On April 18, 2024, the Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury issued updated guidance addressing the Corporate Transparency Act (CTA). The CTA directs FinCEN to establish a nationwide database of beneficial ownership of certain corporations and other legal entities including condominium, homeowner (HOA) and townhome community associations. Read the article…………………………….
Regarding who must report Beneficial Owner Information for an incorporated HOA, FINCEN’s FAQ has this to say: (OK)
A homeowners association (HOA) that meets the reporting company definition and does not qualify for any exemptions must report its beneficial owner(s). A beneficial owner is any individual who, directly or indirectly, exercises substantial control over a reporting company, or owns or controls at least 25 percent of the ownership interests of a reporting company. […]
Corporate Transparency Act (CTA) Compliance Condos, Co-ops, HOAs Likely Must Register—or Face Steep Fines (NY)
Back in 2021, Congress passed the Corporate Transparency Act (CTA), a federal law requiring most corporations, LLCs, and other such entities to register with the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN). The function of the Act—which went into effect on January 1 of this year—was to fortify laws around money laundering, corruption, tax […]
The Chaos Inside the Corporate Transparency Act: How you can help now
As of March 1, the Alabama Federal Court found the Corporate Transparency Act to be unconstitutional, and chaos ensued. Unfortunately, the court ruling doesn’t apply to community associations — condominiums, housing cooperatives, and homeowners associations. According to the U.S. Department of Treasury, the only entities this court ruling applies to is the plaintiff, an individual […]
Guiding Arizona Homeowners Associations Through the Federal Corporate Transparency Act Compliance and Reporting
In the ever-evolving legal landscape, homeowners associations (HOAs) and planned communities in Arizona find themselves with some new reporting requirements from the Federal Corporate Transparency Act (“CTA”). This new piece of legislation, aimed at curbing illicit financial activities, necessitates meticulous attention from associations to ensure compliance. As directors, board members, and community managers grapple with […]
FINCEN’s position unclear on HOA beneficial ownership (NV)
We continue our discussion on the Anti-Money Laundering/Corporate Transparency Act and how it will affect our HOAs in Nevada. What is somewhat ambiguous is whether or not community managers will be deemed individuals with “substantial control,” as that term is defined in 31 C.F.R §1010.380(d)(1)(i). When reviewing the definition, it can be argued that, essentially, […]
HOA boards unintended victims of federal law aimed at terrorism
A federal law aimed at curtailing money laundering to benefit terrorists is catching the more than 120 homeowners associations in Ventura County and elsewhere in its net with new beneficial ownership filing requirements. In effect, individuals who are elected by their fellow homeowners to represent their communities could be asked to register with the federal […]
Regulations and Statutes
Homeowners Associations (HOAs) play a crucial role in maintaining the integrity and value of residential communities across the United States. However, managing an HOA involves navigating a complex web of state and federal regulations, as well as adhering to community bylaws and governing documents. Read the article…………………………….
A new anti-money laundering law will affect HOAs (NV)
The Anti-Money Laundering/Corporate Transparency Act was passed by Congress on a bipartisan basis in 2021. The goal of the Act is to empower the federal government to gather financial information about corporations to create more corporate transparency and better discover and combat money laundering, terrorist funding and other financial crimes. Read the article…………………………….
The FCC Wants to Ban HOAs & Apartments from Forcing People to Pay for Cable TV Internet
One of the last things saving cable TV right now are the millions of people forced to pay for cable TV and Internet through cable companies because they live in an apartment or condo that has a homeowners association (HOA). The FCC has proposed new rules that will make it illegal for HOAs and apartment […]
U.S. District Court Strikes Down Corporate Transparency Act (CTA) as Unconstitutional: Impact to Community Associations
A U.S. District Court judge in Alabama recently ruled that the Corporate Transparency Act (CTA) is unconstitutional. The CTA, enacted on January 1, 2021, directs the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) to establish a nationwide database of beneficial ownership of certain corporations and other legal entities, including condominium, homeowner (HOA) […]
Federal Corporate Transparency Act: Alabama Case Creates Confusion, But Compliance Still Likely Required (NY)
A recent Alabama court decision ruled the Corporate Transparency Act (CTA) unconstitutional, creating uncertainty for businesses nationwide. While the case may be appealed, here’s what boards of coops, condos, HOAs, and LLC members in New York, Connecticut and other states need to know right now. Read the article…………………………….
