Criminal Background Checks for Board Members

Started by CeliaT1 • 13 replies • 5704 views

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CeliaT1 (Georgia)
Posts: 2

Posted:

The homeowners have recently taken over control of our HOA from the developer. It appears that the developer and/or Prop. Mgmt. group has been operating the budget in the negative each year since the inception of the subdivision and we will run out of money by the end of 2012. The newly elected board not only has agreed to raise the assessments (not a large amount) to help with the budget shortfall, but to no longer emply a Prop. Mgmt. group to manage the financial aspects of the HOA. This has unsettled a particular homeowner who is demanding that the entire board undergo a criminal background check. While none of the elected board members is against having this done, 1)the majority of the community doesn't think it is necessary, 2)they've all had background checks performed through their current employers, 3) it would be at the expense of the HOA budget, 4) it isn't stated as a requirement for Board membership in the Bylaws and Covenants of the HOA, and 5)the "angry" homeowner demand is rooted in his inability to be elected to a Board position.

Would the "right" thing to do be to simply amend the HOA documents to allow for this check to be performed in the future? Comments? Suggestions?

BradP (Kansas)
Posts: 2,640

Posted:

Celia:

what is exactly is this person looking for in a background check and what would disqualify someone from being able to be on the board? I understand trepidation after recently discovering fraud in our HOA. But a system of checks and balances accomplishes the same thing. I think they are unnecessary and a waste of HOA money.

But, if you do decide to go through with them you better have some pretty defined guidelines on what you are looking for and what disqualifies someone and understand that it isn't cut and dried.

PetunkaM (Florida)
Posts: 1,009

Posted:

Would the "right" thing to do be to simply amend the HOA documents to allow for this check to be performed in the future? Comments? Suggestions?

Celia,

Has he justified his reason, in writing? If not, I would probably ignore it. Also, does he want Criminal History Report on state and federal level? Or, even more?

Be quite careful amending the docs performing ‘background or criminal checks’ on anybody, including potential tenants or new owners. You need to understand the state discrimination laws as well. Running the background check is one thing but using the info against a person is quite another!

PS: Florida Dept of Law Enforcement has some guidelines (see link below) for performing criminal checks. You may want to check Georgia state. Police dept. could help you out,may be?.

http://www.fdle.state.fl.us/content/getdoc/2952da22-ba08-4dfc-9e45-2d7932a803ea/Obtaining-Criminal-History-Information.aspx

FredS7 (Arizona)
Posts: 927

Posted:

Assuming you have adequately safe systems this would be quite unnecessary. However you remark that you are now self-managed- and this does put a different complexion on things. Do you have a system that requires two people to sign a check?

With a management company you can determine if they are bonded/ carry adequate insurance. When self-managed, it seems to me that a background check is still no guarantee. Also, a routine background check would discourage people from being involved- not because they are criminals, but because this is rather intrusive.

LarryB13 (Arizona)
Posts: 4,099

Posted:

If the member wants background checks what prevents him from hiring someone to do it? Let him foot the bill if he thinks it is so important.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Did anyone overlook the fact that the BOD members are homeowners? What gives anyone the right to force a background check on anyone who lives in the neighborhood? Essentially forcing background checks on board meetings is forcing checks on neighbors. Which may very well be a violation of one's personal rights.

I had to do a background check when I lived in an apartment complex. However, as an individual homeowner...that's crossing a line. It's more of a wishful thinking than reality...

Former HOA President

BradP (Kansas)
Posts: 2,640

Posted:

background checks are legal as long as the person submits to them. What you do with that information is where you get into trouble. Let's face it we all have skeletons in our closets, whether it was the drunk in public arrest you had in college or the millions of other stupid things college kids do to personal bankruptcy, etc. I fail to see the benefit a background check will do as far as an HOA board is concerned. If nothing else it gives a false sense of security. Remember, all criminals at one time or another had a clean record!

PetunkaM (Florida)
Posts: 1,009

Posted:

Gosh, I just read the 2011 Florida Condominium law:

'A person who has been convicted of any felony in this state or in a United States District or Territorial Court, or who has been convicted of any offense in another jurisdiction which would be considered a felony if committed in this state, is not eligible for board membership unless such felon’s civil rights have been restored for at least 5 years as of the date such person seeks election to the board. The validity of an action by the board is not affected if it is later determined that a board member is ineligible for board membership due to having been convicted of a felony.'

So, how would one know unless one runs the background check. This is really hard to swallow.

PetunkaM (Florida)
Posts: 1,009

Posted:

And the same applies to HOAs. Whoa.

FredS7 (Arizona)
Posts: 927

Posted:

> 2011 Florida Condominium law

That says that the person is not eligible if convicted. It does not place a burden on the HOA to do a background check, and it specifically notes that the actions of the board remain valid even if a member is found out later to have been a felon.

An HOA could ask a candidate to state that he has not been convicted before taking office.

I say again: a better protection (especially for a self-managed HOA) is to establish a policy that disbursements need to be approved by two people not one. I believe this is easy to do when you open a checking accoung. A background check is a blunt tool.

CeliaT1 (Georgia)
Posts: 2

Posted:

Thanks everyone.

Yes, we do have safeguards in place such as two signatures on all checks, plus we're making financial reports available quarterly so that residents can stay more up-to-date on what's going out vs. what's coming in. I agree that a background check doesn't really provide any assurance to the homeowners. In our situation, it would simply be a tactic to exercise control over the Board's actions by one man.

BradP (Kansas)
Posts: 2,640

Posted:

Quote:

Posted By PetunkaM on 08/26/2011 10:09 AM
Gosh, I just read the 2011 Florida Condominium law:

'A person who has been convicted of any felony in this state or in a United States District or Territorial Court, or who has been convicted of any offense in another jurisdiction which would be considered a felony if committed in this state, is not eligible for board membership unless such felon’s civil rights have been restored for at least 5 years as of the date such person seeks election to the board. The validity of an action by the board is not affected if it is later determined that a board member is ineligible for board membership due to having been convicted of a felony.'

So, how would one know unless one runs the background check. This is really hard to swallow.

Make them attest in writing that they are eligible for board membership based on this provision. If they lie, they lie.

PetunkaM (Florida)
Posts: 1,009

Posted:

we don;t have to we have fbi agents on the board.

CharlesB17
Posts: 112

Posted:

Where do you read that the same applies to HOAs?

Further more, I agree with some of the statements, let the person complaining run their own background search, you can do it on line for as little as $49.99 for an unlimited number of people in a 24 hour period. Then the person that is complaining can show just cause to have a person removed. And that would make the complainer liable and not the HOA.

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