M-100 Study Guide
Threeidistincticharacteristicsiofiaicommunityiassociationi-i
iiiiiiiiiiiii ☑️iiMandatoryimembership,imutuallyibindingidocumentsiandilien-basediassessments
Theiprimaryipurposeiofiaicommunityiassociationiisitoiprovideiforithe:i-i
iiiiiiiiiiiii ☑️iicommunity,ibusiness,iandigovernanceiaspectsiofitheiassociation.
Theithreeibasicitypesiofiresidentialicommunityiassociations:i-i
☑️iiplannedicommunitiesi(mosticommon),icondominiumsiandicooperativesi-
iiiiiiiiiiiii
focusioniownershipiinsteadiofiarchitecturalistyle.
i
MasterioriUmbrellaiAssociationsi-i
iiiiiiiiiiiii ☑️iiisimadeiupiofiMOREiTHANiONEiresidentialicommunityiassociation.
MixediUseiDevelopmentsi(MXDs)i-i
iiiiiiiiiiiii ☑️iiaimixtureiofiresidentialiandicommercialioriindustrialispace.
"55iandiolder"icommunityi-i
☑️iiMustihaveioneipersoniwhoiisi55iyearsiofiageioriolderilivingiiniatileasti80%iofiitsioccupiediun
iiiiiiiiiiiii
its.iTheicommunityimustibeidesignatedi"55iandiolder"itoiqualifyiasithisitypeiofihousingithatilegall
yiprohibitsichildreniandilimitsioccupancyitoiaicertainiageispan.iTheidesignationiprocessiinvolvesis
ubmittingiapplicationsiandiobtainingiapprovalibeforeianyienforcementiofitheiagesiofiresidentsico
mmences.iApprovalifromitheiDepartmentiofiHousingiandiUrbaniDevelopmenti(HUD)imustibeire
ceivedibeforeiconstructionibegins.
Sourcesiofilegaliobligationi-i
☑️ii1.iFederal,istateiandilocalistatutes,iregulationsiandicaseilawi
iiiiiiiiiiiii
2.iLegalidocumentsiuniqueitoitheicommunityiassociationithaticanibinditheiassociationiandiitsiowner
3.iLenderirequirementsi-
isetibyisecondaryimortgageiinstitutionsi(i.e.,iFHA,iFannieiMae,iFreddieiMac,ietc.)i
4.iStandardsisetibyiprofessionalibodiesi-ii.e.,iauditingistandardsisetibyiAICPAi(CPA's).
EqualiEmploymentiOpportunityiCommissioni(EEOC)i-i
☑️iiprohibitsidiscriminationiinihiring,ipromotioniandidismissal,icompensationiandiworkingic
iiiiiiiiiiiii
onditionsibasedionipersonalicharacteristicsiincluding:i
-iraceiandiethnicityi
,-icolori
-inationaliorigin
-iagei
-igender
-ireligion
-ipregnancy
-idisability
FairiLaboriStandardsiActi(FSLA)i-i
☑️iiDictatesistandardsiforitheibasiciminimumiwageiandiovertimeipay.iItiaffectsimostiprivateia
iiiiiiiiiiiii
ndipubliciemploymentiandirequiresiemployersitoipayicoverediemployeesiwhoiareinotiotherwiseiex
emptiatileastiatitheifederaliminimumiwageiandiovertimeipayiofione-and-one-half-
timesitheiregularirateiofipay.iSomeistatesihaveihigheribasiciminimumiwageiamounts.i
Source:iDOL
FamilyiandiMedicaliLeaveiActi(FMLA)i-i
☑️iigovernsiemployeeiandiemployericontributionsitoiSocialiSecurityiOccupationaliSafetyiandi
iiiiiiiiiiiii
HealthiActi(OSHA)i-ioutlinesisafetyiguidelinesiforiemployees.
-irequiresiemployersiofi50iorimoreiemployeesitoiprovideiupitoi12iweeksiofiunpaid,ijob-
protectedileaveitoieligibleiemployeesiforitheibirthioriadoptioniofiaichildioriforitheiseriousiillnessiofitheie
mployeeioriaispouse,ichild,ioriparent.
FairiDebtiCollectioniPracticesiActi(FDCPA)i-i
☑️iiprotectsiconsumersifromiunfairicollectionitechniquesianditoiimposeiaiconsistentiandifairim
iiiiiiiiiiiii
ethoditoicollectidebts.
