CMCA Governance and Legal Issues 4

Question 1

What is 'alternative dispute resolution' (ADR) and why might a board prefer it over litigation?

Accepted Answer

Processes like mediation or arbitration that resolve disputes without going to court

Answer

ADR—including mediation and arbitration—resolves disputes faster and less expensively than litigation while preserving community relationships.

Question 2

When providing notice for an annual meeting of members, the notice period required by most state laws and governing documents is typically:

Accepted Answer

At least 10 to 30 days in advance

Answer

Most governing documents and state statutes require advance written notice of member meetings—commonly between 10 and 30 days—to give owners adequate time to prepare.

Question 3

A board adopts a new rule prohibiting political signs on balconies. An owner claims this violates their First Amendment rights. In a PRIVATE community association, this argument is:

Accepted Answer

Generally unsuccessful because the First Amendment restricts government, not private entities

Answer

The First Amendment restricts government action, not private associations; however, some states have enacted specific laws protecting political sign display in HOAs.

Question 4

An association's board wants to amend the CC&Rs. This typically requires:

Accepted Answer

A supermajority vote of the membership (commonly 67%–75%)

Answer

Amending the CC&Rs usually requires a higher threshold—often two-thirds or three-quarters of all members—because it changes the fundamental property rights of owners.

Question 5

The 'open meeting' requirement in many states means that:

Accepted Answer

Board meetings must be held in locations accessible to all owners, with homeowners allowed to observe

Answer

Open meeting laws generally require board meetings to be accessible to owners as observers, though the board may hold certain sensitive matters in executive session.

CMCA - Certified Manager of Community Associations Practice Test

CMCA - Certified Manager of Community Associations Practice Test

CMCA Governance and Legal Issues 4