credit checks

We do not vet new members using credit checks or anything else.

If someone purchases a home within our development, then they are members of the Association.

How does your association go about complying with the Gramm-Leach-Bliley Act of 1999?

I haven't read the entire Gramm-Leach-Bliley Act, but I don't think it would be applicable, as it appears to only apply to financial institutions.

Under what law? Under what penalty?

Where I need clarity is that Kate MAY mean membership on a committee. Otherwise, why mention the prez wanting a Finance Comm off the FC because she's not a director on the board????

The post is confusing.

But I'll try this part, Kate; in most states, it's the board who approves committee members and "fires" them, not the president. In addition, I've never heard of HOA members (Owners) not being allowed to serve on committees except in the below.

Your HOA's bylaws might say who may serve on committees. Or you may have a doc saying who may serve. Our Guidelines for All committees, say, for instance, that committee members must be Owners in good standing, which means that can't be behind in their dues or have uncured violations.

Please clarify your post, Kate.

Committee members should be subject to the same fiduciary obligations as board members. Also, Directors & Officers insurance typically covers committee members. So difficult to decipher what the Prez's issue is.

Agree with Kerry that clarification needed.

Maybe the OP will give more explanation but it will be a cold day in Hell before I would hand over my credit info to an HOA board.

The HOA does NOT rent to people unless they own the rental property. The HOA doesn't own my home and therefore does NOT need my Social Security # nor a background check. If I am a renter, then it's the OWNER's responsibility to do the background check and/or have the social security number. Otherwise I am with Larry... The HOA has no need nor right for my social security number. It's not even on my license. I know of no law that requires me to provide it either to a HOA. Hence why I am not quoting one...

A mortgage company requires a SS# in order to run a credit check on the individual(s) wishing to obtain a mortgage. Is the mortgage company GUARANTEEING the HOA that their decision also guarantees the buyer pays their HOA dues, which, in projects could be $1000.00 per month or more. I bet that Co-ops is Nork York City do this on regular basis.

The CCRs are a contract and an HOA is extending credit, just like a mortgage.

Larry

I am sure you have done your research and you are right.

NpS

Are you saying that an doesn't extend some form of credit, so there really is no need then to repay?

Put this into Google, and see what you come up with.

Can a homeowners association require social security number?

NpS

I know EXACTLY what an CO-Op is versus a condo or a PUD. I helped underwrite CO-OP loans while at Countrywide.

When you did the search, what you found were people not objecting to credit and background check, but that it is a practice, especially in Florida for whatever reason. Nothing saying it can't be found, legally.

Not sure what the OP really was referring as they haven't responded.

If you read a mortgage promissory note it will say payment is due on the first and delinquent by the 15th. It also has a clause of the consequence if the note becomes delinquent. If memory serves me, I believe the CCRs have much the same language, wouldn't you agree?

While a mortgage company reviews the documentation to see if the buyer is credit worthy to repay their obligation, why shouldn't the HOA have the same right. While many dues are only $100 a year, many are over $500 per month. I have seen some in New York City at $10,000 per month.

NpS

"As far as your promissory note example is concerned, it's not the language of the contract that's significant - it's the nature of the transaction. The bank gives you money and you sign a promissory note. The HOA doesn't give you money - so no matter how similar the language is, the transaction is completely different."

The bank didn't me any money to buy the home, they gave the seller or developer the money. What I have is an obligation whether to the mortgage and I have a obligation. I get a statement from the bank, I get a statement from the HOA. I have a Note and Deed of Trust from the bank, I have CCRs and a collection policy from the HOA.

I have no idea what your point is. The HOA's do what they do and until someone says stop, it is what it is.

The HOA can collect because they have the right to lien or foreclose to collect. The lien goes to the property. Hence why one can NOT sell their property until that lien is paid. The foreclosure process is on that lien, that then allows the HOA to sell off that property to collect on it's debt. At NO time is a Social Security number needed in the process. I know. I've done one.

Why do you think I always advise the HOA should avoid lawsuits over applying a lien/foreclosure option? Even in a lawsuit or an eviction, the social security number is NOT needed/required. It's just for collection purposes that one may need the number if awarded. The option of garnishing wages would need a Social Security number to collect. However, a lawsuit award goes against the INDIVIDUAL not the Property. Which means that individual can just go "Puff" into the wind. A lien not so much.

