Legal & Regulatory Compliance Flashcards

When enforcing a rule violation that may result in fines, the association should generally provide:

Answer: Notice and an opportunity for a hearing before the board or committee as required by documents or statute

Due process through notice and a chance to be heard is typically required before levying fines.

A prospective buyer is denied a purchase because of the family's children, in a community that is not a qualified senior community. This is most likely a violation of the prohibition on discrimination based on:

Answer: Familial status

The FHA prohibits discrimination against families with children under 18 unless a qualified senior-housing exemption applies.

Which of the following is the best example of a reasonable modification (as opposed to a reasonable accommodation) under the FHA?

Answer: Allowing the owner to install a grab bar in a bathroom at their own expense

A modification is a physical change to premises, while an accommodation is a change to a rule, policy, or service.

Which statement about the Americans with Disabilities Act and a residential community is generally correct?

Answer: Title III applies to public accommodations such as a clubhouse open to the public

Private residential areas fall under the FHA, but areas open to the public, such as a leasing office or rented event space, may be subject to ADA Title III.

A manager receives a litigation hold notice from association counsel. The manager should:

Answer: Preserve all potentially relevant records and suspend destruction

A litigation hold requires preservation of potentially relevant documents to avoid spoliation sanctions.

Under the Fair Credit Reporting Act, an association that denies a rental or resale application based on a consumer report must generally:

Answer: Provide an adverse action notice identifying the reporting agency

Adverse action based on a consumer report requires notice, including the agency's name and the applicant's rights.

Which is the primary legal reason associations must collect assessments uniformly and according to the governing documents?

Answer: Fiduciary duty and the enforceability of the covenants

Boards owe fiduciary duties and must apply assessments as the declaration and bylaws require to keep them enforceable.