M100 COMMUNITY ASSOCIATION MANAGEMENT WITH COMPLETE SOLUTIONS 100%

M100 COMMUNITY ASSOCIATION MANAGEMENT WITH COMPLETE SOLUTIONS 100% Each of the following are key characteristics of community associations EXCEPT: a. Mandatory lien-based economic charges or assessments are levied on each owner in order to operate and maintain the community association. b. Membership in the community association is mandatory and automatic for all owners. c. A requirement of community association ownership is serving on the board of directors. d. Certain documents bind all owners to be governed by the community association. c. A requirement of community association ownership is serving on the board of directors. This is one of the three key characteristics common to all community associations. Members of an association are not legally required to serve on the board of directors; however, the overall success on the community is dependent upon the members' involvement its affairs. True or False. The primary purpose of a community association is to provide for the governance, business, and communal aspects of the association. True Providing for the governance, business, and communal aspects of the association is achieved by administering, maintaining, and enhancing a residential real estate development, and through the establishment of a system of property rights, binding covenants and restrictions, and rules and regulations. Previous Play Next Rewind 10 seconds Move forward 10 seconds Unmute 0:00 / 0:15 Full screen Brainpower Read More Each of the following are basic types of residential community associations EXCEPT: a. Planned community b. Townhouse c. Cooperative d. Condominium b. Townhouse While many community associations are indeed townhouse communities, not all such developments are necessarily associations. A community association is defined in terms of ownership rights—not architectural style. Adoption of the annual budget is an example of which of the following type of resolution? a. policy resolution b. administrative resolution c. special resolution d. general resolution d. general resolution General resolutions involve routine events such as adoption of the annual budget. True or false. The purpose of a community association's governing documents is to provide for the legal structure and operation of the community. True The governing documents define the rights and obligations of both the community association and its owners, create a binding relationship between each owner and the community association, and establish the mechanisms for governing and funding the community association's operations. True or false. According to the general hierarchy of authority for governing documents, the bylaws would control in a conflict with the recorded map, plat, or plan. False As a general rule, documents lower in the hierarchy of authority cannot conflict with or change the terms of those above them. The recorded map, plat, or plan is above the bylaws in the hierarchy, and therefore would prevail in such a conflict. Complete the following sentence: A __________ state statute is one that applies only to one or more types of community associations. a. general b. complex c. specific d. uniform c. specific A specific state statute is one that applies only to one or more types of community associations. For example, most states have a condominium act which provides for the establishment and operation of condominiums as legal entities. These acts vary in terms of their complexity—the simplest ones just allow for the creation of condominiums. True or false. A proprietary lease or occupancy agreement in a cooperative defines the member or stockholder's rights and obligations in relation to the living unit. True In a cooperative, the proprietary lease or occupancy agreement serves generally the same purpose as the declaration, CC&R, or master deed in other community associations. Among other things, the proprietary lease or occupancy agreement identifies the premises that the stockholder is permitted to occupy exclusively, defines the term of the lease and the rent that is payable by the stockholder, and establishes the powers and obligations of the cooperative's board of directors, including assessment rights. Complete the following sentence: The __________ bring the community association into existence, define its basic purposes and powers, and indicate whether stock will be issued. a. recorded map, plat, or plan b. declaration, CC&Rs, or master deed c. proprietary lease or occupancy agreement d. articles of incorporation d. articles of incorporation A community association's corporate structure is established when a developer sets up the association. The developer files articles of incorporation—sometimes called a corporate charter—with the appropriate state corporation agency. True or False. The public offering statement is a governing document, as it often distributed along with the governing documents. False The public offering statement is not a governing document; instead, it is simply a disclosure statement that provides information on the community association to prospective buyers. Each of the following legal sources specify management authority and responsibilities for community associations EXCEPT: a. survey data b. state statutes c. community association governing documents d. court decisions a. survey data All three types of legal sources—state statutes, governing documents, and court decisions—specify the authority or power of different parties in a community association and the responsibilities or duties of the different parties. True or false. The basic authority in a community association lies with the developer. False The basic authority in a community association lies with the owners. In order for the association to govern effectively the owners elect a board of directors to act on their behalf. The governing documents delegate most of the association's decision-making powers to a board. Complete the following sentence: The board of directors in a community association has a _____________ to act in the best interests and for the benefit of the community as a whole. a. bond b. fiduciary duty c. ballot d. quorum b. fiduciary duty The board's fiduciary duty has two components: (1) Board members are required to avoid conflicts of interest and acting out of self-interest. (2) They are also required to act as reasonable people in managing the association's affairs. True or false. The "business judgment rule" means that if a board has exercised reasonable business judgment in making a decision, the court will generally not consider the board negligent