CMCA Beginner's 4 — Questions and Answers
Question 1: A community association manager is preparing a reserve study. What is the primary goal of this document?
- To market the community to prospective buyers
- To estimate the remaining useful life and replacement cost of major components (Correct answer)
- To set the monthly assessment amount for all homeowners
- To determine which board members need to be replaced
Correct 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.
Question 2: Which of the following is typically a responsibility of the homeowner, NOT the HOA, in a planned unit development (PUD)?
- Maintaining the community pool
- Maintaining the exterior of their individual lot and home (Correct answer)
- Maintaining common area landscaping
- Managing the association's insurance policy
Correct answer: Maintaining the exterior of their individual lot and home
In a PUD, individual homeowners typically own their lot and home outright and are responsible for their own property maintenance, unlike common areas managed by the HOA.
Question 3: What is the purpose of providing notice before an HOA board meeting?
- To allow the property manager to prepare financial statements
- To ensure homeowners have adequate opportunity to attend and participate (Correct answer)
- To give board members time to coordinate their votes in advance
- To satisfy the insurance company's policy requirements
Correct answer: To ensure homeowners have adequate opportunity to attend and participate
Advance notice is a due process requirement that allows members to exercise their right to attend, observe, and sometimes participate in board meetings.
Question 4: When must an HOA hold an open meeting rather than an executive session?
- When discussing pending litigation
- When discussing the general operating budget (Correct answer)
- When considering disciplinary action against a specific homeowner
- When reviewing personnel matters
Correct answer: When discussing the general operating budget
General business matters like budget discussions must be conducted in open meetings, while sensitive topics like litigation, personnel, and disciplinary matters may be handled in executive session.
Question 5: A homeowner installs a satellite dish on their balcony without HOA approval. Under FCC rules, the HOA's options are:
- Compel immediate removal of the dish without restriction
- Enforce reasonable restrictions that do not prohibit reception or unreasonably increase cost or delay installation (Correct answer)
- Ignore the installation entirely since federal law preempts all HOA rules
- Fine the homeowner the maximum allowed amount immediately
Correct answer: Enforce reasonable restrictions that do not prohibit reception or unreasonably increase cost or delay installation
The FCC's OTARD rule allows homeowners to install satellite dishes but permits associations to enforce restrictions that are reasonable and do not unreasonably impair reception.
Question 6: What is the primary advantage of hiring a licensed community association manager?
- They can override board decisions at their discretion
- They bring professional expertise in operations, finance, and legal compliance to protect the association (Correct answer)
- They eliminate the need for an elected board of directors
- They are personally liable for all association debts
Correct answer: They bring professional expertise in operations, finance, and legal compliance to protect the association
A licensed CAM provides specialized knowledge in areas like financial management, maintenance coordination, and regulatory compliance, reducing risk for the association.
Question 7: Which document in the hierarchy of governing documents typically takes precedence when there is a conflict?
- Rules and Regulations
- Bylaws
- Declaration (CC&Rs) (Correct answer)
- Board resolutions
Correct answer: Declaration (CC&Rs)
The Declaration of Covenants, Conditions, and Restrictions (CC&Rs) is the highest-ranking governing document and supersedes bylaws, rules, and board resolutions in case of conflict.
CMCA Beginner's 4
A community association manager is preparing a reserve study.
What is the primary goal of this document?