I know this all first hand as have done the process. My renter did not pay rent for 5 months. Took me a few months to evict them out. Had to go to court over the issue. Did not have their social security number. Which meant that could not garnish wages to collect. Instead my option was to find some property they owned. I had the right to collect it and sell it for the money owed. The only trick on that is that it had to equal the money owed and be sold fairly. Which means could not sell a Mustang for a $100 if it's value was $20K and keep the difference. The owner would be entitled to it.

No the HOA does NOT own your property nor signs a lease agreement with your tenant. Which means they are a 3rd party. They can't evict a tenant nor can they prevent someone becoming a member of the HOA. Your a member of the HOA once you pay for that house. Of which the financial institution you got the money from has the right to your Social Security number.

Melissa,

For once you're right! They are not required to have SS#'s, but guess what, there is NO law that says they can't and in Florida as an example, they ask and get SS#'s.

That is a fact, that is not in dispute!

If you look, I don't leave in Florida, actually I don't live in an HOA.

CORRECTED:

Kate,

If you can make it through the thread, here is an option I found when doing a research on the topic that may work for you (the option came from a legal forum):

Re: Do You Have to Give a Condo Association Your SSN :

I called a friend who is attorney in Orlando, he said to print my own Credit Report & omit any reference to SS#'s & any account #'s. Used Experian worked perfectly. Also obtained my own background report & submitted both to the HOA, worked out fine, NEVER give anyone your SS#!!!!! There is always a way around this request.

NpS

When the hell did I ever bring up GLBA? The OP asked about HOA's reviewing credit reports. I did the research and it appears states such as Florida have been, still do, and if not challenged, will continue to do so. I am not here to argue whether they should do so or not.

Maybe more common in condos, I've never heard of any HOAs in my area asking for SSNs.

okay, so we had our meeting last night and I as Treasurer brought up the question as why do we want to look at new members credit reports and financial information. The answer I got was, well we have to make sure that we are letting credible people in our association. We want to see if they pay their bills on time and no foreclosures are on their reports. I argued that if they pay cash or mortgage their mobile homes, we can always put liens on their property if need be. If a bank does a credit report on them, why should we see it.
The final answer was, we have always done this, and it shall continue.

I should also add, that I asked who was on the Finance Committee, and the answer was, it's not a finance committee, we call ourselves a credit committee

Man, I really hate the “well, we’ve always done it this way” response – it’s a sign of lazy thinking! Just because you’ve done this for years and years doesn’t necessarily mean you’ve been right all along – or that the process can’t be tweaked to make it better.

Because identity theft using SSNs is such a big problem these days, maybe you can make these people stop and ponder by asking them to explain insist on specifics!) how this information is secured to insure the wrong people don’t get hold of it. Do this at an open meeting, where everyone can hear what they have to say.

If they start mumbling or looking dazed and confused (and maybe give you the stink eye, but ignore that) smile and remind them the Association may be in for a world of hurt if someone uses that information inappropriately and then sues the Association for damages - and they may or may not be held PERSONALLY liable. That should get their attention.

Like you, I think your board is being ridiculous – as long as the Association gets its money in full and on time, there’s no need for it to need anyone’s SSN. And looking at people’s credit histories doesn’t guarantee anything – things may be ok today, but people can and do have bad luck that’s not always their fault, such as job loss, major medical bills, etc.
.
I was treasurer of my board for 10 years and the only time I asked about SSNs was directed to our association attorney when I asked about wage garnishments to collect delinquent accounts after the homeowner was sued. I never asked to see the SSN – didn’t want to see it, but I did want to know if having that information would help the attorney pursue other collection efforts. If that didn’t work and we had to write off the account, I also wondered about filing a 1099-C with the IRS so the homeowner would have to pay income taxes on the unpaid amount (because it’s considered income).

With my board, they were intrigued, but I don’t think they looked into it further when I left and as you can imagine, there are a lots of ins and outs to this, so if you’re intrigued, talk to your attorney – and perhaps a good tax accountant.