Application for Occupancy Document - Rent or Sale (FL HOA)

A few questions to learn facts and laws governing a Florida HOA's sreening process for new tenants or owners so we minimize the risk of discrimination or credit related lawsuits.

1) Who should review the rent or sale applications received? - Must it always be a board member or should it be done by a non-board member or committee of volunteers?

2) Does the specific name of the company performing the background or credit check need to be disclosed on application?
Or
Is a generic statement adequate which states "I/we authorize ABC HOA, its associates and agents to conduct criminal and credit check"?

3) Are there federal or State (Florida) disclosures that must be included on the application given to prospective new owners or tenants? We are a Florida HOA and use the same form for both prospective tenants and owner.

4) What questions are illegal to ask on an application other than those seeking to know an applicant's protected class?

5) Since a renter does not pay HOA fees, is it illegal for HOA's to obtain credit reports?

Thank you, please provide specific law referance whenever possible.

Kim, here are a couple of answers.

‘1. Who should review the rent or sale applications received? - Must it always be a board member or should it be done by a non-board member or committee of volunteers? ‘

Yes, it could be the BOD or a committee the BOD appoints. Or, it could be a real estate agent, etc.

2. Does the specific name of the company performing the background or credit check need to be disclosed on application?

ANSWER: First, you must understand the differences between various background checks and credit checks and why they are performed. Also, you must realize that the Association has NO authority to disapprove of any sale or lease/rent. (a sex offender being an exception). It is the owner’s responsibility to run credit checks if the property is to be rented/leased unless the lessee pays assessments. Are you talking about ‘rent’ or ‘lease’?

Or
Is a generic statement adequate which states "I/we authorize ABC HOA, its associates and agents to conduct criminal and credit check"?

ANSWER: I do not know exactly what you mean. If you want to perform background checks on anyone, you need that person's authorization to begin with. And, what exactly do you think you are going to do with the results?

3) Are there federal or State (Florida) disclosures that must be included on the application given to prospective new owners or tenants? We are a Florida HOA and use the same form for both prospective tenants and owner. '

ANSWER: There are disclosures the buyer must sign at the time of the settlement. (See Chapter 720). Do not know of any for tenants, unless you are talking about the HOA docs. Any person who buys or leases a property should sign that have read and understand -to their best ability -the association docs.

4) What questions are illegal to ask on an application other than those seeking to know an applicant's protected class? '

ANSWER: WHOA!. What do you think you want to know and why?

5) Since a renter does not pay HOA fees, is it illegal for HOA's to obtain credit reports?

ANSWER: See question 2.

FLORIDA specific knowlege sought since HOA approval must be obtained in advance, otherwise closing cannot occur and occupancy delayed.

Are there required Federal disclosures that SHOULD be included on applications.

Can the request for a copy of drivers licenses be misinterpreted as seeking to know the color of one's skin?

May anyone cover up the picture on a license when submitting a copy of a driver license with the application? All that is needed for background checks is the drivers license number.

Are committee meetings to review applicants subject to advance public notice and open to members in accordance to FS 720?

Should there be separate forms for buyers and sellers since an HOA cannot deny a tenant from occupying home due to bad credit.

Kim,

In the note to Melissa I explained what the Certificate of Approval means.It should be explained in your covenants under ‘Conveyances’ and or Rentals. Our covenants do not permit us to run any background checks.

If your docs allow for background check AND the person agrees to it than you can request a driver’s license. Why should that have to do anything race or discrimination issues?

All you get is a limited background check for Florida state only. And, if you find something you do not like and disapprove of the sale do make sure the Association is ready to buy the unit!

‘Are committee meetings to review applicants subject to advance public notice and open to members in accordance to FS 720? ‘

NO. Any personal information you may obtain as a result of the ‘background’ or credit check cannot be openly discussed or be available to the association for inspection (See Chapter 720)

‘Should there be separate forms for buyers and sellers since an HOA cannot deny a tenant from occupying home due to bad credit.’

That is up to you.