Governance and Legal Issues Flashcards

A community association's Declaration (CC&Rs) prohibits all pets. A resident with a documented disability requests to keep an assistance animal as a reasonable accommodation. According to the Fair Housing Act, what is the association's obligation?

Answer: To grant the request, as it is a change to a rule or policy necessary for the person to have equal opportunity to use and enjoy their dwelling.

The Fair Housing Act requires housing providers, including community associations, to make reasonable accommodations in rules, policies, practices, or services when necessary to afford a person with a disability the equal opportunity to use and enjoy a dwelling. A waiver of a 'no pets' policy for an assistance animal is a common example of a reasonable accommodation. The association cannot charge a pet deposit for an assistance animal, as it is not considered a pet.

A community manager is asked by the Board of Directors to draft a complex amendment to the association's bylaws that redefines quorum and voting rights. Which of the following is the most appropriate action for the manager to take?

Answer: Advise the Board that this action constitutes the unauthorized practice of law and that legal counsel should draft the amendment.

Drafting amendments to governing documents, especially those involving legal definitions like quorum and voting rights, often requires statutory or case law analysis and can affect the legal rights of the association and its members. This falls into the category of practicing law, which a community manager is not licensed to do. The manager's proper role is to act as a liaison to and recommend the board seek guidance from the association's legal counsel.

Which of the following represents the correct hierarchy of authority for a community association's governing documents, from highest to lowest?

Answer: Recorded Plat/Map, Declaration (CC&Rs), Articles of Incorporation, Bylaws, Rules & Regulations.

The generally accepted hierarchy of authority for governing documents starts with the documents that establish the physical and legal existence of the community and progresses to the operational rules. The Recorded Plat or Map defines the property itself. The Declaration (CC&Rs) establishes the core covenants and restrictions. The Articles of Incorporation create the legal corporate entity. The Bylaws outline the governance and operational procedures of the corporation. Finally, the Rules and Regulations provide specific details for day-to-day living. All of these are subordinate to federal, state, and local laws.

During a board meeting conducted under Robert's Rules of Order, a motion is made and seconded. The board president, who is chairing the meeting, is strongly opposed to the motion. Which action is appropriate for the president to take?

Answer: State their opposition during the discussion period, but otherwise manage the debate and call for a vote impartially.

According to Robert's Rules of Order, the chair's role is to facilitate the meeting, ensure orderly debate, and remain impartial. While the chair can participate in debate (especially in smaller boards), they cannot unilaterally block a properly made and seconded motion. The core principles include allowing for discussion on one topic at a time and ensuring the majority rules through a vote.

A homeowner in a condominium association requests to install a wheelchair ramp from their ground-floor unit door to the common area sidewalk. Under the Fair Housing Act, this request is considered a:

Answer: Reasonable modification, which the resident must pay for.

A reasonable modification is a physical or structural change to the premises needed to afford a person with a disability full enjoyment of the premises. A wheelchair ramp is a classic example of a reasonable modification. Under the Fair Housing Act, the resident is typically responsible for the cost of the modification. A reasonable accommodation, in contrast, is a change to a rule, policy, or service.

Which of the following is a primary fiduciary duty of a community association's Board of Directors?

Answer: To act in the best interests of the corporation and exercise the care an ordinarily prudent person would.

The Board of Directors has a fiduciary duty to the association, which includes the duty of care and the duty of loyalty. The duty of care requires them to act in good faith, with the care an ordinarily prudent person in a like position would exercise under similar circumstances, and in a manner they reasonably believe to be in the best interests of the corporation (the 'business judgment rule'). This involves making informed decisions, particularly regarding financial stewardship and maintenance.