### What is a Common-Interest Development (CID)? - [x] A project of individually owned units with common areas and financial responsibility - [ ] A type of commercial real estate development focused on retail spaces - [ ] A single-family home with a large private backyard - [ ] A development consisting only of rental apartments > **Explanation:** A Common-Interest Development (CID) involves individually owned units that share common areas and financial responsibilities. Examples include condominiums, time shares, and planned communities. ### Which type of homes can be part of a Common-Interest Development? - [x] Condominiums - [x] Time shares - [x] Planned communities - [ ] Single-family detached homes not governed by an HOA > **Explanation:** Common-Interest Developments typically include condominiums, time shares, and planned communities where homeowners share usage and financial responsibility for common areas. Single-family detached homes without an HOA are not part of such developments. ### How do owners in a Common-Interest Development benefit from common amenities? - [ ] Only the owners of larger units can use common amenities - [ ] Owners must pay the full cost of maintaining common amenities just like homeowners with private amenities - [x] Owners share the costs, making it more affordable while having full access - [ ] Only temporary residents have access to common amenities > **Explanation:** In a Common-Interest Development, unit owners share the costs of common amenities like pools, parks, and gyms. This shared responsibility makes it more affordable than managing these amenities individually, while still providing full access. ### Who is responsible for managing the common areas in a Common-Interest Development initially? - [x] The builders during construction and initial sales - [ ] The city government - [ ] Private management companies hired by individual owners - [ ] Each unit owner independently > **Explanation:** Initially, the builders are responsible for managing the common areas in a Common-Interest Development during construction and initial sales. They establish homeowner associations (HOAs) to oversee these responsibilities. ### What happens to the homeowners' association in a Common-Interest Development after most of the units are sold? - [ ] It remains permanently under the control of the builders - [ ] It is dissolved and management duties are taken over by the city - [x] Control is passed to the resident owners - [ ] The common areas become privately owned by individual residents > **Explanation:** After a certain number of units are under owner control, governance of the homeowners' association in a Common-Interest Development passes from the builders to the resident owners. ### What is a major advantage of living in a Common-Interest Development? - [x] Access to common amenities at shared costs - [ ] Complete individual responsibility for maintenance - [ ] No homeowner association fees - [ ] Private ownership of all amenities > **Explanation:** One of the main advantages of living in a Common-Interest Development is the ability to access shared amenities like pools and parks. The costs for these amenities are shared among all owners, which reduces the financial burden on individual owners. ### What are homeowners' associations (HOAs) responsible for in a Common-Interest Development? - [x] Managing common areas and enforcing community rules - [ ] Setting property tax rates for the community - [ ] Selling additional units within the development - [ ] Providing personal services for each unit owner > **Explanation:** In Common-Interest Developments, HOAs are responsible for managing common areas and enforcing community rules. This includes maintenance of shared amenities and ensuring adherence to community guidelines. ### At what point does the control of a homeowners' association typically pass to resident owners? - [ ] When the first unit is sold - [ ] After the first year of sales - [ ] Only after legal disputes arise - [x] When a certain number of units are under owner control > **Explanation:** Control of a homeowners' association in a Common-Interest Development typically passes to resident owners once a certain number of units are under their control, ensuring the residents have a say in the management of their community. ### How is financial responsibility for common areas handled in a Common-Interest Development? - [ ] Each owner pays a flat fee regardless of the size of their unit - [ ] The local government subsidizes the costs - [x] Costs are shared by all unit owners - [ ] Individual owners are responsible for specific common areas > **Explanation:** Financial responsibility for common areas in a Common-Interest Development is shared among all unit owners. This means that the costs of maintenance and amenities are collectively borne, reducing the financial load on any single owner. ### What entity do homeowners' associations (HOAs) typically interact with during the creation of a Common-Interest Development? - [ ] Local small businesses - [ ] Environmental protection agencies - [x] Builders or developers - [ ] State educational institutions > **Explanation:** During the creation of a Common-Interest Development, homeowners' associations (HOAs) are typically established and initially managed by the builders or developers. Once development is sufficiently advanced, control is handed over to the resident owners.