Knowledge Flashcards

Under the Fair Housing Act, which of the following is NOT a protected class at the federal level?

Answer: Source of income

Source of income is not a federally protected class under the Fair Housing Act, though some states and localities have added it.

A condominium association's declaration is best described as which type of document?

Answer: A recorded legal instrument that creates the condominium

The declaration (or master deed) is the recorded governing document that legally creates the condominium and runs with the land.

What is the primary purpose of an operating reserve in a community association's budget?

Answer: To cover day-to-day operating expenses and cash flow needs

An operating reserve provides a cushion for unanticipated operating expenses and timing gaps in cash flow during the fiscal year.

Which document typically outlines the procedures for conducting board meetings and election of officers in a community association?

Answer: Bylaws

Bylaws govern the internal administration of the association, including meeting procedures, quorum requirements, and officer elections.

An association manager discovers that the board has been paying a vendor owned by a board member without prior disclosure. This is an example of:

Answer: A conflict of interest requiring disclosure and recusal

A board member with a financial interest in a vendor must disclose the conflict and typically recuse themselves from the vote.

Under the Americans with Disabilities Act (ADA), community associations that are purely residential are generally:

Answer: Required to comply only with Title I employment provisions if they have employees

Residential community associations are generally not subject to ADA Title III (public accommodations) but may have Title I obligations if they employ workers.

A reserve study's 'percent funded' metric indicates:

Answer: The ratio of actual reserves to the fully funded reserve balance

Percent funded compares the association's current reserve balance to what it theoretically should have if every component were funded proportionally to its age.