CMCA Governance and Legal Issues 3 — Questions and Answers
Question 1: A board member learns that a contract being voted on would benefit their own business. What should the board member do?
- Vote in favor to ensure the best service for the community
- Abstain only if another board member raises an objection
- Disclose the conflict of interest and recuse themselves from the vote (Correct answer)
- Resign from the board immediately
Correct answer: Disclose the conflict of interest and recuse themselves from the vote
Board members with a conflict of interest must disclose it and typically recuse themselves from voting to uphold their fiduciary duty and avoid self-dealing.
Question 2: Under Roberts Rules of Order, a 'quorum' at a board meeting refers to:
- A unanimous agreement among all board members present
- The minimum number of members required to conduct official business (Correct answer)
- A two-thirds majority vote on major expenditures
- The presence of the association's legal counsel
Correct answer: The minimum number of members required to conduct official business
A quorum is the minimum number of board members (or members at an owner meeting) required to be present for the body to legally transact business.
Question 3: Which document in the hierarchy of governing documents generally takes precedence over all others in a community association?
- Rules and regulations
- Bylaws
- Declaration (CC&Rs) (Correct answer)
- Board resolutions
Correct answer: Declaration (CC&Rs)
The Declaration (CC&Rs), as the recorded foundational document, sits at the top of the governing document hierarchy and supersedes bylaws, rules, and board resolutions.
Question 4: A unit owner with a disability requests a reserved parking space closer to their unit as a reasonable accommodation. The board should:
- Deny the request because parking rules apply equally to all owners
- Grant the accommodation unless it causes an undue hardship to the association (Correct answer)
- Require the owner to obtain a doctor's note and then vote to amend the parking rules
- Refer the owner to the local government for disability parking permits only
Correct answer: Grant the accommodation unless it causes an undue hardship to the association
The Fair Housing Act requires associations to grant reasonable accommodations for persons with disabilities unless doing so creates an undue hardship.
Question 5: An owner has not paid assessments for 90 days. What is typically the association's NEXT formal step before recording a lien?
- Filing a lawsuit in small claims court
- Sending written notice of delinquency per the collections policy (Correct answer)
- Suspending all the owner's membership privileges immediately
- Contacting the owner's mortgage lender
Correct answer: Sending written notice of delinquency per the collections policy
Most state laws and collection policies require the association to provide written notice of the delinquency before recording a lien or pursuing further legal action.
Question 6: Which type of meeting allows association members to remove a board member from office before their term expires?
- A regular board meeting with a quorum present
- A special meeting of the members called for that specific purpose (Correct answer)
- An executive session of the board
- An informal town hall meeting
Correct answer: A special meeting of the members called for that specific purpose
Removal of a board member before the end of their term typically requires a special meeting of the members with proper notice and a sufficient vote threshold.
Question 7: The Americans with Disabilities Act (ADA) primarily applies to community associations in which context?
- All residential HOA common areas without exception
- Only condominiums with more than 100 units
- Common areas that function as places of public accommodation, such as commercial spaces (Correct answer)
- Every swimming pool and fitness facility in any HOA
Correct answer: Common areas that function as places of public accommodation, such as commercial spaces
The ADA generally applies to places of public accommodation and commercial facilities; most private residential HOA amenities are not covered, though some state laws extend similar protections.
CMCA Governance and Legal Issues 3
A board member learns that a contract being voted on would benefit their own business.
What should the board member do?