions in commercial general liability insurance (CGL) in-
jury clude language providing coverage to the community association with respect
to damages resulting in "misappropriation of advertising ideas or style of doing
business" or "infringement of copyright, slogan, or title." Community associ-
ations with newsletters, directories, and websites that contain advertising and
use online, magazine or newspaper articles without reprint permission have this
exposure.
9. Agenda An agenda is more than an announcement of the order of business for a meeting.
It is a meeting management tool. Meeting agendas follow a standard format,
largely based on parliamentary procedure.
10. Aggregate The total amount that the insurer will pay out under an insurance policy. This is a
amount common feature of liability insurance policy.
11. Agreed amount Provides for an agreed upon limit of property insurance. An "agreed amount"
endorsement endorsement can also suspend the coinsurance clause. Coinsurance is a standard
element in most property policies that obligates the insured to maintain a certain
amount of property insurance on the entire property or per structure, based on
a stated percentage, usually 80% - 90%. If the insured does not maintain this
percentage, the insured will not be reimbursed for the full loss of the property.
12. Alternative dis- An ettective way to resolve alleged violations. It involves submitting the alleged
pute resolution violation to a disinterested third party who helps the parties reach an amicable
(ADR) solution. This person is not a judge or an expert in community association law,
but can assist in the resolution of the alleged violation.
, M-100 CMCA General Key Terms for All
Domains 2025-2026 Study Guide
13. Appeal An appeal is a request for a review of a case by a higher authority—if permitted
by the governing documents, resolution or state statute. For example—if the
hearing panel is a committee, the board of directors acts as the higher authority.
If the board of directors is the hearing panel, the alleged rule violator must appeal
to an authority outside the community association—for example, alternative
dispute resolution.
14. Arbitration A process in which a third party—called the arbitrator—renders a decision as
to the respective liabilities of all parties. The object is not to reach a settlement;
instead the arbitrator ultimately makes a ruling. It is an adversarial process that
results in the same "win-lose" or "lose-lose" that you would see in litigation.
Arbitration can be binding or non-binding. A binding arbitration typically cannot
be appealed. Once the decision is rendered, unless you can prove fraud, the
decision will be forever binding. A non-binding arbitration is advisory in nature.
The decision that the arbitrator makes does not have to be followed. In that
respect, it is like getting an opinion of your case from a neutral party, which could
result in a fair settlement figure.
15. Architectural A rule that applies to the appearance or exterior of a lot, home, or unit. Community
guideline associations frequently develop architectural guidelines that address fencing,
decks and patios, landscaping, doors and windows, color of exterior surfaces, and
location of improvements upon lots, for example.
16. Articles of incor- Document that brings a corporation into existence. The document also defines
poration its basic purposes and powers and indicates whether stock will be issued. The
articles must be filed with a state in order to incorporate. Among the things it
typically must include are the name and address of the corporation, its general
purpose and the number and type of shares of stock to be issued.
17. Assessment The owner's financial obligation to the community association during a given
period of time—usually one year. Also commonly known as a maintenance fee. It
covers the owner's share of the common expense (known as "common expense
, liabilities" in some states). An annual assessment may be paid on a monthly,
quarterly, or annual basis, or however the governing documents dictate. Most of
a community's revenue will come from owner assessments.
18. Assessments re- This insurance actually has a certain limited value. It applies to situations in which
ceivable insur- a covered loss happens to the property (for example, a fire destroys a unit) and the
ance community association is unable to collect assessments from the owner. Housing
cooperatives can protect their assessments through "Loss of Rents" coverage, a
type of business income.
19. Assets Assets include anything owned that has value. Unlike commercial businesses,
however, the actual land and buildings of the community association are not
generally shown as an asset, although the association may include assets that
can be sold without an owner vote. For cash basis reports, cash usually is the only
asset.
20. Assignability pro- A contract provision stating that neither party may assign its obligations under the
vision contract to any other person without the express written consent of the other party.
The contract should specifically state that the contractor cannot use subcontractors
without the association's permission.
21. Association-em- An individual who is directly employed by the association to manage the commu-
ployed manager nity's operations. The role of the manager is to: 1) Provide information, training,
and leadership on community association operations to the board, committees,
and the community at large, 2) Foster a sense of community awareness and spirit
within the residents, 3) Develop a body of leadership through the committee
structure , and 4) Provide the necessary administrative tools to the board to enable
it to make wise, informed decisions on both short-term and long-term actions and
goals.
22. Audit An examination of the accounting records and procedures of an organization
by a certified public accountant (CPA) for the purpose of verifying the accuracy
and completeness of financial records. An annual audit may be required by your
Domains 2025-2026 Study Guide
1. 55 and older Must have one person who is 55 years of age or older living in at least 80% of
community its occupied units. The community must be designated "55 and older" to qualify
as this type of housing that legally prohibits children and limits occupancy to a
certain age span. The designation process involves submitting applications and
obtaining approval before any enforcement of the ages of residents commences.
Approval from the Department of Housing and Urban Development (HUD) must
be received before construction begins.
2. Abstention Is to not cast a vote. Board members should abstain from voting only for clearly
stated reasons such as a conflict of interest or ignorance of the matter at hand.
3. Acceleration The collection of all assessments due through the end of the fiscal year. Accelera-
tion is a technique used to collect assessments from habitually delinquent owners.
4. Accrual basis of Records revenue when it is earned and expenses when they are incurred. It pro-
accounting vides an accurate picture of the association's financial condition. GAAP (Generally
Accepted Accounting Principles) requires the use of accrual accounting.