FairiHousingiActiofi1968i-i
☑️iiProhibitedidiscriminationiconcerningitheisale,irental,iandifinancingiofihousingibasedionira
iiiiiiiiiiiii
ce,icolor,ireligion,inationaliorigin,igender,idisabilityiorifamilialistatus.iIni1988,iCongressifurtheria
mendeditheilawitoiprotectipeopleiwithidisabilitiesi(handicap)iandifamilialistatus.iChildreniunderi
theiageiofi18iandiwomeniwhoiareipregnantiareialsoiprotectediunderifamilialistatus.iThisiplanialsoii
ncludesidesigniandiconstructioniaccessibilityiprovisionsiforimultifamilyidwellingsi(4iunitsiorimor
e)iwithifirstioccupancyionioriafteriMarchi13,i1991.
FederaliCommunicationsiCommissioni(FCC)/TheiTelecommunicationsiActiofi1996i-i
☑️iiregulatesiwhatirestrictionsiassociationsicaniandican'tiplaceionivideoiantennas,isatelliteidis
iiiiiiiiiiiii
hes,ietc.iItioverridesiaicommunityiassociation'sideedirestrictionithatibansisatelliteidishesiandiante
nnaeifromipropertyithatiisiexclusivelyiused,icontrolledioriownedibyitheiresident,iincludingitenant
s.
SoldiersiandiSailorsiCiviliReliefiActiofi1940i(SSCRA)i-i
☑️iirequiresitheidelayiofiallicivilicourtiactions,isuchiasibankruptcyiandiforeclosure,iuntilitheise
iiiiiiiiiiiii
rviceimemberireturnsifromiactiveiduty.iSSCRAialsoiprotectsiactiveiserviceimembers'idependents
,fromibeingievictediifitheirentidoesinotiexceedi$1,200iperimonthibyirequiringitheilandlorditoiobtai
i
niaicourtiorderiauthorizingieviction.
U.S.iBankruptcyiCodei-i
☑️iiregulatesihowiindividualsiandibusinessesicanifileiforibankruptcy.iTheipurposeiisitoihelpipe
iiiiiiiiiiiii
opleiwhoicaninoilongeripayitheiricreditorsistartianewi-
ibyiliquidatingiassetsitoipayitheiridebtsioribyicreatingiairepaymentiplan.
GeneraliStateiStatutesi-i
☑️iiAppliesitoiallitypesiofiassociations,iincludingicommunityiassociationsi(foriexample,iregula
iiiiiiiiiiiii
ricorporateiorinot-for-
profiticorporateistatutes).iMostistatesihaveitheseitypesiofilaws.iCommunityiassociationsiareieligib
leiforiincorporationiunlessitheyiareispecificallyiexcludedibyitheistatuteiitself.
SpecificiStateiStatutesi-i
☑️iiAppliesitoionlyioneiofitheitypesioficommunityiassociations,itakesiprecedenceioverianyigene
iiiiiiiiiiiii
ralistatuteianditakesiprecedenceioveritheiassociation'sigoverningidocumentsi(foriexample,icondo
miniumiact,iplannedicommunityiact).
Uniformistateistatutesi-i
☑️iiStandardizeilawsiinivariousistatesithatiaffecticommunityiassociations.iNotiallistateiunifor
iiiiiiiiiiiii
miactsiareiexactlyialike.
Sixitypesiofigoverningidocumentsiofitheicommunity:i-i
☑️ii1.iRecordedimap,iplatioriplan
iiiiiiiiiiiii
2.iDeclarations,iCC&RsioriMasteriDeeds
3.iProprietaryileaseiorioccupancyiagreement
4.iArticlesiofiincorporation
5.iBylawsi
6.iResolutions
RecordiMap,iPlatioriPlani-i
☑️iishowsitheiPRECISEiLOCATIONiofieachilotioriunit,iasiwelliasicommoniareasirecordediinit
iiiiiiiiiiiii
heiCountyioriParishiRecorder'siOfficeibeforeianyilotsioriunitsishownioniitiareisold.
Declaration,iCC&R'sioriMasteriDeedi-i
iiiiiiiiiiiii ☑️iiestablishitheichainiofititleiandirightsiofiownershipiforieachipieceiofirealiestate.iTheseirulesia
lso:i
-isetiupitheicharteriofitheicommunityiassociationianditypicallyidetailivotingirightsiforimembers,iusageiri
ghtsioficommoniproperty,iandilimitsioniassessmentifees.i
, -ilegallyiobligateipurchasersiofihomesioriunitsitoifollowithemiandibecomeibindingionialliownersionceith
eideveloperisellsitheifii1stihomeioriunit
-itheitermsiCC&Rs,imasterideediandideclarationiareisometimesiusediinterchangeably
Proprietaryileaseiorioccupancyileasei-i
☑️iidefinesitheimemberioristockholder'sirightsiandiobligationsiinirelationitoitheilivingiunitiiniai
iiiiiiiiiiiii
cooperative.i
-iidentifiesitheipremisesithatitheistockholderiisipermitteditoioccupyiexclusivelyi
-idefinesitheitermiofitheileaseianditheirenti
-iestablishesitheipowersiandiobligationsiofitheicooperative'siboardiofidirectors,iincludingiassessmentirig
htsi
-idefinesitheieventsiwhichiwouldiresultiinitheiterminationiofitheiproprietaryilease
ArticlesiofiIncorporationi(CorporateiCharter)i-i
☑️iidocumentsithatiestablishitheicorporation,iifitheiassociationiisiincorporated.iCooperativesi
iiiiiiiiiiiii
mustibeiincorporatedibecauseiitiisitheicorporationiwhoiownsitheiproperty.iCondosiandiplannedico
mmunitiesimayiorimayinotibeiincorporatedieitheribecauseiofistateimandateioriattorneyipreferenc
e.
Bylawsi-i
☑️iiFormallyiadoptedigoverningiregulationsiforitheiadministrationiandimanagementiofiaicom
iiiiiiiiiiiii
munityiassociation.iTheseilawsicover:i
-iboardimemberielection
-imemberivotingirightsi
-icallingiandiconductingimeetings
-idutiesiofitheiboardimembers
Resolutionsi-i
☑️iiaimotionithatifollowsiaisetiformatiandiisiformallyiadoptedibyitheiboardiofidirectors.iThesei
iiiiiiiiiiiii
areirulesiandiregulationsiforiallithreeitypesioficommunityiassociationsiusuallyiestablishedibyimea
nsiofiboardiresolutions.
Hierarchyiofidocumentsi-i
☑️iitheidocumentsifalliintoiaihierarchyiofiauthority.iTheihigheriaidocument'siplaceiiniaicourtio
iiiiiiiiiiiii
filaw.iHighestitoilowest:i
1.ifederalilawsiandistateistatutesi
2.irecordedimap,iplatioriplani
3.ideclarations,iCC&Rsiandimasterideeds
4.iproprietaryileaseiorioccupancyiagreementi
5.iarticlesiofiincorporationi
6.ibylawsi
7.iboardiresolutions
Benefitsiofiincorporating:i-i
Threeidistincticharacteristicsiofiaicommunityiassociationi-i
iiiiiiiiiiiii ☑️iiMandatoryimembership,imutuallyibindingidocumentsiandilien-basediassessments
Theiprimaryipurposeiofiaicommunityiassociationiisitoiprovideiforithe:i-i
iiiiiiiiiiiii ☑️iicommunity,ibusiness,iandigovernanceiaspectsiofitheiassociation.
Theithreeibasicitypesiofiresidentialicommunityiassociations:i-i
☑️iiplannedicommunitiesi(mosticommon),icondominiumsiandicooperativesi-
iiiiiiiiiiiii
focusioniownershipiinsteadiofiarchitecturalistyle.
i
MasterioriUmbrellaiAssociationsi-i
iiiiiiiiiiiii ☑️iiisimadeiupiofiMOREiTHANiONEiresidentialicommunityiassociation.
MixediUseiDevelopmentsi(MXDs)i-i
iiiiiiiiiiiii ☑️iiaimixtureiofiresidentialiandicommercialioriindustrialispace.
"55iandiolder"icommunityi-i
☑️iiMustihaveioneipersoniwhoiisi55iyearsiofiageioriolderilivingiiniatileasti80%iofiitsioccupiediun
iiiiiiiiiiiii
its.iTheicommunityimustibeidesignatedi"55iandiolder"itoiqualifyiasithisitypeiofihousingithatilegall
yiprohibitsichildreniandilimitsioccupancyitoiaicertainiageispan.iTheidesignationiprocessiinvolvesis
ubmittingiapplicationsiandiobtainingiapprovalibeforeianyienforcementiofitheiagesiofiresidentsico
mmences.iApprovalifromitheiDepartmentiofiHousingiandiUrbaniDevelopmenti(HUD)imustibeire
ceivedibeforeiconstructionibegins.
Sourcesiofilegaliobligationi-i
☑️ii1.iFederal,istateiandilocalistatutes,iregulationsiandicaseilawi
iiiiiiiiiiiii
2.iLegalidocumentsiuniqueitoitheicommunityiassociationithaticanibinditheiassociationiandiitsiowner
3.iLenderirequirementsi-
isetibyisecondaryimortgageiinstitutionsi(i.e.,iFHA,iFannieiMae,iFreddieiMac,ietc.)i
4.iStandardsisetibyiprofessionalibodiesi-ii.e.,iauditingistandardsisetibyiAICPAi(CPA's).
