Beginner's Flashcards

A community association manager is preparing a reserve study. What is the primary goal of this document?

Answer: To estimate the remaining useful life and replacement cost of major components

A reserve study analyzes major common area components, their condition, expected lifespan, and projected replacement costs to guide long-term financial planning.

Which of the following is typically a responsibility of the homeowner, NOT the HOA, in a planned unit development (PUD)?

Answer: Maintaining the exterior of their individual lot and home

In a PUD, individual homeowners typically own their lot and home outright and are responsible for their own property maintenance, unlike common areas managed by the HOA.

What is the purpose of providing notice before an HOA board meeting?

Answer: To ensure homeowners have adequate opportunity to attend and participate

Advance notice is a due process requirement that allows members to exercise their right to attend, observe, and sometimes participate in board meetings.

When must an HOA hold an open meeting rather than an executive session?

Answer: When discussing the general operating budget

General business matters like budget discussions must be conducted in open meetings, while sensitive topics like litigation, personnel, and disciplinary matters may be handled in executive session.

A homeowner installs a satellite dish on their balcony without HOA approval. Under FCC rules, the HOA's options are:

Answer: Enforce reasonable restrictions that do not prohibit reception or unreasonably increase cost or delay installation

The FCC's OTARD rule allows homeowners to install satellite dishes but permits associations to enforce restrictions that are reasonable and do not unreasonably impair reception.

What is the primary advantage of hiring a licensed community association manager?

Answer: They bring professional expertise in operations, finance, and legal compliance to protect the association

A licensed CAM provides specialized knowledge in areas like financial management, maintenance coordination, and regulatory compliance, reducing risk for the association.

Which document in the hierarchy of governing documents typically takes precedence when there is a conflict?

Answer: Declaration (CC&Rs)

The Declaration of Covenants, Conditions, and Restrictions (CC&Rs) is the highest-ranking governing document and supersedes bylaws, rules, and board resolutions in case of conflict.