I am having a hard time sifting through the internet to find zoning regulations regarding the use of my land if we were to keep and rent it. 

The policy must distinguish between criminal conduct that indicates a demonstrable risk to resident safety and property and criminal conduct that does not.Obtain and use a standard screening policy in compliance with Fair Housing and HUD regulations, and apply it equally to anyone who applies.

Tim is correct in advising you to educate yourself on both your HOA rules, they are in effect your landlord, and your state landlord tenant regulations. 

@Saurin PandyaCreating your own OA is your chance to the set the rules and regulations of your LLC.In the event of a dispute or lawsuit if you did not set out these governing guidelines in your OA then the courts revert back to standard state laws.

I suspect we will see additional state regulations regarding the matter as this always occurs when criminals enter an arena where there are plenty of vulnerable people who give trust long before it's earned.  

Commercial isn't regulated as much as residential.

Welcome to felons becoming a protected class.I can see the regulation if they truly based in on protecting the rights of felons to get decent housing, but by using the backdoor of saying it is racist is just plain nuts. 

That septic setup is huge issue; even though the owner says it's adequate - what are the current state & local regulations regarding septic?

Is 1.5 months prohibited in by local regulations?

The guys mentioned how they have to be energy star rated, double glazed with argon gas in between the two layers in order to comply with the regulations.