CMCA Governance and Legal Issues 5 — Questions and Answers
Question 1: An owner installs a satellite dish on the roof without approval. The FCC's OTARD rule (Over-the-Air Reception Devices) most likely:
- Gives the association full authority to require removal as an architectural violation
- Protects the owner's right to install a small dish in their exclusive-use area, limiting the association's ability to prohibit it (Correct answer)
- Only applies to commercial properties, not residential associations
- Requires the association to install a shared satellite system instead
Correct answer: Protects the owner's right to install a small dish in their exclusive-use area, limiting the association's ability to prohibit it
The FCC's OTARD rule restricts HOA rules that impair installation of antennas/dishes under one meter in an owner's exclusive-use area, such as a balcony or patio.
Question 2: In a community association election, a 'cumulative voting' system allows members to:
- Vote once per candidate up to the number of open seats
- Pool all their votes and cast them for one candidate (Correct answer)
- Vote by secret ballot without identification
- Delegate their vote to the property manager
Correct answer: Pool all their votes and cast them for one candidate
Cumulative voting lets each owner multiply their votes by the number of open seats and allocate all votes to a single candidate, giving minority factions more electoral power.
Question 3: A board passes a resolution at a meeting where a quorum was present, but the minutes were never approved. The resolution is:
- Invalid until the minutes are formally approved at the next meeting
- Valid and effective because the action was properly taken at a quorate meeting (Correct answer)
- Valid only if ratified by 50% of homeowners
- Automatically void after 30 days without approved minutes
Correct answer: Valid and effective because the action was properly taken at a quorate meeting
A board action validly taken at a quorate meeting is effective immediately; minutes are a record of what occurred, not a condition of the action's validity.
Question 4: The doctrine of 'promissory estoppel' could bind an association when:
- The board votes on a resolution without a quorum
- A manager makes an unauthorized promise that an owner detrimentally relies upon (Correct answer)
- An owner fails to pay assessments for more than one year
- The association's insurance lapses for 30 days
Correct answer: A manager makes an unauthorized promise that an owner detrimentally relies upon
Promissory estoppel can hold a party liable for an unauthorized promise if the other party reasonably relied on it to their detriment, even without a formal contract.
Question 5: Regarding electronic voting (e-voting) in community associations, the general rule is:
- E-voting is always permitted under federal law regardless of state law
- E-voting is only valid if explicitly authorized by the association's governing documents and/or state law (Correct answer)
- E-voting is prohibited for board elections but allowed for budget ratification
- E-voting requires a notarized digital signature to be valid
Correct answer: E-voting is only valid if explicitly authorized by the association's governing documents and/or state law
Electronic voting is permissible only where state law and/or the governing documents specifically authorize it; otherwise, traditional ballot methods are required.
Question 6: A 'statute of limitations' is relevant to community association governance because:
- It limits how many rules a board can adopt in a single year
- It sets the time period within which the association or an owner must file a legal claim (Correct answer)
- It defines the maximum term length for board members under state law
- It restricts how long an association can retain financial records
Correct answer: It sets the time period within which the association or an owner must file a legal claim
Statutes of limitations establish deadlines for filing lawsuits; missing these deadlines can permanently bar the association or a member from pursuing a legal claim.
Question 7: Which of the following best describes an association's 'fiduciary duty' owed by board members to the membership?
- An obligation to maximize the resale value of every unit in the community
- A duty of care and loyalty requiring board members to act in the best interest of the association as a whole (Correct answer)
- A requirement to personally guarantee association debts and contracts
- An obligation to consult every homeowner before making any financial decision
Correct answer: A duty of care and loyalty requiring board members to act in the best interest of the association as a whole
Fiduciary duty requires board members to act loyally and with reasonable care for the benefit of the association and its members, placing community interests above personal interests.
CMCA Governance and Legal Issues 5
An owner installs a satellite dish on the roof without approval.
The FCC's OTARD rule (Over-the-Air Reception Devices) most likely: