M 100 The Essentials of Community Association Management
Community Association - ANSWER:Legal entity in which the owners enjoy the protection, enhancement,
maintenance, and preservation of their homes and property
Three defining characteristics of Community Association - ANSWER:Mandatory Membership, Mutually
Binding Documents, and Lien-Based Assessments
Mandatory Membership - ANSWER:Membership in the community association is mandatory and
automatic for all owners
Mutually Binding Documents - ANSWER:Certain association governing documents bind the owner and
the association to each other through mandated actions
Lien-Based Assessments - ANSWER:Mandatory lien-based assessments (maintenance fees) are levied on
each owner in order to operate and maintain the community association
Three types of Community Associations - ANSWER:Planned Community, Condominium, Cooperative
Planned Community - ANSWER:The most common type of community association. Owner owns his/her
lot and/or living unit. Community owns any common area for use and benefit of lot owners
Condominium - ANSWER:An individual owns: (1) His/Her living unit and (2) An undivided interest in the
common elements of the community. *Each owner owns a percentage of the common elements
Cooperative - ANSWER:An individual owns (1) owns stock or membership in the cooperative, (2) holds a
proprietary lease or occupancy agreement for his/her living unit. *another name is Stock Cooperative
Proprietary lease or occupancy agreement - ANSWER:The member or stockholders rights and obligations
in relation to the living unit
Specialized community associations - ANSWER:Master or Umbrella association, mixed-use development,
55 and older communities
Master or umbrella associations - ANSWER:Consist of more than one residential community association
Mixed-use development - ANSWER:Consists of a mixture of residential and commercial and/or industrial
uses group together. "Live. Work. Play"
55 and older communities - ANSWER:Must have one person who is 55 years of age or older living in at
least 80% of its occupied units
Sources of legal obligation - ANSWER:(1) Federal, state and local statutes, regulations and case law (2)
legal documents unique to the community association that find the association in owners (3) lender
requirements (4) Standard set professional bodies
Federal laws - ANSWER:(1) EEOC, (2) FLSA, (3) FMLA, (4) FICA, (5) OSHA
EEOC - ANSWER:The Equal Employment Opportunity Commission.
, Prohibits discrimination in hiring promotion dismissal etc.
FLSA - ANSWER:The Fair Labor Standards Act dictates standards for the basic minimum wage and
overtime pay
FMLA - ANSWER:The Family Medical Leave Act provides for unpaid leave for various medical issues
FICA - ANSWER:The Federal Insurance Contributions Act governs employee and employer contributions
to Social Security
OSHA - ANSWER:The Occupational Safety and Health Administration outlines safety guidelines for
employees
Declarations, CC&Rs, or Master Deeds - ANSWER:(1) Establish the chain of title and rights of ownership
for each piece of real estate, (2) They set up the charter of the community association and typically
detail voting rights remembers using rights of common property and limits on assessment fees, (3) They
legally obligate purchasers of homes or units to follow them and become binding on all owners once the
developer sells the first homes or unit, (4) All three terms are sometimes used interchangeably
Proprietary lease for occupancy agreement - ANSWER:Defines the member or stockholders rights and
obligations in relation to the living unit in a cooperative
Articles of incorporation - ANSWER:Documents that establish the corporation, if the association is
incorporated
Bylaws - ANSWER:Formally adopted regulations for the administration and management of a community
association, such as board member election, member voting rights, calling and conducting meetings, and
duties of the board members
Resolutions - ANSWER:A motion that follows a set format and is formally adopted by the Board of
Directors
Four types of resolutions (GASP) - ANSWER:(1) General resolutions, (2) administrative resolutions, (3)
special resolutions (4) policy resolutions
Public offering statement - ANSWER:This is a disclosure statement that provides information on the
community association to the first perspective buyers and a new development. This is not governing
document, but is often accompanied by them.