5. Action item list A list of actions to be taken before the next board of directors meeting as a
result of decisions made at the current one or between meetings. An action
item list contains the decisions to be implemented together with the names of
those assigned implementation responsibility. Excel, Google Docs and Microsoft
Outlook Tasks may be useful programs for helping you compile your action item
list.
6. Actual cash value ACV is the depreciated value of an item, commonly used in property insurance
(ACV) coverage.
, M-100 CMCA General Key Terms for All
Domains 2025-2026 Study Guide
7. Ad hoc commit- This committee's purpose is to deal with a one-time issue and make recom-
tee mendations to the board within a specific time frame. The board should use a
resolution to establish an ad hoc committee and clearly state the charge and
expected outcome to the committee. Ad hoc committees may be formed to review
parking regulations, develop investment guidelines, or to renovate a lobby, for
example.
8. Advertising in- Advertising injury provisions in commercial general liability insurance (CGL) in-
jury clude language providing coverage to the community association with respect
to damages resulting in "misappropriation of advertising ideas or style of doing
business" or "infringement of copyright, slogan, or title." Community associ-
ations with newsletters, directories, and websites that contain advertising and
use online, magazine or newspaper articles without reprint permission have this
exposure.
9. Agenda An agenda is more than an announcement of the order of business for a meeting.
It is a meeting management tool. Meeting agendas follow a standard format,
largely based on parliamentary procedure.
10. Aggregate The total amount that the insurer will pay out under an insurance policy. This is a
amount common feature of liability insurance policy.
11. Agreed amount Provides for an agreed upon limit of property insurance. An "agreed amount"
endorsement endorsement can also suspend the coinsurance clause. Coinsurance is a standard
element in most property policies that obligates the insured to maintain a certain
amount of property insurance on the entire property or per structure, based on
a stated percentage, usually 80% - 90%. If the insured does not maintain this
percentage, the insured will not be reimbursed for the full loss of the property.
12. Alternative dis- An ettective way to resolve alleged violations. It involves submitting the alleged
pute resolution violation to a disinterested third party who helps the parties reach an amicable
(ADR) solution. This person is not a judge or an expert in community association law,
but can assist in the resolution of the alleged violation.
, M-100 CMCA General Key Terms for All
Domains 2025-2026 Study Guide
13. Appeal An appeal is a request for a review of a case by a higher authority—if permitted
by the governing documents, resolution or state statute. For example—if the
hearing panel is a committee, the board of directors acts as the higher authority.
If the board of directors is the hearing panel, the alleged rule violator must appeal
to an authority outside the community association—for example, alternative
dispute resolution.
14. Arbitration A process in which a third party—called the arbitrator—renders a decision as
to the respective liabilities of all parties. The object is not to reach a settlement;
instead the arbitrator ultimately makes a ruling. It is an adversarial process that
results in the same "win-lose" or "lose-lose" that you would see in litigation.
Arbitration can be binding or non-binding. A binding arbitration typically cannot
be appealed. Once the decision is rendered, unless you can prove fraud, the
decision will be forever binding. A non-binding arbitration is advisory in nature.
The decision that the arbitrator makes does not have to be followed. In that
respect, it is like getting an opinion of your case from a neutral party, which could
result in a fair settlement figure.
15. Architectural A rule that applies to the appearance or exterior of a lot, home, or unit. Community
guideline associations frequently develop architectural guidelines that address fencing,
decks and patios, landscaping, doors and windows, color of exterior surfaces, and
location of improvements upon lots, for example.
16. Articles of incor- Document that brings a corporation into existence. The document also defines
poration its basic purposes and powers and indicates whether stock will be issued. The
articles must be filed with a state in order to incorporate. Among the things it
typically must include are the name and address of the corporation, its general
purpose and the number and type of shares of stock to be issued.
17. Assessment The owner's financial obligation to the community association during a given
period of time—usually one year. Also commonly known as a maintenance fee. It
covers the owner's share of the common expense (known as "common expense
, liabilities" in some states). An annual assessment may be paid on a monthly,
quarterly, or annual basis, or however the governing documents dictate. Most of
a community's revenue will come from owner assessments.
18. Assessments re- This insurance actually has a certain limited value. It applies to situations in which
ceivable insur- a covered loss happens to the property (for example, a fire destroys a unit) and the
ance community association is unable to collect assessments from the owner. Housing
cooperatives can protect their assessments through "Loss of Rents" coverage, a
type of business income.
19. Assets Assets include anything owned that has value. Unlike commercial businesses,
however, the actual land and buildings of the community association are not
generally shown as an asset, although the association may include assets that
can be sold without an owner vote. For cash basis reports, cash usually is the only
asset.
20. Assignability pro- A contract provision stating that neither party may assign its obligations under the
vision contract to any other person without the express written consent of the other party.
The contract should specifically state that the contractor cannot use subcontractors
without the association's permission.
21. Association-em- An individual who is directly employed by the association to manage the commu-
ployed manager nity's operations. The role of the manager is to: 1) Provide information, training,
and leadership on community association operations to the board, committees,
and the community at large, 2) Foster a sense of community awareness and spirit
within the residents, 3) Develop a body of leadership through the committee
structure , and 4) Provide the necessary administrative tools to the board to enable
it to make wise, informed decisions on both short-term and long-term actions and
goals.
22. Audit An examination of the accounting records and procedures of an organization
by a certified public accountant (CPA) for the purpose of verifying the accuracy
and completeness of financial records. An annual audit may be required by your
