chapter 16

Which of the following best describes an unbudgeted expense?

• Any overrun of 10% or more in an operating budget category

• An expense not included in the current year budget

• A capital expense included in the reserve budget

• Any item for which the association plans to borrow funds

What is a special assessment?

• A charge to members of a specific amount, in addition to the periodic assessment, for a non-budgeted, typically unanticipated, repair, replacement, or other expense

• An add-on to a periodic assessment, for a planned repair or expense

• A charge to members for repairs to their unit or parcel made by the association

• A claim a member makes on the association for damage to their unit or parcel

In an HOA, prior to turnover, a developer-controlled board may not levy a special assessment unless:

• A majority of non-developer-controlled parcels, at a duly called and quorumed meeting, vote in favor of the special assessment.

• A majority of eligible TVI, excluding developer-controlled parcels, at a duly called and quorumed meeting, vote in favor of the special assessment.

• A supermajority of non-developer-controlled parcels, at a duly called and quorumed meeting, vote in favor of the special assessment.

• The board votes unanimously in favor of the special assessment.

As a fiduciary, a director or officer has all of the following duties, EXCEPT:

• Duty of care

• Duty to act in good faith

• Duty of loyalty

• Duty of guarantee

What is the common surplus?

• It is the excess of all revenue retained by the association after the deduction of all expenses.

• It is the excess of revenue over expense in the profit making section of the budget.

• It is the sale of association property upon the inclusion of the surplus from a special assessment, except in an HOA.

• It may not include the surplus from a special assessment, except in an HOA.

Which of the following is NOT an option an HOA may exercise relating to a special assessment surplus?

• It may be transferred to one or more reserve accounts.

• It may be applied as a credit to a future special assessment.

• It may be refunded to the members.

• It may be used to offset future expenses in the operating budget.

Which of the following is a statutory limitation on the use of a debit card?

• Only directors or officers may use a debit card in the name of the association, and only for association expenses.

• A debit card must be issued in the name of, and billed directly to, the association, and used solely for office and maintenance supplies under $100.

• In a condominium, directors, officers, employees, and agents may not use a debit card issued in the name of the association for the payment of association expenses.

• In any community association, a debit card may be used solely for expenses directly related to social club activities permitted in the declaration or bylaws.

What is the notice requirement for an HOA to file a lien?

• 30 days prior to filing the lien

• 20 business days prior to filing the lien

• 15 business days before filing the lien

• 45 days before filing the lien

What is the condominium association’s annual report due to the DBPR?

• An annual report required to be delivered to the DBPR by every condominium association containing the names of every financial institution in which it has savings accounts

• An annual report required to be delivered to the DBPR by every cooperative association containing the names of every financial institution in which it has savings accounts

• An annual report required to be delivered to the secretary of state, division of corporations, by every community association containing the names of all directors, officers, and agents

• An annual report required to be delivered to the DBPR by every condominium association containing the names of every financial institution in which it has any financial account

What is the period of time that a cooperative may suspend the voting rights and rights to use the common elements of members who have been delinquent in any monetary amount?

• Over 90 days

• 90 days or more

• 30 days or more

• 60 days or more