EqualiEmploymentiOpportunityiCommissioni(EEOC)i-i
☑️iiprohibitsidiscriminationiinihiring,ipromotioniandidismissal,icompensationiandiworkingic
iiiiiiiiiiiii
onditionsibasedionipersonalicharacteristicsiincluding:i
-iraceiandiethnicityi
,-icolori
-inationaliorigin
-iagei
-igender
-ireligion
-ipregnancy
-idisability
FairiLaboriStandardsiActi(FSLA)i-i
☑️iiDictatesistandardsiforitheibasiciminimumiwageiandiovertimeipay.iItiaffectsimostiprivateia
iiiiiiiiiiiii
ndipubliciemploymentiandirequiresiemployersitoipayicoverediemployeesiwhoiareinotiotherwiseiex
emptiatileastiatitheifederaliminimumiwageiandiovertimeipayiofione-and-one-half-
timesitheiregularirateiofipay.iSomeistatesihaveihigheribasiciminimumiwageiamounts.i
Source:iDOL
FamilyiandiMedicaliLeaveiActi(FMLA)i-i
☑️iigovernsiemployeeiandiemployericontributionsitoiSocialiSecurityiOccupationaliSafetyiandi
iiiiiiiiiiiii
HealthiActi(OSHA)i-ioutlinesisafetyiguidelinesiforiemployees.
-irequiresiemployersiofi50iorimoreiemployeesitoiprovideiupitoi12iweeksiofiunpaid,ijob-
protectedileaveitoieligibleiemployeesiforitheibirthioriadoptioniofiaichildioriforitheiseriousiillnessiofitheie
mployeeioriaispouse,ichild,ioriparent.
FairiDebtiCollectioniPracticesiActi(FDCPA)i-i
☑️iiprotectsiconsumersifromiunfairicollectionitechniquesianditoiimposeiaiconsistentiandifairim
iiiiiiiiiiiii
ethoditoicollectidebts.
FairiHousingiActiofi1968i-i
☑️iiProhibitedidiscriminationiconcerningitheisale,irental,iandifinancingiofihousingibasedionira
iiiiiiiiiiiii
ce,icolor,ireligion,inationaliorigin,igender,idisabilityiorifamilialistatus.iIni1988,iCongressifurtheria
mendeditheilawitoiprotectipeopleiwithidisabilitiesi(handicap)iandifamilialistatus.iChildreniunderi
theiageiofi18iandiwomeniwhoiareipregnantiareialsoiprotectediunderifamilialistatus.iThisiplanialsoii
ncludesidesigniandiconstructioniaccessibilityiprovisionsiforimultifamilyidwellingsi(4iunitsiorimor
e)iwithifirstioccupancyionioriafteriMarchi13,i1991.
FederaliCommunicationsiCommissioni(FCC)/TheiTelecommunicationsiActiofi1996i-i
☑️iiregulatesiwhatirestrictionsiassociationsicaniandican'tiplaceionivideoiantennas,isatelliteidis
iiiiiiiiiiiii
hes,ietc.iItioverridesiaicommunityiassociation'sideedirestrictionithatibansisatelliteidishesiandiante
nnaeifromipropertyithatiisiexclusivelyiused,icontrolledioriownedibyitheiresident,iincludingitenant
s.
SoldiersiandiSailorsiCiviliReliefiActiofi1940i(SSCRA)i-i
☑️iirequiresitheidelayiofiallicivilicourtiactions,isuchiasibankruptcyiandiforeclosure,iuntilitheise
iiiiiiiiiiiii
rviceimemberireturnsifromiactiveiduty.iSSCRAialsoiprotectsiactiveiserviceimembers'idependents
,fromibeingievictediifitheirentidoesinotiexceedi$1,200iperimonthibyirequiringitheilandlorditoiobtai
i
niaicourtiorderiauthorizingieviction.
U.S.iBankruptcyiCodei-i
☑️iiregulatesihowiindividualsiandibusinessesicanifileiforibankruptcy.iTheipurposeiisitoihelpipe
iiiiiiiiiiiii
opleiwhoicaninoilongeripayitheiricreditorsistartianewi-
ibyiliquidatingiassetsitoipayitheiridebtsioribyicreatingiairepaymentiplan.
GeneraliStateiStatutesi-i
☑️iiAppliesitoiallitypesiofiassociations,iincludingicommunityiassociationsi(foriexample,iregula
iiiiiiiiiiiii
ricorporateiorinot-for-
profiticorporateistatutes).iMostistatesihaveitheseitypesiofilaws.iCommunityiassociationsiareieligib
leiforiincorporationiunlessitheyiareispecificallyiexcludedibyitheistatuteiitself.
