CMCA Property Maintenance and Operations 3 — Questions and Answers
Question 1: A condominium association discovers asbestos-containing materials during a renovation project. What is the required course of action under federal law?
- Encapsulate the materials and continue work immediately
- Halt work and engage a licensed asbestos abatement contractor (Correct answer)
- Remove the materials using regular maintenance staff
- Disclose to residents only after the project is complete
Correct answer: Halt work and engage a licensed asbestos abatement contractor
Federal EPA and OSHA regulations require stopping work and hiring licensed abatement professionals when asbestos-containing materials are disturbed.
Question 2: Which type of maintenance contract gives a community association the MOST predictable annual cost for elevator service?
- Time-and-materials contract
- Full-service (comprehensive) maintenance contract (Correct answer)
- Per-call service agreement
- Warranty-only service plan
Correct answer: Full-service (comprehensive) maintenance contract
A full-service or comprehensive contract covers all parts and labor for a fixed annual fee, providing the most budget predictability.
Question 3: A manager is reviewing a swimming pool service contract. Which of the following is MOST important to verify?
- That the vendor offers the lowest price in the market
- That the vendor holds proper licensing and liability insurance (Correct answer)
- That the vendor has been in business for at least 10 years
- That the vendor uses only organic chemicals
Correct answer: That the vendor holds proper licensing and liability insurance
Proper licensing ensures compliance with health codes, and adequate liability insurance protects the association from claims arising from pool service.
Question 4: An association's aging irrigation system is causing significant water waste. Upgrading to a smart irrigation controller would BEST address which operational goal?
- Increasing property values through landscaping aesthetics only
- Reducing water consumption and utility costs through automated scheduling (Correct answer)
- Complying with elevator inspection requirements
- Meeting reserve study replacement timelines
Correct answer: Reducing water consumption and utility costs through automated scheduling
Smart irrigation controllers adjust watering schedules based on weather data, directly reducing water waste and lowering utility expenses.
Question 5: When a major plumbing repair is needed and the cost exceeds the board's spending authority, what should the manager do?
- Proceed with the repair and retroactively seek approval
- Call a special board meeting or obtain written approval per governing documents (Correct answer)
- Delay the repair until the next scheduled board meeting regardless of urgency
- Ask the vendor to start work and invoice later without board involvement
Correct answer: Call a special board meeting or obtain written approval per governing documents
Expenditures exceeding the board's spending threshold require proper authorization; a special meeting or written consent satisfies this requirement while addressing urgency.
Question 6: A property manager wants to track the history of repairs to common area equipment. The BEST tool for this purpose is:
- A verbal agreement with the maintenance technician
- A maintenance log or work order management system (Correct answer)
- The annual operating budget spreadsheet
- The reserve fund balance statement
Correct answer: A maintenance log or work order management system
A maintenance log or work order system creates a documented history that supports warranty claims, insurance documentation, and future planning.
Question 7: Which of the following BEST describes the difference between a capital improvement and a repair in community association accounting?
- A repair increases the useful life or value of a component; a capital improvement restores it to original condition
- A capital improvement adds new value or significantly extends component life; a repair restores existing function (Correct answer)
- Capital improvements are funded from operating funds; repairs from reserves
- There is no meaningful accounting distinction between the two
Correct answer: A capital improvement adds new value or significantly extends component life; a repair restores existing function
Capital improvements add new value or substantially extend useful life and are typically reserve-funded, while repairs restore existing functionality and are expensed operationally.
A condominium association discovers asbestos-containing materials during a renovation project.
What is the required course of action under federal law?