CMCA - Certified Manager of Community Associations Assessments and Collections Questions and Answers

Question 1

A homeowner is 90 days delinquent on their regular assessments.
The association's collection policy authorizes the filing of a lien at this stage.
What is the primary legal effect of the association filing a lien on the homeowner's property?

Accepted Answer

It secures the association's debt against the property's title, making it difficult to sell or refinance without first satisfying the debt.

Answer

It forces the immediate foreclosure and sale of the property.

Answer

It automatically garnishes the homeowner's wages to pay for the past-due assessments.

Answer

It allows the association to immediately shut off utility services to the unit.

Question 2

Under which of the following circumstances would a board most likely need to levy a special assessment?

Accepted Answer

To pay for a major, unbudgeted repair to the main sewer line that collapsed unexpectedly.

Answer

To fund the scheduled repainting of the community buildings, as detailed in the reserve study.

Answer

To cover the monthly cost of the community's landscape maintenance contract.

Answer

To pay the annual premium for the association's property insurance policy.

Question 3

A comprehensive, written collection policy is a critical governance tool for a community association. What is the PRIMARY reason for the board to formally adopt and consistently enforce such a policy?

Accepted Answer

To ensure the board fulfills its fiduciary duty to the association by establishing a timely and uniform process for collecting required funds.

Answer

To generate extra income for the association through the aggressive application of late fees, interest, and penalties.

Answer

To grant the community manager broad authority to make individual payment arrangements with delinquent homeowners.

Answer

To publicly identify homeowners who are delinquent on their payments to discourage others from falling behind.

Question 4

An association's board has grown frustrated with several severely delinquent accounts and decides to hire a third-party collection agency. This agency will now be contacting homeowners on the association's behalf. Which federal law primarily governs the actions and communications of this collection agency?

Accepted Answer

The Fair Debt Collection Practices Act (FDCPA)

Answer

The Fair Housing Act (FHA)

Answer

The Americans with Disabilities Act (ADA)

Answer

The Servicemembers Civil Relief Act (SCRA)

Question 5

A homeowner who is several months behind on assessment payments files for Chapter 7 bankruptcy. What is the immediate effect of this filing on the association's collection efforts for the past-due amounts?

Accepted Answer

An 'automatic stay' is imposed, which legally requires the association to halt all collection activities for the pre-petition debt.

Answer

The association can accelerate the collection process and proceed with foreclosure immediately.

Answer

The homeowner's debt to the association is immediately forgiven, and future assessments are also waived.

Answer

The association must contact the homeowner directly within 10 days to negotiate a settlement.

Question 6

Which of the following describes a 'specific assessment' (also known as a reimbursement assessment)?

Accepted Answer

An assessment charged to a specific owner for costs incurred by the association as a result of that owner's actions or failure to maintain their property.

Answer

An assessment levied against all owners to fund a single, large capital project not in the budget.

Answer

The regular monthly or quarterly assessment paid by all owners for general operating expenses.

Answer

An additional assessment paid only by owners who use a particular amenity, such as a golf course or marina.

A homeowner is 90 days delinquent on their regular assessments.The association's collection policy authorizes the filing of a lien at this stage.What is the primary legal effect of the association filing a lien on the homeowner's property?

A homeowner is 90 days delinquent on their regular assessments.
The association's collection policy authorizes the filing of a lien at this stage.
What is the primary legal effect of the association filing a lien on the homeowner's property?