M 100 The Essentials of Community Association Management
community association - ANSWER:legal entity in which the owners enjoy the protection, enhancement,
maintenance & preservation of their homes & property
community association has 3 defining characteristics - ANSWER:Membership in the community is
mandatory & automatic for all owners; certain association docs bind the owner & the association to each
other through mandated actions; mandatory lien-based assessments (maintenance fees) are levied on
each owner in order to operate & maintain the community assocation
lien - ANSWER: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.
What does the lien do? - ANSWER:Placing a lien on an owner's property protects the community
association's interests. It encourages payment of the debt. Consequence of lien is the owner cant sell or
transfer the unit without settling the debt.
Purpose of a community assocation - ANSWER:to provide for the community, business, & governance
aspects of the association. This is achieved by administering, maintaining, & enhancing a residential real
estate development, and through the establishment of a system of property rights, binding covenants &
restrictions, & rules & regulations.
3 basic types of residential community associations (1) - ANSWER:Planned community; owner owns his
unit ; community owns any common areas such as tennis courts, for the use & benefit of the lot owners
second type - ANSWER:Condominium; owner owns his living unit & an undivided interest in the common
elements of the community. Each owner owns a % of the common elements, which consist of everything
except the living units.
third type - ANSWER:Cooperative; person owns stock or membership; holds a proprietary lease or
occupancy agreement for his living unit
Proprietary lease or occupancy agreement - ANSWER:defines the member or stockholders' rights &
obligations in relation to the living unit. The community association owns all of the real estate as a not-
for-profit corporation.
3 types of residential community associations can exist by themselves or can be group in clusters called: -
ANSWER:Master or umbrella associations: consists of more than 1 residential community association.
Second type - ANSWER:Mixed-use development-consists of a mixture of residential & commercial &/or
industrial uses grouped together.
Third type - ANSWER:55 & older communities; must have 1 person who is 55 of age or older living in at
least 80% of occupied units.
Sources of legal obligations for a community association - ANSWER:Federal, state & local statues,
regulations, & case law
, second source - ANSWER:legal documents unique to the community association that bind the
association & its owners
third source - ANSWER:lender requirements; requirements set by secondary institutions (ex; FHA, Fannie
Mae)
fourth source - ANSWER:standards set by professional bodies; ex: auditing standards set the American
Institute of CPAs
Types of Federal Laws applying to community associations - ANSWER:Equal employment opportunity
commission (EEOC); federal govt prohibits discrimination against otherwise qualified people in hiring,
promotion, dismissal, based on specific characteristics like race & ethnicity, age, color, gender, religion
second federal law - ANSWER:Fair Debt Collection Practices act: protect debtors from unscrupulous debt
collects & to impose a consistent & fair method to collect debts.
third federal law - ANSWER:Fair Labor & standards act (FSLA); dictates standards for the basic minimum
wage & overtime pay
fourth federal law - ANSWER:Family & 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 birth or
adoption of a child or serious illness of the employee or spouse, child or parent.
fifth federal law - ANSWER:Federal Insurance contributions act (FICA)
sixth federal law - ANSWER:Occupational Safety & Health Act (OSHA)
7th federal law - ANSWER:US Bankruptcy code
8th federal law - ANSWER:Fair housing Act
Highlights of fair housing act - ANSWER:Reasonable accommodations/modifications; they created a new
class of protected individuals - those w/ disabilities
- ANSWER:Maintenance: a person with a disability can sue the association for failing to maintain
physical components of the community needed by the resident.
- ANSWER:Pets/Service Animals; No difference between having a pet to help with physical disability or
mental disability
State Statues - ANSWER:Statutes are laws written & adopted by legislatures or administrative agencies: 3
types of state statutes that apply to community associations:
General State Statutes - ANSWER:One that applies to community associations, as well as to other types
of organizations
Specific state statutes - ANSWER:One that applies only to 1 or more types of community associations
Uniform state statutes - ANSWER:National conference of commissioners on uniform state laws draft
generic, content-specific wording for topical issues to encourage uniformity among the states
community association - ANSWER:legal entity in which the owners enjoy the protection, enhancement,
maintenance & preservation of their homes & property
community association has 3 defining characteristics - ANSWER:Membership in the community is
mandatory & automatic for all owners; certain association docs bind the owner & the association to each
other through mandated actions; mandatory lien-based assessments (maintenance fees) are levied on
each owner in order to operate & maintain the community assocation
lien - ANSWER: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.
