M100 Community Association
Management Examination Questions
And Correct Answers (Verified Answers)
Plus Rationales 2026 Q&A Instant
Download Pdf
1. A community association manager is preparing the annual budget for a
condominium association with 150 units. The association's governing
documents require that the reserve study be updated every three years.
The most recent reserve study was completed 18 months ago and projected
a funding level of 72%. The manager notices that actual repair costs for the
common element roofing system have exceeded the reserve study
projections by 25% over the past two fiscal years. Which of the following
actions should the manager prioritize when presenting the budget to the
board of directors?
A. Recommend that the board maintain the current reserve contribution level to
avoid increasing assessments.
B. Recommend that the board commission a new reserve study immediately to
reassess the funding requirements.
C. Recommend that the board reduce the reserve contribution and increase the
operating budget for routine maintenance.
D. Recommend that the board defer all non-emergency capital repairs until the
next scheduled reserve study update.
Answer: B. Recommend that the board commission a new reserve study
immediately to reassess the funding requirements.
,*Rationale: * The manager has a fiduciary duty to ensure accurate financial
planning. The significant variance between actual and projected costs indicates
that the current reserve study assumptions may be materially inaccurate. While
governing documents may require a study every three years, professional
standards and prudent management dictate that a new study should be
commissioned when actual costs deviate substantially from projections, especially
when the funding level is already below 80%. This action allows the board to make
informed decisions based on current data, protecting the association's financial
health and avoiding special assessments or deferred maintenance issues.
2. During a board meeting, a member of the community becomes disruptive
and begins shouting at the board president, accusing the board of
mismanaging funds. The board president asks the manager to handle the
situation. What is the manager's most appropriate immediate response?
A. Call the local police department to have the member removed from the
meeting.
B. Approach the member and politely but firmly request that they refrain from
disruptive behavior and remind them of the meeting rules.
C. Ignore the outburst and continue with the meeting agenda to avoid giving
attention to the behavior.
D. Adjourn the meeting immediately and reschedule for a later date when
emotions have cooled.
Answer: B. Approach the member and politely but firmly request that they
refrain from disruptive behavior and remind them of the meeting rules.
*Rationale: * The manager's primary duty is to maintain order and facilitate the
meeting in accordance with established rules of procedure. The most appropriate
first step is to calmly and respectfully address the disruption directly, reminding
the member of the meeting's decorum rules. This approach de-escalates the
situation without resorting to extreme measures like calling police, which should
be a last resort. Ignoring the behavior undermines the board's authority, and
adjourning the meeting penalizes all attendees for one person's actions.
, 3. An association manager is reviewing the qualifications of three landscaping
vendors for a new two-year contract. The board has stipulated that the
contract must be awarded to the "lowest responsible bidder." One vendor,
who is a close personal friend of the board president, submits a bid that is
10% higher than the lowest bid. The lowest bidder has a satisfactory but not
exceptional track record. What is the manager's best course of action?
A. Recommend the lowest bidder to the board, as they meet the criteria of the
lowest responsible bidder.
B. Recommend the board president's friend, as their superior relationship may
lead to better service and communication.
C. Inform the board that all three vendors are acceptable and request that they
make the final selection without a recommendation.
D. Suggest that the board reject all bids and re-bid the contract to allow for more
competitive pricing.
Answer: A. Recommend the lowest bidder to the board, as they meet the
criteria of the lowest responsible bidder.
*Rationale: * The manager's fiduciary duty requires objective and impartial
recommendations. The term "lowest responsible bidder" implies that price is a
primary factor, provided the bidder meets all other qualifications (licensing,
insurance, references). The manager should recommend the lowest bidder if they
are deemed responsible, avoiding any appearance of favoritism or conflict of
interest. Recommending the higher bid due to personal relationships would be a
breach of ethical duty and likely violate the association's procurement policies.
4. A community association is considering amending its declaration to prohibit
the leasing of units for periods of less than six months. The board of
directors is in favor of the amendment, but the manager advises that a
specific legal threshold must be met. What is the typical threshold for
approving an amendment to the declaration in a condominium association?
A. A majority vote of the board of directors.
B. A majority vote of the unit owners present at a duly called meeting.
, C. A supermajority vote of the unit owners, often 67% to 75% of all unit owners.
D. A unanimous vote of all unit owners.
Answer: C. A supermajority vote of the unit owners, often 67% to 75% of all unit
owners.
*Rationale: * Amendments to the declaration (also known as the covenants,
conditions, and restrictions or CC&Rs) generally require a supermajority vote of all
unit owners, as this is the foundational document of the association. The specific
percentage varies by state law and the declaration itself, but it is typically a
significant majority (e.g., two-thirds or three-quarters) to ensure broad consensus
for fundamental changes. A simple majority or board vote is insufficient for such a
significant amendment.
5. The manager of a homeowners association receives a complaint from a
homeowner regarding a neighbor's fence that encroaches onto the
common area by approximately two feet. The encroachment has existed for
over ten years. The manager's initial research indicates that the original
construction of the fence was not approved by the architectural review
committee. Which of the following is the manager's most appropriate initial
action?
A. Immediately issue a violation notice and demand the removal of the fence.
B. Ignore the complaint as the encroachment has existed for over ten years.
C. Advise the complaining homeowner to hire an attorney to sue the neighbor.
D. Conduct a thorough review of the association's records regarding the fence and
consult with legal counsel.
Answer: D. Conduct a thorough review of the association's records regarding the
fence and consult with legal counsel.