in its fiduciary duty. True Through judicial decision, a substantial body of law has developed concerning the standards to which directors must conform while conducting a community association's affairs. Many courts apply the "business judgment rule" to a board's actions. Which of the following community association committees typically are assigned responsibilities related to elections, nominations, and architectural standards? a. standing committees b. professional committees c. ad hoc committees d. mandatory committees d. mandatory committees A mandatory committee is one that is required by the governing documents. Mandatory committees typically are assigned responsibilities related to elections, nominations, and architectural standards. True or false. The role of the professional community association manager is to make all decisions for the association and to delegate information-gathering and fact-finding support to the board of directors. False The professional community association manager is charged with assisting the board of directors' decision making process by means of providing information-gathering and fact-finding support, implementing the decisions of the board; and administering the services, programs, and operations of the community association within the policies and guidelines set by the board. In which of the following forms of community association management is the association managed by the board itself or by committees under the direction of the board? a. management company b. volunteer or self-management c. association-employed manager d. municipal management b. volunteer or self-management Self-managed community associations make up a majority of all associations in the United States; approximately 150,000 self-managed community associations currently exist in the U.S. In self managed associations, the board itself is responsible for all community association functions, including maintaining accounting records, preparing budgets, collecting dues, and staying informed about association resources and best practices. True or false. An increase in assessment delinquencies that is not due to a poor economy may be an example of a warning sign of a weak management situation. True When assessment delinquencies increase, the manager should investigate the reasons for the increase as soon as possible and as objectively as he or she can. In addition, if the demands of the community association and the board of directors are unreasonable or exceed the manager's ability to perform the required services, it is the manager's responsibility to communicate this to the board before it creates a weak management situation. Complete the following sentence: A ________________ is a statement of goals and objectives approved by the board that includes the yearly cycle of tasks that management should perform on the community association's behalf. a. management audit b. management contract c. management plan d. employment agreement c. management plan Typically, a management plan includes tasks that address the community association's governance, business, and community aspects. Managers should have a management plan so both they and their boards are clear on what is expected. In most instances, it will be up to the manager to propose a plan to the board for approval. Managers should set goals for the year in relation to the community association's budget. True or false. It is ethically acceptable for a professional community association manager to arrange for a kickback for giving a contractor an association contract. False The manager of a community association has a professional duty to avoid attempting to make any secret profits when acting on the community's behalf. Arranging for a kickback for giving a contractor an association contract—without disclosing relationship to the board—constitutes making secret profits and is ethically unacceptable. Managers should review and consult the CAI codes of ethics. The Professional Community Association Manager (PCAM) code of ethics sets forth the general and technical standards for integrity and objectivity, professional courtesy, conflict of interest, use of client funds, and limitations of practice. Reasons for establishing community rules and architectural guidelines include each of the following EXCEPT: a. There is the need to create a sense of fairness and equity among residents. b. In contemporary society, people are more likely to question and challenge authority. c. In cases where rules have been poorly developed or enforced, the courts are ruling against community associations. d. Fines imposed on residents who break community rules are frequently the primary source of association income. d. Fines imposed on residents who break community rules are frequently the primary source of association income. Careful rule making and enforcement are essential for community associations. Rules should never be passed simply to collect income for the association—they must be necessary and intended to contribute to the betterment of the community. True or false. According to the general hierarchy of authority for operating community associations, rules and regulations take precedence over the articles of incorporation. False The hierarchy of authority means that rules and architectural guidelines may not contradict or be in conflict with the legal sources that take precedence over them. Although rules and architectural guidelines are lower in the hierarchy of authority for community associations, they may clarify and expand a community's governing documents—but may not conflict with the other governing documents, such as the articles of incorporation. Which of the following is an example of an architectural guideline? a. pets b. noise c. fencing d. parking c. fencing An architectural guideline is a rule that applies to the appearance of an owner's lot or the exterior of his or her unit or improvements, such as fencing. A rule is a specific statement of required behavior whose violation carries a penalty. Pets, noise, and parking are all examples of areas that often prompt community association rules. Each of the following are benefits to using the resolution process to adopt rules EXCEPT: a. Provides an oral record of all rules made b. Protects owners from arbitrary board actions c. Protects the community from charges that could result in inoperable rules d. Provides for consistency in making and wording rules There are several benefits to using the resolution process to adopt rules, as opposed to using the simpler process of making motions. Among these benefits is that it provides a formal, written