What does the lien do? - ANSWER:Placing a lien on an owner's property protects the community
association's interests. It encourages payment of the debt. Consequence of lien is the owner cant sell or
transfer the unit without settling the debt.
Purpose of a community assocation - ANSWER:to provide for the community, business, & governance
aspects of the association. This is achieved by administering, maintaining, & enhancing a residential real
estate development, and through the establishment of a system of property rights, binding covenants &
restrictions, & rules & regulations.
3 basic types of residential community associations (1) - ANSWER:Planned community; owner owns his
unit ; community owns any common areas such as tennis courts, for the use & benefit of the lot owners
second type - ANSWER:Condominium; owner owns his living unit & an undivided interest in the common
elements of the community. Each owner owns a % of the common elements, which consist of everything
except the living units.
third type - ANSWER:Cooperative; person owns stock or membership; holds a proprietary lease or
occupancy agreement for his living unit
Proprietary lease or occupancy agreement - ANSWER:defines the member or stockholders' rights &
obligations in relation to the living unit. The community association owns all of the real estate as a not-
for-profit corporation.
3 types of residential community associations can exist by themselves or can be group in clusters called: -
ANSWER:Master or umbrella associations: consists of more than 1 residential community association.
Second type - ANSWER:Mixed-use development-consists of a mixture of residential & commercial &/or
industrial uses grouped together.
Third type - ANSWER:55 & older communities; must have 1 person who is 55 of age or older living in at
least 80% of occupied units.
Sources of legal obligations for a community association - ANSWER:Federal, state & local statues,
regulations, & case law
, second source - ANSWER:legal documents unique to the community association that bind the
association & its owners
third source - ANSWER:lender requirements; requirements set by secondary institutions (ex; FHA, Fannie
Mae)
fourth source - ANSWER:standards set by professional bodies; ex: auditing standards set the American
Institute of CPAs
Types of Federal Laws applying to community associations - ANSWER:Equal employment opportunity
commission (EEOC); federal govt prohibits discrimination against otherwise qualified people in hiring,
promotion, dismissal, based on specific characteristics like race & ethnicity, age, color, gender, religion
second federal law - ANSWER:Fair Debt Collection Practices act: protect debtors from unscrupulous debt
collects & to impose a consistent & fair method to collect debts.
third federal law - ANSWER:Fair Labor & standards act (FSLA); dictates standards for the basic minimum
wage & overtime pay
fourth federal law - ANSWER:Family & 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 birth or
adoption of a child or serious illness of the employee or spouse, child or parent.
fifth federal law - ANSWER:Federal Insurance contributions act (FICA)
sixth federal law - ANSWER:Occupational Safety & Health Act (OSHA)
7th federal law - ANSWER:US Bankruptcy code
8th federal law - ANSWER:Fair housing Act
Highlights of fair housing act - ANSWER:Reasonable accommodations/modifications; they created a new
class of protected individuals - those w/ disabilities
- ANSWER:Maintenance: a person with a disability can sue the association for failing to maintain
physical components of the community needed by the resident.
- ANSWER:Pets/Service Animals; No difference between having a pet to help with physical disability or
mental disability
State Statues - ANSWER:Statutes are laws written & adopted by legislatures or administrative agencies: 3
types of state statutes that apply to community associations:
General State Statutes - ANSWER:One that applies to community associations, as well as to other types
of organizations
Specific state statutes - ANSWER:One that applies only to 1 or more types of community associations
Uniform state statutes - ANSWER:National conference of commissioners on uniform state laws draft
generic, content-specific wording for topical issues to encourage uniformity among the states
