Characteristics of a Community Association - ANSWER-Mandatory membership
Mutually binding documents
Lien-based assessments
Purposes of a Community
... [Show More] Association - ANSWER-Business - Not for profit
Government - Runs like a mini-government
Community - Mutual reasons for buying into area
3 Basic Types of Community Associations - ANSWER-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: - ANSWER-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 - ANSWER-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 - ANSWER-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 - ANSWER-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 - ANSWER-Provide legal structure and operation of a community association.
Hierarchy of Governing Documents - ANSWER-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. - ANSWER-Declarations - Condo
CC&Rs - Planned Community
Proprietary Lease/Occupancy Agrmt - Coop
Articles of Incorporation - ANSWER-Brings corporation into existence.
Coops must incorporate because the the corporation owns all the property.
Other types of communities may incorporate.
Benefits of incorporating - ANSWER-Limit liability of individual owners.
Right granted all corporations
Easier to deal with utility companies, vendors, etc.
Bylaws - ANSWER-Formally adopted regulations for the administration and management of a community association.
- Meeting procedures including voting rights
- Board powers and duties
Board Resolutions - ANSWER-A motion that follows a set format and formally adopted by the board.
Public Offering Statement - ANSWER-Provides association information to first prospective buyers in community.
Required by state statute.
Not considered a governing document.
Types of Resolutions - ANSWER-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 - ANSWER-Must not violate constitutional rights.
Must be consistent with laws, statutes, governing docs.
Must reasonably relate to purpose of community.
Must be reasonable and fair.
Must be capable of uniform enforcement.
Must be necessary.
Resolution Format - ANSWER-Purpose
Authority
Scope & Intent
Specifications
Due Process Procedure - ANSWER-A formal process to protect the rights of all parties.
Alternative DIspute Resolution (ADR) - ANSWER-3rd party resolution used before lawsuit/court
Internal Resources for Enforcing Rules - ANSWER-Suspension of voting rights
Suspension of recreational facility usage
Fines
Eviction
Self help
External Resources for Enforcing Rules - ANSWER-Local Health Department
Local Zoning Department
Local Fire Department
Local Police Department
Local Building Department
Local Animal Shelter
Sources of Budget Requirements - ANSWER-Federal Laws
State Statutes
Local Laws
Governing Documents
Name Two Main Budget Components - ANSWER-Revenue & Expenses
Revenue - Owner assessments, Interest, late fees, fines, usage fees.
Expenses - Operating, major improvements, reserves
Budget Line Items - ANSWER-Mandatory & Discretionary
Mandatory - Community and owner needs and obligations (maintenance, utilities, repairs, taxes). [Show Less]