Federal Court Rules Corporate Transparency Act Unconstitutional (FL)
In the landmark case of the National Small Business Association et al. v. Janet Yellen et al., the United States District Court for the Northern District of Alabama the court found the Corporate Transparency Act (“CTA”) to be unconstitutional. Read the article…………………………….
Breaking News: Federal Court Ruled Corporate Transparency Act Unconstitutional – Beneficial Ownership Information Reporting on Hold
In a surprise decision Friday night, a federal district court ruled that the Corporate Transparency Act (“CTA”) is unconstitutional, effectively placing the Beneficial Ownership Information (BOI) reporting on hold. By way of background, the CTA was enacted on January 1, 2021 as part of the 2021 National Defense Authorization Act as an attempt to prevent […]
Wicker bill removes roadblocks for amateur radio operators
According to a summary of the bill, the legislation would prohibit homeowner association rules that prevent or ban amateur radio antennas on residential properties, clarify the approval process for installing amateur radio antennas, and give amateur radio operators a private right of action. Read the article…………………………….
Corporate Transparency Act Reporting Requirements: What Do Illinois Community Associations Need to Know?
In 2021, Congress enacted the Corporate Transparency Act (“CTA”) in an effort to protect the U.S. financial system from illicit use. Generally speaking, the CTA requires business entities operating in the U.S. to report certain information regarding their beneficial owner(s). Read the article…………………………….
The Corporate Transparency Act (“CTA”) (AZ)
The Corporate Transparency Act (“CTA”) is now in effect and Mulcahy Law Firm, P.C. has received several questions on this complex new law that impacts corporations, including Arizona HOAs/condos. Read the article…………………………….
Fannie Mae and Freddie Mac: A New Era of Transparency for Homeowners
In a significant shift towards transparency, Fannie Mae, the Federal National Mortgage Association, has recently announced that it will make its once-secret “Condo Unavailable Projects and Phases Report” accessible to the public. The decision to make this report publicly available reflects a broader industry trend towards transparency, acknowledging the pivotal role that information plays in […]
Alert to Business Owners: New Law Requires Disclosure of Information
In 2021, Congress passed the Corporate Transparency Act, 31 U.S.C. Section 5336 (the “Act”) which requires the reporting and collection of beneficial ownership information for applicable entities. Beneficial ownership information refers to identifying information about the individuals who directly or indirectly own or control a company. Read the article………………………………
Compliance with the Federal Corporate Transparency Act (FL)
Complying with the Federal Corporate Transparency Act may surprise many Florida Corporations, including many Condominium and Homeowner Associations. In 2021, as part of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021, the Federal Government passed a Federal law called the Corporate Transparency Act (the “CTA”). Read the article………………………………….
The Corporate Transparency Act: Your Questions, Answered (NC)
The Corporate Transparency Act was created to provide law enforcement with beneficial ownership information related to specific business entities to detect, prevent, and punish terrorism, money laundering, and other misconduct. Read the article…………………………….
How the Corporate Transparency Act Applies to Community Associations
In 2021, Congress passed the Corporate Transparency Act. Before you stop reading, this law likely applies to your community association and/or the communities you work with every day. This blog post is a bit technical, but please, read on! Read the article…………………………………..
The Corporate Transparency Act (CTA)’s Beneficial Ownership Information Reporting Requirements: What Do Community Associations Need to Know?
