Legal & Regulatory Compliance Flashcards

Which document sits highest in the typical hierarchy of an association's governing documents, below only federal and state law?

Answer: Recorded declaration (CC&Rs)

The recorded declaration generally controls over bylaws, rules, and resolutions when they conflict.

A resident with a disability asks to keep an emotional support animal in a no-pets community. Under the Fair Housing Act, the association should first:

Answer: Treat it as a reasonable accommodation request and evaluate it through the interactive process

The FHA requires associations to consider assistance-animal requests as reasonable accommodations, regardless of pet restrictions.

Which of the following is generally NOT protected under the federal Fair Housing Act?

Answer: Source of income

Source of income is not a federally protected class, although some states and localities protect it.

The Fair Debt Collection Practices Act generally applies to a community manager when:

Answer: A third-party management company or collector collects assessments owed by owners

The FDCPA applies to third-party debt collectors, which can include management companies collecting delinquent assessments.

An owner requests to inspect association financial records. The best first step for the manager is to:

Answer: Review state statute and governing documents for the owner's inspection rights and timelines

Records access rights and deadlines vary by state, and some records such as privileged communications are protected.

Under the HUD/FCC Over-the-Air Reception Devices (OTARD) rule, an association generally may NOT:

Answer: Prohibit a small satellite dish installed within an owner's exclusive-use area

OTARD prevents restrictions that impair installation, maintenance, or use of small antennas in areas within the owner's exclusive control.

A board member votes to award a contract to a company they own without disclosing it. This is primarily a violation of:

Answer: Duty of loyalty and conflict-of-interest requirements

Undisclosed self-dealing breaches the fiduciary duty of loyalty and typically conflict-of-interest provisions.