M100 The Essential of Community Association
Management
Characteristics of a Community Association - ANS-Mandatory membership
Mutually binding documents
Lien-based assessments
Purposes of a Community Association - ANS-Business - Not for profit
Government - Runs like a mini-government
Community - Mutual reasons for buying into area
3 Basic Types of Community Associations - ANS-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: - ANS-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 - ANS-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 - ANS-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 - ANS-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 - ANS-Provide legal
structure and operation of a community association.
Hierarchy of Governing Documents - ANS-Recorded map, plat or plan
Declaration, CC&Rs, proprietary lease or occupancy agreement.
Articles of Incorporation
Bylaws
Board Resolutions
Declaration, CC&Rs, proprietary lease or occupancy agreement. - ANS-Declarations -
Condo
CC&Rs - Planned Community
Proprietary Lease/Occupancy Agrmt - Coop
Articles of Incorporation - ANS-Brings corporation into existence.
Coops must incorporate because the the corporation owns all the property.
Other types of communities may incorporate.
Benefits of incorporating - ANS-Limit liability of individual owners.
Right granted all corporations
Easier to deal with utility companies, vendors, etc.
Bylaws - ANS-Formally adopted regulations for the administration and management of a
community association.
- Meeting procedures including voting rights
- Board powers and duties
Board Resolutions - ANS-A motion that follows a set format and formally adopted by the
board.
Public Offering Statement - ANS-Provides association information to first prospective
buyers in community.
Required by state statute.
Not considered a governing document.
Types of Resolutions - ANS-Policy - Affects owners' rights and obligations.
Administrative - Addresses the internal operations of community association.
Special - Apply a policy or rule to a specific individual.
General - Routine events.
Criteria for Valid Rules - ANS-Must not violate constitutional rights.
Must be consistent with laws, statutes, governing docs.
Must reasonably relate to purpose of community.
Management
Characteristics of a Community Association - ANS-Mandatory membership
Mutually binding documents
Lien-based assessments
Purposes of a Community Association - ANS-Business - Not for profit
Government - Runs like a mini-government
Community - Mutual reasons for buying into area
3 Basic Types of Community Associations - ANS-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: - ANS-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 - ANS-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 - ANS-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 - ANS-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 - ANS-Provide legal
structure and operation of a community association.
Hierarchy of Governing Documents - ANS-Recorded map, plat or plan
Declaration, CC&Rs, proprietary lease or occupancy agreement.
Articles of Incorporation
Bylaws
Board Resolutions
Declaration, CC&Rs, proprietary lease or occupancy agreement. - ANS-Declarations -
Condo
CC&Rs - Planned Community
Proprietary Lease/Occupancy Agrmt - Coop
Articles of Incorporation - ANS-Brings corporation into existence.
Coops must incorporate because the the corporation owns all the property.
Other types of communities may incorporate.
Benefits of incorporating - ANS-Limit liability of individual owners.
Right granted all corporations
Easier to deal with utility companies, vendors, etc.
Bylaws - ANS-Formally adopted regulations for the administration and management of a
community association.
- Meeting procedures including voting rights
- Board powers and duties
Board Resolutions - ANS-A motion that follows a set format and formally adopted by the
board.
Public Offering Statement - ANS-Provides association information to first prospective
buyers in community.
Required by state statute.
Not considered a governing document.
Types of Resolutions - ANS-Policy - Affects owners' rights and obligations.
Administrative - Addresses the internal operations of community association.
Special - Apply a policy or rule to a specific individual.
General - Routine events.
Criteria for Valid Rules - ANS-Must not violate constitutional rights.
Must be consistent with laws, statutes, governing docs.
Must reasonably relate to purpose of community.