In 2021, Congress passed a law to create more transparency as to the individuals that control organizations and corporate entities. The Corporate Transparency Act (“CTA”), adopted in 2021, may begin affecting community associations on January 1st, 2024. Pursuant to the CTA, the Financial Crimes Enforcement Network (“FinCEN”) has enacted a new rule to primarily combat […]
What Is the “Corporate Transparency Act” and Why It Matters to Your Association and Directors
For the past year, community association attorneys have been discussing the impact of the CTA (Corporate Transparency Act). Much of the discussion has been on whether the Act does or does not apply to homeowner and condominium associations. As the effective date of the law is January 1, 2024 (with first reports being due no […]
Corporate Transparency Act Poses Challenges for Homeowner Associations: Most HOAs Will Need to File in the Coming Year
The Corporate Transparency Act (“CTA”) will require most homeowner associations (“HOAs”) to file a beneficial ownership report in the coming year. Although the CTA exempts certain non-profit entities from having to file, most HOAs will not satisfy the requirements to be exempt from the CTA. Raising awareness of this new legal requirement, and collecting the […]
Website Accessibility: The ADA and FHA
In recent years, and trending more frequently as of late, we have heard about businesses, big and small, receiving demand letters related to their website accessibility, alleging ADA noncompliance, and threatening to file suit and seek damages on behalf of the people with disabilities they represent. Here we will cover what web accessibility means and […]
Proposed Bill Would Extend FEMA Aid to Condos, Co-ops, & HOAs
A current bill working its way through Congress would correct a gap in the way the Federal Emergency Management Agency (FEMA) delivers recovery assistance in the wake of natural disasters. Sponsored by Reps. David Rouzer (R-N.C.), Jerrold Nadler (D-N.Y.), and Nancy Mace (R-S.C.) the bipartisan H.R. 3777, also called the Disaster Assistance Fairness Act, would […]
What Is The HOA Open Meeting Act? Are There Guidelines?
While the Open Meeting Act does not universally apply to homeowners associations nationwide, it is still worth understanding what this law entails. In doing so, HOA boards can conduct more effective and collaborative meetings. Read the article………………………..
But My Constitutional Rights?! (VA)
Among the criticisms often levied at community associations is a claim that boards of directors cannot infringe on residents’ Constitutional rights. With Bill of Rights Day being celebrated on December 15th, marking the anniversary of the ratification of the first ten amendments to the United States Constitution in 1791, now is a timely opportunity to […]
What Does IRS 528 Say?
When it comes to federal taxes, many homeowners associations find themselves in a bind. While HOAs are required to pay taxes and file tax returns, they fall into a specific category under the Internal Revenue Service — IRS 528. Read the article………………………..
Top Three Electrifying Tips (NY)
The Inflation Reduction Act (IRA) of 2022 has passed. It comes with significant rebates and tax incentives for electrifying homes and apartments. If taken advantage of at the fullest, the IRA will help NYC coop and condo owners and boards minimize their fines as part of Local Law 97. Read the article………………………..
Are HOA Debts Subject to the FDCPA? (AZ)
he Fair Debt Collection Practices Act (“FDCPA”) is a federal law that establishes protection for consumers from abusive debt collection practices. The FDCPA covers debt used for “personal, family, or household purposes” incurred by a consumer. Generally, when people think of the FDCPA, they are considering credit card debt, third party-debt buyers, medical bills, student […]
Are HOA Debts Subject to the FDCPA? (AZ)
The Fair Debt Collection Practices Act (“FDCPA”) is a federal law that establishes protection for consumers from abusive debt collection practices. The FDCPA covers debt used for “personal, family, or household purposes” incurred by a consumer. Generally, when people think of the FDCPA, they are considering credit card debt, third party-debt buyers, medical bills, student […]
What are Federal HOA Laws and How Do They Impact Arizona HOAs?
Arizona has many state specific laws for planned communities and condominiums, but there are several overriding federal laws that apply to all HOAs. All HOA board members and individual property owners should understand the federal HOA laws that apply to their association and how they impact operations in Arizona HOAs. Read the article………………………..
Federal investigators talk about Surfside condo collapse probe (FL)
Investigators with the National Institute of Standards and Technology (NIST) said the point of the probe is to not only find out what happened and who may be responsible for this deadly collapse, but it’s also to prevent similar tragedies at other high-rises. Read the entire article……………………………….
What Are the Federal Laws That Regulate HOA Communities?