*Rationale: * The manager must not act unilaterally on a legal matter with
potential long-term implications like an encroachment. Issues of adverse
possession or prescriptive easements could be involved due to the extended time
period. The manager should first gather all relevant facts from the association's
records and then seek legal advice from the association's attorney. This ensures
Management Examination Questions
And Correct Answers (Verified Answers)
Plus Rationales 2026 Q&A Instant
Download Pdf
1. A community association manager is preparing the annual budget for a
condominium association with 150 units. The association's governing
documents require that the reserve study be updated every three years.
The most recent reserve study was completed 18 months ago and projected
a funding level of 72%. The manager notices that actual repair costs for the
common element roofing system have exceeded the reserve study
projections by 25% over the past two fiscal years. Which of the following
actions should the manager prioritize when presenting the budget to the
board of directors?
A. Recommend that the board maintain the current reserve contribution level to
avoid increasing assessments.
B. Recommend that the board commission a new reserve study immediately to
reassess the funding requirements.
C. Recommend that the board reduce the reserve contribution and increase the
operating budget for routine maintenance.
D. Recommend that the board defer all non-emergency capital repairs until the
next scheduled reserve study update.
Answer: B. Recommend that the board commission a new reserve study
immediately to reassess the funding requirements.
,*Rationale: * The manager has a fiduciary duty to ensure accurate financial
planning. The significant variance between actual and projected costs indicates
that the current reserve study assumptions may be materially inaccurate. While
governing documents may require a study every three years, professional
standards and prudent management dictate that a new study should be
commissioned when actual costs deviate substantially from projections, especially
when the funding level is already below 80%. This action allows the board to make
informed decisions based on current data, protecting the association's financial
health and avoiding special assessments or deferred maintenance issues.
2. During a board meeting, a member of the community becomes disruptive
and begins shouting at the board president, accusing the board of
mismanaging funds. The board president asks the manager to handle the
situation. What is the manager's most appropriate immediate response?
A. Call the local police department to have the member removed from the
meeting.
B. Approach the member and politely but firmly request that they refrain from
disruptive behavior and remind them of the meeting rules.
C. Ignore the outburst and continue with the meeting agenda to avoid giving
attention to the behavior.
D. Adjourn the meeting immediately and reschedule for a later date when
emotions have cooled.
Answer: B. Approach the member and politely but firmly request that they
refrain from disruptive behavior and remind them of the meeting rules.
*Rationale: * The manager's primary duty is to maintain order and facilitate the
meeting in accordance with established rules of procedure. The most appropriate
first step is to calmly and respectfully address the disruption directly, reminding
the member of the meeting's decorum rules. This approach de-escalates the
situation without resorting to extreme measures like calling police, which should
be a last resort. Ignoring the behavior undermines the board's authority, and
adjourning the meeting penalizes all attendees for one person's actions.
, 3. An association manager is reviewing the qualifications of three landscaping
vendors for a new two-year contract. The board has stipulated that the
contract must be awarded to the "lowest responsible bidder." One vendor,
who is a close personal friend of the board president, submits a bid that is
10% higher than the lowest bid. The lowest bidder has a satisfactory but not
exceptional track record. What is the manager's best course of action?
A. Recommend the lowest bidder to the board, as they meet the criteria of the
lowest responsible bidder.
B. Recommend the board president's friend, as their superior relationship may
lead to better service and communication.
C. Inform the board that all three vendors are acceptable and request that they
make the final selection without a recommendation.
D. Suggest that the board reject all bids and re-bid the contract to allow for more
competitive pricing.
Answer: A. Recommend the lowest bidder to the board, as they meet the
criteria of the lowest responsible bidder.
*Rationale: * The manager's fiduciary duty requires objective and impartial
recommendations. The term "lowest responsible bidder" implies that price is a
primary factor, provided the bidder meets all other qualifications (licensing,
insurance, references). The manager should recommend the lowest bidder if they
are deemed responsible, avoiding any appearance of favoritism or conflict of
interest. Recommending the higher bid due to personal relationships would be a
breach of ethical duty and likely violate the association's procurement policies.
4. A community association is considering amending its declaration to prohibit
the leasing of units for periods of less than six months. The board of
directors is in favor of the amendment, but the manager advises that a
specific legal threshold must be met. What is the typical threshold for
approving an amendment to the declaration in a condominium association?
A. A majority vote of the board of directors.
B. A majority vote of the unit owners present at a duly called meeting.
, C. A supermajority vote of the unit owners, often 67% to 75% of all unit owners.
D. A unanimous vote of all unit owners.
Answer: C. A supermajority vote of the unit owners, often 67% to 75% of all unit
owners.
*Rationale: * Amendments to the declaration (also known as the covenants,
conditions, and restrictions or CC&Rs) generally require a supermajority vote of all
unit owners, as this is the foundational document of the association. The specific
percentage varies by state law and the declaration itself, but it is typically a
significant majority (e.g., two-thirds or three-quarters) to ensure broad consensus
for fundamental changes. A simple majority or board vote is insufficient for such a
significant amendment.
5. The manager of a homeowners association receives a complaint from a
homeowner regarding a neighbor's fence that encroaches onto the
common area by approximately two feet. The encroachment has existed for
over ten years. The manager's initial research indicates that the original
construction of the fence was not approved by the architectural review
committee. Which of the following is the manager's most appropriate initial
action?
A. Immediately issue a violation notice and demand the removal of the fence.
B. Ignore the complaint as the encroachment has existed for over ten years.
C. Advise the complaining homeowner to hire an attorney to sue the neighbor.
D. Conduct a thorough review of the association's records regarding the fence and
consult with legal counsel.
Answer: D. Conduct a thorough review of the association's records regarding the
fence and consult with legal counsel.
*Rationale: * The manager must not act unilaterally on a legal matter with
potential long-term implications like an encroachment. Issues of adverse
possession or prescriptive easements could be involved due to the extended time
period. The manager should first gather all relevant facts from the association's
records and then seek legal advice from the association's attorney. This ensures