SpecificiStateiStatutesi-i
☑️iiAppliesitoionlyioneiofitheitypesioficommunityiassociations,itakesiprecedenceioverianyigene
iiiiiiiiiiiii
ralistatuteianditakesiprecedenceioveritheiassociation'sigoverningidocumentsi(foriexample,icondo
miniumiact,iplannedicommunityiact).
Uniformistateistatutesi-i
☑️iiStandardizeilawsiinivariousistatesithatiaffecticommunityiassociations.iNotiallistateiunifor
iiiiiiiiiiiii
miactsiareiexactlyialike.
Sixitypesiofigoverningidocumentsiofitheicommunity:i-i
☑️ii1.iRecordedimap,iplatioriplan
iiiiiiiiiiiii
2.iDeclarations,iCC&RsioriMasteriDeeds
3.iProprietaryileaseiorioccupancyiagreement
4.iArticlesiofiincorporation
5.iBylawsi
6.iResolutions
RecordiMap,iPlatioriPlani-i
☑️iishowsitheiPRECISEiLOCATIONiofieachilotioriunit,iasiwelliasicommoniareasirecordediinit
iiiiiiiiiiiii
heiCountyioriParishiRecorder'siOfficeibeforeianyilotsioriunitsishownioniitiareisold.
Declaration,iCC&R'sioriMasteriDeedi-i
iiiiiiiiiiiii ☑️iiestablishitheichainiofititleiandirightsiofiownershipiforieachipieceiofirealiestate.iTheseirulesia
lso:i
-isetiupitheicharteriofitheicommunityiassociationianditypicallyidetailivotingirightsiforimembers,iusageiri
ghtsioficommoniproperty,iandilimitsioniassessmentifees.i
, -ilegallyiobligateipurchasersiofihomesioriunitsitoifollowithemiandibecomeibindingionialliownersionceith
eideveloperisellsitheifii1stihomeioriunit
-itheitermsiCC&Rs,imasterideediandideclarationiareisometimesiusediinterchangeably
Proprietaryileaseiorioccupancyileasei-i
☑️iidefinesitheimemberioristockholder'sirightsiandiobligationsiinirelationitoitheilivingiunitiiniai
iiiiiiiiiiiii
cooperative.i
-iidentifiesitheipremisesithatitheistockholderiisipermitteditoioccupyiexclusivelyi
-idefinesitheitermiofitheileaseianditheirenti
-iestablishesitheipowersiandiobligationsiofitheicooperative'siboardiofidirectors,iincludingiassessmentirig
htsi
-idefinesitheieventsiwhichiwouldiresultiinitheiterminationiofitheiproprietaryilease
ArticlesiofiIncorporationi(CorporateiCharter)i-i
☑️iidocumentsithatiestablishitheicorporation,iifitheiassociationiisiincorporated.iCooperativesi
iiiiiiiiiiiii
mustibeiincorporatedibecauseiitiisitheicorporationiwhoiownsitheiproperty.iCondosiandiplannedico
mmunitiesimayiorimayinotibeiincorporatedieitheribecauseiofistateimandateioriattorneyipreferenc
e.
Bylawsi-i
☑️iiFormallyiadoptedigoverningiregulationsiforitheiadministrationiandimanagementiofiaicom
iiiiiiiiiiiii
munityiassociation.iTheseilawsicover:i
-iboardimemberielection
-imemberivotingirightsi
-icallingiandiconductingimeetings
-idutiesiofitheiboardimembers
Resolutionsi-i
☑️iiaimotionithatifollowsiaisetiformatiandiisiformallyiadoptedibyitheiboardiofidirectors.iThesei
iiiiiiiiiiiii
areirulesiandiregulationsiforiallithreeitypesioficommunityiassociationsiusuallyiestablishedibyimea
nsiofiboardiresolutions.
Hierarchyiofidocumentsi-i
☑️iitheidocumentsifalliintoiaihierarchyiofiauthority.iTheihigheriaidocument'siplaceiiniaicourtio
iiiiiiiiiiiii
filaw.iHighestitoilowest:i
1.ifederalilawsiandistateistatutesi
2.irecordedimap,iplatioriplani
3.ideclarations,iCC&Rsiandimasterideeds
4.iproprietaryileaseiorioccupancyiagreementi
5.iarticlesiofiincorporationi
6.ibylawsi
7.iboardiresolutions
Benefitsiofiincorporating:i-i
