Florida Community Association Manager Practice Exam

What powers are granted to a community association organized as a corporation?

1. Create new governance policies

2. Budget for maintenance and collect necessary funds

3. Conduct regular audits of financial records

4. Enforce state laws independently

The correct answer is: Budget for maintenance and collect necessary funds

Community associations organized as corporations are typically granted a range of powers essential for managing the operations and maintenance of the community. The ability to budget for maintenance and collect necessary funds is crucial for the financial health of the association. This authority enables the association to plan for the maintenance of common areas, uphold property values, and ensure that necessary services and upkeep are conducted consistently. By budgeting, the association can allocate resources effectively to cover expenses such as landscaping, managing shared facilities, and implementing community improvements. Collecting funds through assessments or dues allows the association to maintain sufficient cash flow to meet these obligations. This financial capability is a fundamental aspect of the association's role in ensuring the community functions smoothly and remains well-maintained. While the other options may represent activities that community associations could engage in, they do not encompass the core powers specifically granted to corporations within the context of managing a community. The creation of new governance policies, conducting audits, and enforcing state laws involve additional responsibilities that may require specific processes, permissions, or oversight procedures, which do not reflect the primary operational powers of the corporation itself.