Answers to the Quiz and Announcement of Experts

August 19, 2011

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
The fastest submittal with the highest score and the winner of the grand prize $25 Amazon gift card is Michael Johnson (you should receive the gift card emailed to you shortly, contact me if you don’t).

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.

  •  True
  •   √ 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:

  •  annually.
  •  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. 
  •  Never.

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!

Curtis G. Kimble

1 Comment | New Condo Laws, New HOA Laws, New Non-Condo HOA Laws | Tagged: , , | Permalink
Posted by Curtis G. Kimble

Test Your Knowledge of the New Utah HOA Laws (for a Prize!)

August 17, 2011

2011 was a significant year for HOAs in Utah and the laws that govern them.  Many new laws and changes were enacted.  How does your knowledge of these changes stack up?  Take this short quiz and find out!  (Note that the quiz is best taken and submitted on our blog itself, for those that receive this post by email).

A $25 Amazon gift card will be awarded to the person scoring the highest and submitting it the quickest after this post is published.  In a few days, I’ll post the answers, as well as the names of those that scored the highest so they can brag about their expertise to other board members, homeowners, or clients.  To submit your answers, fill in your name, email and association or management company and hit submit below.

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.

3. Every HOA is now required by law to register both as an HOA and as a nonprofit corporation.

 True

 False

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:

 annually.

 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.

 Never.

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.

Update: The quiz is closed, but check out the answers to the quiz by clicking here.   Thanks for playing!

Curtis G. Kimble

5 Comments | New Condo Laws, New HOA Laws, New Non-Condo HOA Laws | Tagged: , , | Permalink
Posted by Curtis G. Kimble