The results are in. I purposely designed this quiz to be difficult with subtleties that almost amounted to trick questions, and sure enough, it was a difficult quiz. But, a few experts emerged from the results (if you haven’t taken the quiz yet, go here (link), and take the quiz and then come back and review the answers below).
Congratulations to the following high scorers who have proven that they are not mere layman in the HOA realm:
- Michael Johnson, FCS Community Management
- Vernon Rice, Northpoint Homeowners Association
- Harold Alston, The Cottonwoods Condominium Homes
DO NOT READ FURTHER if you haven’t taken the quiz yet!
Here are the answers (in bold):
1. Each board has to present the issue of reserve funding to the association members for discussion and a vote:
- √ every year.
- every two years.
- never because the board decides reserve funding issues.
- never because the law has reserve funding requirements.
2. A board is required to conduct or have conducted a reserve study every _____ years and review and if necessary update it every ______ year(s).
- 3 … 1
- √ 5 … 2
- 7 … 3
- It depends on the outcome of a vote of the members.
UPDATE: As of May, 2012, a board is required to conduct or have conducted a reserve study every 6 years and review and if necessary update it every 3 years
3. Every HOA is now required by law to register both as an HOA and as a nonprofit corporation.
- √ False (it is not required by law that an HOA be a nonprofit corporation)
4. For claims on the association master insurance policy associated with a particular unit or lot, the association can require that unit owner to pay the deductible if:
- the association has set aside an amount equal to the deductible.
- it is authorized by a governing document of the association.
- the owner is at fault (caused the incident or was negligent).
- √ all owners had been notified of the deductible responsibility.
5. Every HOA in the state has to update their HOA registration information with the Department of Commerce:
- within 30 days of a change in the information.
- √ within 90 days of a change in the information.
- never because only an initial one-time registration is required.
6. A board can use reserves funds in an emergency for daily maintenance expenses:
- only once in a 2 year period.
- if authorized by the association governing documents.
- √ after receiving approval from a majority of the members.
7. During any period that an HOA fails to be properly registered with the state, the HOA:
- cannot file a lien against any unit or lot.
- cannot enforce a previous lien against a unit or lot.
- can seek a judgment against an owner for past due amounts.
- √ all of the above. (The HOA can still pursue a personal judgment against a delinquent owner or past owner, even if it can’t enforce a lien. Remember, assessments are both a personal obligation of an owner (meaning the HOA can pursue the personal assets of the owner for payment) and a lien on the property (meaning the HOA can pursue the property itself, by foreclosure or by effectively preventing its sale because of a recorded notice of lien)).
Thanks for playing!