CERTIFIED MANAGER OF COMMUNITY ASSOCIATIONS
CMCA ACTUAL EXAM LATEST 2024/2025 QUESTIONS AND
VERIFIED CORRECT ANSWERS ALREADY GRADED A++
Resolution - ANSWER Is a motion that follows a set format and is formally
adopted by the board of directors.
Community Association - ANSWER Is a legal entity in which the owners
enjoy the protection, enhancement, maintenance and preservation of their
homes and property.
Characteristics of a Community Association - ANSWER Mandatory
membership, mutually binding documents and lien-based assessments.
Lien - ANSWER Is a legal claim by one party (community association) on
the property of another (delinquent owner) to obtain the payment of a debt
or the satisfaction of an obligation.
Types of Community Associations - ANSWER Planned Community,
Condominium and Cooperative.
Proprietary Lease or Occupancy Agreement - ANSWER Defines the
member or stockholder's rights and obligations in relation to the living unit.
Master or Umbrella Associations - ANSWER A master or umbrella
association consists of more than one residential community association.
Mixed-use Developments - ANSWER A mixed-use development usually
consists of a mixture of residential and commercial and/or industrial uses.
"55 and Older" Communities - ANSWER Must have one person who is 55
years of age or older living in at least 80% of its occupied units.
Legal Obligations for a Community Association - ANSWER Federal, state,
and local statues, regulations, and case law; Governing Documents;
Lender Requirements (FHA, Fannie Mae, Freddie Mac); Standards set by
professional bodies (AICPA).
,General State Statutes - ANSWER Applies to all types of associations,
including community associations (for example, regular corporate or not-
for-profit corporate statutes).
Specific State Statutes - ANSWER Applies to only one of the types of
community associations, takes precedence over any general statute and
takes precedence over the association's governing documents (for
example, condominium act, planned community act).
Uniform State Statutes - ANSWER National Conference of Commissioners
on Uniform State Laws draft generic, content-specific wording for topical
issues to encourage uniformity among the states.
Purpose of Governing Documents - ANSWER To provide for the legal
structure and operation of a community association.
Governing Documents - ANSWER Define the rights and obligations of both
the community association and its owners; create a binding relationship
between each owner and the community association; establish the
mechanisms for governing and funding the community association's
operations; set forth rules and standards.
General Hierarchy of Authority of Governing Documents - ANSWER
Recorded map, plat, or plan; Declaration, CC&Rs, master deed; Proprietary
lease or occupancy agreement; Articles of Incorporation; Bylaws; Board
Resolutions (cannot conflict with documents above it in the hierarchy).
The Articles of Incorporation - ANSWER Bring the corporation into
existence; define its basic purposes and powers; indicate whether stock will
be issued; indicate the number of board members and identify the initial
board.
Benefits of incorporating - ANSWER Limit liability of individual owners; right
granted all corporations; easier to deal with utility companies, vendors, etc;
grants the board of directors the same rights as all board members of
incorporated entities under state statutes.
Bylaws - ANSWER Formal procedures for the administration and
management of a community association (for example, meeting procedures
,- including voting rights, board powers and duties, indemnification of
officers and directors).
Public Offering Statement - ANSWER Provides association information to
first prospective buyers in a new community; required by state statute; not
considered a governing document.
Rule, also called a rule or regulation - ANSWER Is a specific statement of
required behavior or action, a violation of which carries a penalty
(sometimes called a sanction).
Architectural Guideline - ANSWER Is a rule that applies to the appearance
of an owner's lot of the exterior of his or her unit or improvements.
Resolution Format - ANSWER Purpose, Authority, Scope and Intent, and
Specifications.
Due Process Procedure - ANSWER A formal process to protect the rights
of all parties.
Alternative Dispute Resolution - ANSWER It involves submitting a dispute
to a trained, uninvolved third party for assistance with solving a problem.
Arbitration - ANSWER Is a process in which a third party - called the
arbitrator - renders a decision as to the respective liabilities of all parties.
Mediation - ANSWER Is a non-adversarial process that is intended to bring
about a "win-win" resolution. In this process a neutral third party - called a
mediator - attempts to guide the parties into reaching a resolution or
settlement that is favorable to everyone.
Internal Resources for Enforcement - ANSWER Suspend voting rights,
suspend use of amenities, fines, eviction, and self-help corrections.
External Resources for Enforcement - ANSWER Police/fire, animal control,
zoning, building/planning, and health.
Cease and Desist - ANSWER Specific description of the alleged violation,
the action required to resolve the alleged violation, a specific time within
which the alleged violation must be corrected, and the penalty (sanction)
, which may be imposed after a hearing if the alleged violation is not
corrected within the stated time (specified by state statute, your governing
documents or board resolution).
Hearing Notice - ANSWER A written notice to an alleged violator that a
hearing will be held to consider his or her alleged violation.
Hearing - ANSWER This is a fact-finding session. It is an inquiry into the
allegations and an investigation of them.
Default hearing - ANSWER A default hearing is one held when the alleged
violator fails to appear.
Appeal - ANSWER An appeal is a request for a review of a case by a
higher authority - if permitted by the governing documents, resolution or
statute.
Eviction - ANSWER The process of physically removing a tenant (not an
owner) from a property. This process involves a local court system and the
use of an attorney. Do not consider this alternative without consulting your
community's attorney. Many jurisdictions do not permit eviction as a
remedy for violations.
Self Help - ANSWER The community association takes action to correct
the violation itself. Do not consider this potentially dangerous alternative
without consulting your community's attorney.
Budget - ANSWER An annual financial plan for an organization - in this
case, a community association. It provides an estimate of a community's
revenue and expenses for a specific period of time. it is the first step to
managing your community's financial operations.
Sources of Budget Requirements - ANSWER Governing documents, local
laws and regulations, federal laws and regulations, and state statutes,
regulations and case law.
Budget Components - ANSWER Revenue and Expenses
