Can the Association check credit scores for prospective owners and tenants?

It is not surprising in today's economy that more and more boards are asking if they can check credit scores to determine whether or not a potential purchaser or potential renter in their community has the financial resources to meet their financial obligations to the community after moving in.

As with any other restriction or board action, the first step is to determine the source of such authority and whether it is statutory or documentary (Florida Statutes or Condo Docs). The Florida Statutes do not allow the Board the right to check credit scores for potential purchasers and renters. We must then look to an association's governing documents to determine if such authority is allowed to the board.

Let's take the best case scenario (for a board wishing to do this) that the association's original recorded governing documents contained the right to check credit scores. The board in this situation would still need to obtain the consent of the potential purchaser or renter to check his or her credit, since any time a credit inquiry is made, the persons score is affected slightly. A board that makes such an inquiry without first advising the subject that such action will be taken and getting consent to do so exposes itself to great liability. Most boards and management companies choose to include a form along with the screening application that must be signed by the applicant acknowledging and consenting to a credit check.

Even if all of the above is properly handled a board still has a complicated issue with which to contend when the credit report comes back negative. First, is a low score really indicative of the person's current financial situation or is it the result of a life event such as a job loss, divorce, or illness? Moreover, some people fail to build up high credit scores because they don't like credit! These are the folks who don't have 10 credit cards, don't demand high limits on the ones they have and pay for most things in cash. This might actually be a desirable resident!

If the low credit score is truly indicative of a person who will be unlikely to meet their financial obligations after moving in, it is essential to speak with your association attorney to ensure that the association's governing documents allow you to reject an application based solely on such information found on a credit check. To add further, even if the governing documents allow for such action by the Board it does not always mean that a court will uphold it in the event of a challenge. A knowledgeable community association attorney can walk you through this and be sure to limit the Associations and Board Members liability.

Now, if the Board is considering an application for purchase, you should take into consideration that the lending institution (mortgage company or bank) will more than likely have already done a very thorough credit history check on the prospect, probably even more thorough than any the Association will have done.

One last thing you should think about when pondering whether or not it is necessary or even desirable to check credit scores for potential new association residents: how many of your long-term residents' would be disapproved if you checked their credit scores today!?


Excerpts taken from Donna Berger, Esq.

2010 Census: Distinguishing Census Workers from Con Artists

The first phase of the 2010 U.S. Census is under way, with workers verifying the addresses of households across the country. Eventually, more than 140,000 U.S. Census workers will count every person in the United States and will gather information about every person living at each address including name, age, gender, race, and other relevant data.

The big question from many of you is -- how do you tell the difference between a U.S. Census worker and a con artist? So below are some recommendations from the Better Business Bureau and law enforcement across the country.

If a U.S. Census worker knocks on your door, they will have a badge, a handheld device, a Census Bureau canvas bag, and a confidentiality notice. Ask to see their identification and their badge before answering their questions.

However, you should not invite anyone into your home. Do not give your Social Security number, credit card or banking information to anyone, even if they claim they need it for the census.

While the Census Bureau might ask for basic financial information, such as a salary range, don't give them anything pertaining to your financial situation. Also, they should not be asking for any donations, so don't give them money. 

If they start with any pressure or you are not comfortable with the questions, please close the door and call the police. Also be advised that according to the Census, they will not be using anyone with the community group ACORN. If a worker says they are with ACORN, feel free to close the door and report it to the police.

Also, census workers will NOT contact you by e-mail. Do not respond to anyone claiming to be with the U.S. Census by e-mail. Use the ``delete'' key!

Keep in mind that you will not receive a 2010 U.S. Census form until March of 2010. No one will come to your door if you complete the form and mail it back to the 2010 U.S. Census office on or before April 1. If you did not complete the form for your address, then you will be contacted by a worker.

The Census is extremely important. That is how our State and County gets money from the federal government, so I encourage everyone to participate. Lord knows this state and county are disasters when it comes to proper funding for many services we need. So please do your best, but also be totally aware and cautious so as not to become a victim of fraud or identity theft.

Again, when in doubt, please call police.


Carmen Caldwell, for The Miami Herald. January 17, 2010

Naples residents and leaders sound the alarm over cost of condo sprinkler system retrofit..

Naples homeowners aren’t happy about the potentially staggering costs associated with complying with the Florida Fire Prevention Code.

