M100 COMMUNITY ASSOCIATION
MANAGEMENT 2026 EXAM PREP STUDY GUIDE
COMPREHENSIVE REVIEW
◉ 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)
MANAGEMENT 2026 EXAM PREP STUDY GUIDE
COMPREHENSIVE REVIEW
◉ 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)