record of all rules made. Each of the following are sections of a resolution EXCEPT: a. Authority b. Purpose c. Scope and Intent d. Self help d. Self help The fourth component of a resolution is the specifications section (instead of self help). This section states clearly and completely what those bound by the rule will be expected to do. Which of the following is not one of the basic steps in a due process procedure? a. Issue a “cease and desist” letter b. Issue a hearing notice if the violation does not end within the stated time c. Hold the scheduled hearing if the violation does not end within the stated time d. Issue a decision before a hearing is held d. Issue a decision before a hearing is held The hearing panel should issue a decision only after a hearing is held. The hearing panel determines the facts, whether or not a rule has been violated, the penalty to be imposed, if any, and the enforcement date of the penalty, if any. The hearing panel then issues this information in the form of a decision. True or false. Using alternative dispute resolution to encourage residents to comply with rules and guidelines is more costly and time consuming than going through the court system. False Alternative dispute resolution (ADR) involves submitting a dispute to a trained, uninvolved third party for assistance with resolution. The third party's decision may be nonbonding or the third party may merely act as a facilitator in the case of a mediator. However, this approach can be a more efficient and effective way to resolve a dispute than other means. A community association might propose ADR when confronted with a difficult rule enforcement situation or the possibility of prolonged litigation. In many jurisdictions ADR is either required or encouraged before filing suit or during suit, but before trial. Which of the following is an internal resource a community can use to encourage an owner or tenant to conform to community association rules? a. Relying on the local health department to determine the appropriate number of occupants in a unit b. Asking for the local zoning department's help in removing vehicles, boats, and trailers from lots and common areas c. Having the police enforce traffic regulations d. Suspending an owner's voting rights d. Suspending an owner's voting rights Suspending an owner's voting rights is an example of an internal resource a community association can use to encourage residents to obey association rules. While this may be a rather mild action, it can be a very useful resource for encouraging rule violators to conform to community association rules. Each of the other examples listed are examples of external resources available to community associations. True or false. To increase the likelihood that a court of law will uphold an association's enforcement of architectural guidelines, the board of directors should turn a blind eye towards violations and permit unapproved architectural changes to exist. False A manager should advise a board of any violations of architectural guidelines as soon as they are discovered—for example, during inspection of the property. The board should also refrain from turning a blind eye towards violations. They should report any known violations to the manager in a timely manner. If unapproved architectural changes are permitted to exist, the association may be hindered if it later tries to enforce the rule that was violated. Which of the following responsibilities relate to the governance function of a community association board of directors? a. Decide issues of policy for the owners in the community b. Promote harmony through service programs and regular communication with owners c. Monitor financial matters for the purpose of preserving and enhancing the community d. Hear appeals of committee and management decisions that are protested by groups of owners a. Decide issues of policy for the owners in the community There are three areas of board decision making which relate to the three functions of a community association board of directors: business, governance, and community. As volunteer leaders responsible for governing an organization, a board must decide issues of policy for the owners in the community. Complete the following sentence: A notice of meeting should be sent in writing to board members at least _________ before a meeting. a. a year b. 2 days c. 3 months d. a week d. a week Community managers should send a notice of meeting in writing to board members at least a week before a meeting. Exactly how far in advance a notice of meeting can be sent may be set by a community association's governing documents. True or false. An agenda is more than an announcement of the order of business for a meeting; it is a meeting management tool. True By specifying the duration of a meeting in the agenda or allotting agenda items specific amounts of time, managers are helping the board to proceed with its business in a timely manner. Note that meetings that run more than two hours often degenerate into an unproductive effort. In addition to a meeting agenda, board members should receive each of the following supporting materials prior to a meeting EXCEPT: a. Minutes from the last meeting b. Financial reports c. Community newsletter d. Committee reports c. Community newsletter In a properly prepared board meeting, all members should have had all the information needed for discussion before the meeting. The community newsletter is not typically an item required to conduct a board meeting. True or false. It is perfectly acceptable to hold a board meeting in the home of the association president. False If a community association does not have a meeting room, board meetings should be scheduled in public places. Avoid meetings in homes of board members, as the space will not always be adequate. Nor is a board member's home a public and neutral site that will encourage owners' attendance. Which of the following is not one of the basic principles of parliamentary procedure that apply to every meeting? a. Minority rule b. Justice c. Courtesy d. Protection of Rights a. Minority rule Parliamentary procedure recognizes a few basic principles of conduct for every meeting, including majority rule (instead of minority rule). Majority rule means that the will of the majority should decide issues. True or false. A board of directors can legally conduct the business of the association without a quorum. False A quorum is the number of members required to be present for the board to legally conduct the business of the association. In the absence of a quorum, the only formal actions a board may take are