Hierarchy of documents - ANSWER:Documents fall into hierarchy of authority. The higher a document's
place in the hierarchy, the greater it's legal weight in a court of law. Whenever there is a conflict, the
higher document will prevail
Real estate laws - ANSWER:(1) FDCPA, (2) FHA, (3) FCC, (4), SSCRA, U.S. Bankruptcy Code
FDCPA - ANSWER:The Fair Debt Collection Practices Act Protects debtors from unscrupulous debt
collectors
FHA - ANSWER:The Fair Housing Act prohibits discrimination in the sale, rental, financing, ensuring and
other housing related services of drawings based on race, color, religion, national origin, gender,
disability or familial status
Community Association - ANSWER:Legal entity in which the owners enjoy the protection, enhancement,
maintenance, and preservation of their homes and property
Three defining characteristics of Community Association - ANSWER:Mandatory Membership, Mutually
Binding Documents, and Lien-Based Assessments
Mandatory Membership - ANSWER:Membership in the community association is mandatory and
automatic for all owners
Mutually Binding Documents - ANSWER:Certain association governing documents bind the owner and
the association to each other through mandated actions
Lien-Based Assessments - ANSWER:Mandatory lien-based assessments (maintenance fees) are levied on
each owner in order to operate and maintain the community association
Three types of Community Associations - ANSWER:Planned Community, Condominium, Cooperative
Planned Community - ANSWER:The most common type of community association. Owner owns his/her
lot and/or living unit. Community owns any common area for use and benefit of lot owners
Condominium - ANSWER:An individual owns: (1) His/Her living unit and (2) An undivided interest in the
common elements of the community. *Each owner owns a percentage of the common elements
Cooperative - ANSWER:An individual owns (1) owns stock or membership in the cooperative, (2) holds a
proprietary lease or occupancy agreement for his/her living unit. *another name is Stock Cooperative
Proprietary lease or occupancy agreement - ANSWER:The member or stockholders rights and obligations
in relation to the living unit
Specialized community associations - ANSWER:Master or Umbrella association, mixed-use development,
55 and older communities
Master or umbrella associations - ANSWER:Consist of more than one residential community association
Mixed-use development - ANSWER:Consists of a mixture of residential and commercial and/or industrial
uses group together. "Live. Work. Play"
55 and older communities - ANSWER:Must have one person who is 55 years of age or older living in at
least 80% of its occupied units
Sources of legal obligation - ANSWER:(1) Federal, state and local statutes, regulations and case law (2)
legal documents unique to the community association that find the association in owners (3) lender
requirements (4) Standard set professional bodies
Federal laws - ANSWER:(1) EEOC, (2) FLSA, (3) FMLA, (4) FICA, (5) OSHA
EEOC - ANSWER:The Equal Employment Opportunity Commission.
, Prohibits discrimination in hiring promotion dismissal etc.
FLSA - ANSWER:The Fair Labor Standards Act dictates standards for the basic minimum wage and
overtime pay
FMLA - ANSWER:The Family Medical Leave Act provides for unpaid leave for various medical issues
FICA - ANSWER:The Federal Insurance Contributions Act governs employee and employer contributions
to Social Security
OSHA - ANSWER:The Occupational Safety and Health Administration outlines safety guidelines for
employees
Declarations, CC&Rs, or Master Deeds - ANSWER:(1) Establish the chain of title and rights of ownership
for each piece of real estate, (2) They set up the charter of the community association and typically
detail voting rights remembers using rights of common property and limits on assessment fees, (3) They
legally obligate purchasers of homes or units to follow them and become binding on all owners once the
developer sells the first homes or unit, (4) All three terms are sometimes used interchangeably
Proprietary lease for occupancy agreement - ANSWER:Defines the member or stockholders rights and
obligations in relation to the living unit in a cooperative
Articles of incorporation - ANSWER:Documents that establish the corporation, if the association is
incorporated
Bylaws - ANSWER:Formally adopted regulations for the administration and management of a community
association, such as board member election, member voting rights, calling and conducting meetings, and
duties of the board members
Resolutions - ANSWER:A motion that follows a set format and is formally adopted by the Board of
Directors
Four types of resolutions (GASP) - ANSWER:(1) General resolutions, (2) administrative resolutions, (3)
special resolutions (4) policy resolutions
Public offering statement - ANSWER:This is a disclosure statement that provides information on the
community association to the first perspective buyers and a new development. This is not governing
document, but is often accompanied by them.
Hierarchy of documents - ANSWER:Documents fall into hierarchy of authority. The higher a document's
place in the hierarchy, the greater it's legal weight in a court of law. Whenever there is a conflict, the
higher document will prevail
Real estate laws - ANSWER:(1) FDCPA, (2) FHA, (3) FCC, (4), SSCRA, U.S. Bankruptcy Code
FDCPA - ANSWER:The Fair Debt Collection Practices Act Protects debtors from unscrupulous debt
collectors
FHA - ANSWER:The Fair Housing Act prohibits discrimination in the sale, rental, financing, ensuring and
other housing related services of drawings based on race, color, religion, national origin, gender,
disability or familial status