Homeowners associations operate in much the same way as non-profit corporations. In fact, in many states, homeowners associations even have to register as such with the Secretary of State. And, as with other corporations, HOAs must abide by certain federal laws that apply to them. Familiarity with these laws is essential in helping keep the […]
FCC Clarifies Revenue Sharing Rules on Broadband Internet in Condominiums, Housing Coops, and other Multi-Unit Buildings
The Federal Communications Commission (FCC) concluded that revenue sharing agreements and exclusive use sale-and-lease back wiring arrangements between internet service providers and community associations are anti-competitive and violate the commission’s rules. The FCC found that exclusive marketing arrangements between community associations and internet service providers may continue but require arrangements be disclosed to residents. Read […]
The “Validation Notice” and Complying with New FDCPA Regulations
If your association refers delinquent accounts to our firm (or any other law firm or collection agency), you may notice a few changes to debt collection policies and procedures, such as references in collection status reports to sending a “validation notice” as the first written communication sent to a debtor. Why? Because on November 30, […]
Fannie Mae and Freddie Mac: What new lending guidelines mean for your condominium or co-op
Fannie Mae and Freddie Mac released new guidelines in late 2021 that bring additional requirements for condominiums and housing cooperatives. Buildings with five or more attached units must meet updated structural safety standards to secure loans for mortgages backed by the government-sponsored enterprises Read the entire article……………………………….
New FCC Rules Affect Broadband Competition in Multi-Tenant Properties
On February 15, 2022, the Federal Communications Commission (FCC) released a Report and Order (Order) that prohibits cable operators and other service providers from entering or enforcing agreements for exclusive or “graduated” revenue-sharing with owners of residential or commercial apartment buildings, condominiums, shopping malls, and other multi-tenant environments Read the entire article……………………………….
FCC Chair Plugs Plan to Open Apartment, Condo Buildings to Broadband Competition
The Federal Communications Commission is targeting a lingering paradox of telecom: Some of the densest local markets have the fewest options when it comes to broadband providers. Read the entire article……………………………….
Fannie Mae now requires robust reserves (IL)
Q: Can you describe some of the key points of the new Fannie Mae condominium lender guidelines? Read the Q&A………………………………
Land Use and Zoning Basics for Community Associations (NC)
Recently, I detailed a variety of land use laws and land use regulations pertinent to community associations and community association managers. The webinar, which is part of Ward and Smith’s Community Association Building Blocks series, analyzes how municipalities and municipal governments utilize comprehensive zoning ordinances and land use plans to regulate development and how associations […]
Fraud Alert: Mortgagee Questionnaire Scams
In response to the tragedy at the Surfside condominium in Florida, Federal mortgagees are starting to update their questionnaires that are required to be completed in conjunction with the financing of a condominium unit sale. These changes include questions about the current status and condition of the property that are difficult to answer, along with […]
2022 May Add Up to Trouble for Condominiums (CO)
With the turning of the calendar from 2021 to 2022 new Fannie Mae lending guidelines become effective on January 1, 2022. One of the new lending guidelines includes a prohibition on the purchase of loans in communities with significant deferred maintenance or unsafe conditions. These new guidelines are a direct result of the Surfside tragedy […]
FEMA to Issue New Homeowner Flood Form
For the first time in more than 20 years, FEMA has announced plans to make changes to its Standard Flood Insurance Policy (SFIP). Under the proposal, FEMA would introduce a new Homeowner Flood Form, to be published at 44 C.F.R. 61 appendix A(4), that would provide flood coverage for one-to-four residential properties. Read the entire […]
KPRC 2 Investigates cluster mailbox mess: No mail delivery for months in one neighborhood (TX)
Cluster mailboxes are damaged through normal wear and tear or if they’re vandalized. Neighbors in some communities say the United States Postal Service (USPS) previously repaired or replaced them. Now it seems USPS is passing that burden on to customers, but with little direction. Some might say, it’s a real cluster. Read the entire […]
Fair Housing Laws, Disabilities and Associations (WA)
42 U.S.C. 3604 (Section 804 of the Fair Housing Act) applies to Homeowners’ Associations and Condominium Owners’ Associations. 42 U.S.C. 3604 states, in pertinent part: It shall be unlawful … to discriminate against any person in … the provision of services or facilities in connection with such dwelling, because of a handicap. … [F]or the […]