CMCA Cheat Sheet 2026

The 30 highest-yield CMCA facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. In most U.S. states, a community association that directly employs staff is required to carry which insurance coverage to protect employees injured on the job? → Workers' compensation insurance
2. What is the purpose of an annual community survey sent to homeowners? → To gather homeowner feedback on services, priorities, and satisfaction to inform planning
3. The board wants to change the time of the annual meeting from 7 PM to 10 AM. Which governance step is required before implementing this change? → A board resolution alone is sufficient if the bylaws do not specify the time
4. A fidelity bond (employee dishonesty coverage) in a community association context primarily protects against: → Theft or fraud by employees or board members who handle association funds
5. As part of HR management, discipline might include: → Counseling the employee
6. Which payment bond or surety instrument protects an association if a contractor fails to complete a project as agreed? → Performance bond
7. A reserve study conducted by an outside professional that includes a site visit and component analysis is classified as a: → Level I Full update with site visit
8. A CPA's review of financial statements, compared with an audit, provides: → Limited assurance based mainly on inquiry and analytical procedures
9. An association that consistently underfunds its reserves risks which primary consequence? → Lower property values due to deferred maintenance and potential special assessments
10. Which financial statement best shows an association's reserve fund balance at a specific point in time? → Balance sheet or statement of financial position
11. Which contract clause protects a community association if a vendor's employee is injured on the property during work? → Indemnification and hold harmless clause
12. Under the cash flow method of funding reserves, contributions are set so that the reserve balance: → Stays positive in every year of the projection period
13. A manager wants to take on a new association client but lacks experience with that community's large high-rise mechanical systems. What is the ethical approach? → Disclose the gap and get the needed training, support, or qualified specialists
14. Which type of insurance protects the association against theft of funds by employees, board members, or the management company? → Fidelity/crime insurance
15. What is the main purpose of a request for proposal (RFP) rather than a simple bid request? → To evaluate qualifications, approach, and price for complex services
16. A homeowner submits a written complaint about a neighbor's violation. The board's first step in the enforcement process should be to: → Conduct an independent investigation to verify the violation
17. Why do many associations use a lockbox for assessment payments? → It separates receipt of payments from onsite staff and speeds deposits
18. What does 'adequate reserves' mean in the context of community association management? → Having sufficient funds set aside to repair or replace common elements as they wear out
19. What is the typical reason an association collects a Form W-9 from a vendor? → To obtain taxpayer identification for year-end Form 1099 reporting
20. Which type of liability coverage protects a community association board member sued for making an honest mistake in their governance decisions? → Directors and Officers (D&O) liability
21. A homeowner claims a fence they installed does not violate the CC&Rs because the rules only prohibit 'wooden' fences and theirs is vinyl. This is an example of: → Strict constructionism that may or may not reflect the intent of the document
22. A community manager discovers a conflict between the association's rules and regulations and its bylaws. Which document generally controls? → Bylaws
23. An association manager notices that a homeowner has installed a satellite dish on the exterior of their unit. The manager should: → Review the CC&Rs and applicable federal OTARD rules before taking any enforcement action
24. A homeowner submits a formal written complaint about a neighbor's noise violations. What is the best first step for the community manager? → Acknowledge receipt of the complaint in writing and begin an investigation
25. What is the primary purpose of an architectural review committee (ARC) in a community association? → To maintain the appearance and integrity of the community
26. Which accounting method records income when earned and expenses when incurred, regardless of when cash is received or paid? → Accrual basis accounting
27. A community association's fidelity or crime insurance policy is specifically designed to cover: → Employee theft or dishonest acts that result in financial loss to the association
28. A contractor asks for a large upfront payment before starting work. What is the most prudent response? → Negotiate a payment schedule tied to milestones, with limited deposit
29. What is the primary purpose of a reserve study in property maintenance planning? → To estimate future repair and replacement costs of major components
30. Which of the following is typically funded from an association's operating budget rather than the reserve fund? → Annual landscape maintenance contract.