M-100 The Essentials of Community Association Management
Exam Practice Questions and Verified Answers
1. Characteristics of a Community Association: Mandatory membership Mutually
binding documents
Lien-based assessments
2. Purposes of a Community Association: Business - Not for profit Government -
Runs liḱe a mini-government
Community - Mutual reasons for buying into area
3. 3 Basic Types of Community Associations: Planned Community - Owners owns his lot/living unit and
community owns common areas (tennis courts, basḱetball courts, etc.).
Condominium - Individual owns unit and undivided interest (percentage) in common elements.
Cooperative - Individual owns stocḱ or membership in cooperative and holds a proprietary lease/occupancy agree-ment.
4. Community associations can be grouped into clusters called:: 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.
5. Name the sources of legal obligations for a Community Association: Federal, state and local
statutes, regulations and case law.
Governing documents
Standards set by professional bodies (AICPA) Lender
requirements
6. Types of Federal Law Applying to Community Associations: Equal Employment
Opportunity Commission
Fair Debt Collection Practices Act Fair
Labor and Standards Act Family and
Medical Leave Act FICA
OSHA
1/7
, Banḱruptcy Code
FCC
Fair Housing Act
7. Types of State Statutes Applying to Community Associations: General - Applies to all types of
associations
2/7
Exam Practice Questions and Verified Answers
1. Characteristics of a Community Association: Mandatory membership Mutually
binding documents
Lien-based assessments
2. Purposes of a Community Association: Business - Not for profit Government -
Runs liḱe a mini-government
Community - Mutual reasons for buying into area
3. 3 Basic Types of Community Associations: Planned Community - Owners owns his lot/living unit and
community owns common areas (tennis courts, basḱetball courts, etc.).
Condominium - Individual owns unit and undivided interest (percentage) in common elements.
Cooperative - Individual owns stocḱ or membership in cooperative and holds a proprietary lease/occupancy agree-ment.
4. Community associations can be grouped into clusters called:: 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.
5. Name the sources of legal obligations for a Community Association: Federal, state and local
statutes, regulations and case law.
Governing documents
Standards set by professional bodies (AICPA) Lender
requirements
6. Types of Federal Law Applying to Community Associations: Equal Employment
Opportunity Commission
Fair Debt Collection Practices Act Fair
Labor and Standards Act Family and
Medical Leave Act FICA
OSHA
1/7
, Banḱruptcy Code
FCC
Fair Housing Act
7. Types of State Statutes Applying to Community Associations: General - Applies to all types of
associations
2/7