The Naples City Council this week discussed the cost associated with complying with the recently revised code. The discussion came about a month before City Council is scheduled to sit down with representatives from the state fire marshal’s office to discuss a state-mandated sprinkler system retrofit. The retrofit must be done by Dec. 30, 2014. But Monday’s discussion had less to do with the retrofit and more to do with code violations that have been popping up in low-, mid- and high-rise condominium complexes in the past few months.

Fire Chief Stephen McInerny has said that the city began inspecting multifamily residences back in June. Those inspections, he said at the time, turned up code violations that had been in place for a while. Those condominiums now need to get in compliance, McInerny said, something that could come at a high cost.

In a memo to City Council members, McInerny outlined the potential costs to condominiums for different code violations. McInery said the pricing — which came directly from fire alarm companies — varied, and he didn’t have an estimate for how much residents will have to pay to get their units in compliance.

That concerned Councilman Gary Price. “We have the obligation to try and work through how many buildings and what the costs are,” he said. “When I asked for the associated costs and estimates, I got a one-page memo and no one can tell me how many units are affected. Our citizens deserve better. I deserve better. We deserve better.” Residents agreed. Condominium owners said the estimates McInerny presented to council weren’t exactly on target.

Ewing Sutherland, president of Gulfside Condominium Association and a member of the Community Advocacy Network, said the retrofits and push to comply were proving costly for condominiums. “This enormous cost associated (with it) are unaffordable by many owners,” Sutherland said. “It could also put associations into receivership.”

McInerny said the high cost could be because some associations are making the choice to retrofit the sprinkler system in addition to making changes to get them in compliance with code. And while McInerny said he understood the frustration condo owners were experiencing, he also said he couldn’t turn a blind eye to code violations.

“What do you want me to do, just ignore it?” McInerny asked. You have violations that exist now and (we’re working to see) how they can be corrected.” McInerny said his department is willing to work with associations in order to comply with current code.

Taken from Connect with Naples.

Four Points Property Management Welcomes New Client Communities..

Four Points Property Management proudly announces three new Community Association Management clients; Sunshores Condominium Association located in North Miami Beach, Florida, Monterey Gardens of Pinecrest Condominium Association located in Pinecrest, Florida, and Kenland Walk II Condominium Association located in Kendall, Florida.

Four Points Property Management will provide the following services to the association as part of their Management Agreement; administrative management services, financial management services including payment of all association invoices, preparation of monthly financial statements, and also physical property management services and project management. Additionally, Four Points Property Management will prepare the associations annual budgets, annual meeting and elections, and will also provide Board of Director support and education. The Company will also be providing weekly maintenance and janitorial services.

Follow the links below to read our recent Press Releases:

Kenland Walk II Condo - Press Release

Monterey Gardens of Pinecrest Condo - Press Release

Sunshores Condo - Press Release

We welcome our new clients, we are excited to have them on board and we are looking forward to working with them!

Insurance? For What??

Every resident of a Condominium Association should carry homeowners insurance on their home and personal items. Each unit owner is responsible for purchasing and maintaining their Condo Unit Owners Policy (HO-6 Policy).

Why do you need this insurance? Doesn’t the association carry insurance of some kind? Yes the Association does carry insurance… On the building and common elements only. The Association Master Policy does NOT include coverage for the units themselves or the homeowner’s personal belongings. Association coverage does not include anything within your unit walls. If you’re a homeowner you are responsible for the inside of your unit as well as all of your personal belongings in the event of a fire, flood or any other kind of disaster, even a major plumbing leak.

Everyone in your community works hard to enjoy a certain quality of life. Don’t let one unforeseen event ruin it for you. In most cases your auto insurance company would be more than happy to provide any type of personal residential insurance for you. They may even provide a multi policy discount.

A very important coverage for a condo unit owner is LOSS ASSESMENT. This coverage will pay for a special assessment charged to each unit owner by the Condo Association as a result of a covered loss when the Master Policy does not provide enough coverage to pay for the loss. The HO-6 Policy usually provides $1,000 or more depending on the Insurance Company.

If you don’t know what kind of coverage you need, you may submit a copy of the Condominium Bylaws to your agent. Remember that your insurance is only as good as the carrier you choose and the agent you work with; make certain to pick a carrier with a good reputation. You get what you pay for.

If you have any questions, or need assistance selecting a qualified agent, our office staff is available to assist all of the homeowners in your community.