M-100 THE ESSENTIALS OF COMMUNITY
ASSOCIATION MANAGEMENT | NEW 2026 UPDATE |
QUESTIONS AND ANSWERS | 100% CORRECT!!
Characteristics of a Community Association Answer - Mandatory membership
Mutually binding documents
Lien-based assessments
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.
Uniform - National Conference of Commissioners draft generic content-specific
wording to encourage uniformity among the states.
Purpose of Community Association Governing Documents Answer - Provide
legal structure and operation of a community association.
ASSOCIATION MANAGEMENT | NEW 2026 UPDATE |
QUESTIONS AND ANSWERS | 100% CORRECT!!
Characteristics of a Community Association Answer - Mandatory membership
Mutually binding documents
Lien-based assessments
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.
Uniform - National Conference of Commissioners draft generic content-specific
wording to encourage uniformity among the states.
Purpose of Community Association Governing Documents Answer - Provide
legal structure and operation of a community association.
