Mixed Deck — All CMCA Topics Flashcards

Which governing document generally takes precedence when it conflicts with the bylaws?

Answer: Declaration (CC&Rs)

The declaration ranks above the bylaws, rules, and resolutions in the hierarchy of governing documents.

What does running with the land mean in the context of CC&Rs?

Answer: The CC&Rs bind not only current owners but also all future owners of the property

Running with the land means the CC&Rs are attached to the property itself. Every future buyer is automatically bound by them at purchase regardless of whether they agreed to them personally.

Which of the following is an example of a common area in a planned unit development?

Answer: The community swimming pool and surrounding deck

Common areas are property owned or maintained by the association for the use and benefit of all residents, such as pools, clubhouses, parks, and roads within the community.

The board performs its fiduciary duties by:

Answer: Establishing internal controls.

The board fulfills its fiduciary duties by acting in the best financial and operational interests of the association and its members. Establishing robust internal controls, such as financial policies, approval processes, and oversight mechanisms, is a critical way to meet this duty. These controls safeguard the association's assets, ensure accurate financial reporting, and prevent fraud or mismanagement, demonstrating responsible governance.

Under the federal Fair Debt Collection Practices Act, assessment collection actions may be regulated because assessments are considered:

Answer: Consumer debts incurred for personal, family, or household purposes

Courts have generally treated association assessments as consumer debts, so third-party collectors must comply with the FDCPA.

Funds held in an association's reserve account should be:

Answer: Kept in a separate, clearly designated account to prevent accidental spending on operating expenses

Reserve funds must be kept in a separate account segregated from operating funds to prevent misuse and ensure the money is available for its intended capital replacement purposes.

A board member tells the manager privately to delay processing an architectural application from an owner the board member dislikes. What is the ethical course?

Answer: Process the application under the established procedure and timeline, and raise the concern with the full board if needed

The manager takes direction from the board acting as a body and must apply procedures consistently, not follow one director's personal agenda.

A community association newsletter is BEST used to:

Answer: Build community spirit, share upcoming events, and highlight policy reminders in a friendly format

Newsletters are informal communication tools best suited for building community engagement and sharing general information, not for formal legal notices.

Which financial report compares actual income and expenses with budgeted amounts?

Answer: Budget comparison (budget vs. actual) statement

A budget-vs-actual statement shows variances so the board can spot overspending or revenue shortfalls.

In a condominium, limited common elements are best described as:

Answer: Common area elements assigned for the exclusive use of one or more but not all unit owners such as a balcony or parking space

Limited common elements are part of the common property but are designated for the exclusive use of specific units such as a balcony, patio, or assigned parking space rather than being available to all owners.

Fence posts were installed 6 years ago with a 20-year useful life, but recent repairs extended their expected life. What figure in the reserve study changes?

Answer: Remaining useful life

Repairs or conditions that extend life adjust the remaining useful life estimate for the component.

Under professional ethics standards, when is it acceptable for a CMCA to act on a matter without board direction?

Answer: Only in genuine emergencies where delay would cause immediate harm and board approval cannot be obtained in time

Independent action without board authorization is justified only in true emergencies where delay would cause imminent harm and timely board approval is impossible; all other actions require authorization.

A condominium association's budget shows a projected shortfall mid-year. What type of assessment would the board most likely levy to cover the gap?

Answer: Special assessment

A special assessment is levied for a specific, often unforeseen expense or shortfall that cannot be covered by the current operating budget without additional owner contributions.

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 governing document typically establishes the boundaries of individually owned units versus common areas in a condominium?

Answer: Declaration (CC&Rs)

The Declaration (CC&Rs) legally defines unit boundaries, common elements, and limited common elements within a condominium community.

Why should a community association conduct a formal risk assessment at least annually?

Answer: To identify new or changed exposures and ensure insurance coverage remains adequate

An annual risk assessment identifies changes in the community's operations, property values, or activities that may create new exposures or gaps in existing coverage.

A community association manager who learns of a potential environmental hazard on the property (e.g., asbestos) should first:

Answer: Immediately notify the board so it can engage qualified professionals

Environmental hazards require prompt escalation to the board so qualified licensed professionals can assess and remediate the situation.

Under the Fair Labor Standards Act (FLSA), non-exempt employees must be paid overtime at a rate of at least:

Answer: Time and a half (1.5×) for all hours over 40 in a workweek

The FLSA requires non-exempt employees to receive at least 1.5 times their regular rate of pay for all hours worked beyond 40 in a single workweek.

A manager notices that the same employee who processes vendor invoices also signs checks to pay those vendors. This is a problem because:

Answer: It eliminates the separation of duties control that would catch unauthorized or fraudulent payments

When one person controls both invoice processing and payment authorization, there is no independent check. This person could create fictitious invoices and pay them without detection.

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.