SOLUTIONS GRADED A+
✔✔True or false: according to the general hierarchy of authority for operating
community associations, rules and regulations take precedence over the articles of
incorporation. - ✔✔F
✔✔Which of the following is an example of an architectural guideline?
a. pets
b. noise
c. fencing
d. parking - ✔✔C
✔✔Each of the following are benefits of using the resolution process to adopt rules
except:
a. provides an informal approach to making rules
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 - ✔✔A
✔✔Each of the following are sections of a resolution except:
a. authority
b. purpose
c. scope and intent
d. self help - ✔✔D
✔✔True or false: governing documents are one of the most important sources of a
community's authority to make and enforce rules. - ✔✔T
✔✔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
✔✔True or false: using alternative dispute resolution to encourage residents to comply
with rules and guidelines is more costly and time consuming that going through the
court system. - ✔✔F
✔✔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 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
✔✔True or false: to increase the likelihood that a court of law will uphold an
association's enforcement or architectural guidelines, the board of directors should turn
a blind eye towards violations and permit unapproved architectural changes to exist. -
✔✔F
✔✔True or false: community managers are ultimately responsible for establishing,
approving, and monitoring the community's budget. - ✔✔F
✔✔Each of the following agencies are federally established secondary mortgage
institutions except:
a. Environmental Protection Agency
b. Federal National Mortgage Assocation
c. Veterans' Administration
d. Federal Home Loan Mortgage Corporation - ✔✔A
✔✔True or false: the two main components of a community budget are revenue and
expenses. - ✔✔T
✔✔Which of the following is not a typical source of revenue for a community
association?
a. owner assessments
b. major improvement expenses
c. penalty fees
d. interest - ✔✔B
✔✔Each of the following are reasons for maintaining a reserve account except:
a. maintaining a reserve account meets legal, fiduciary, and professional requirements
b. maintaining a reserve account increases the likelihood that an association will require
a special assessment
c. maintaining a reserve account equalizes the contributions of old and new owners
d. maintaining a reserve account enhances resale values - ✔✔B
✔✔Which of the following is an example of a discretionary line item in a community
budget?
a. newsletter
b. income taxes
c. utilities
d. maintenance - ✔✔A