CAI Lawsuit

Overview: The Anti-Money Laundering/Corporate Transparency Act, enacted in 2021, requires entities to report business ownership information yearly to the Department of Treasury or face strict penalties. Community associations, also known as homeowners associations, condominium associations, and housing cooperatives, account for more than 350,000 nonprofit, local and volunteer-driven organizations throughout the United States. CAI believes the […]

Condo Seeks Bar On Enforcement Of Corp. Transparency Act

A Boston condominium association has asked a federal judge to shield it and other Massachusetts condo boards from enforcement of an anti-money laundering measure, saying the requirement to submit personal information to a government database creates an undue and unnecessary burden on volunteer organizations.   Read the article (PDF)…………………………….

The Corporate Transparency Act: HOAs Don’t Need That Kind of Transparency

One of the hottest topics in the HOA-world over the past year has been the implementation of the Corporate Transparency Act (CTA). Although enacted by Congress in 2021, registrations under the CTA became mandatory for newly formed HOAs on January 1, 2024, and will be mandatory for all incorporated HOAs on January 1, 2025. The […]

Condo Column: The misplaced transparency (NH)

So, this could be a problem.  In 2021 the federal government amended the Anti-Terrorism Act in 2020 by adding to it the Corporate Transparency Act, also known as the CTA. The intent was and is to stop money laundering. But its effect has spread to condominium associations, a strange place to think money launderers might […]

Nonprofit Organizations Pay Over $5.8 Million to Resolve Allegations of Fraudulently Obtaining Pandemic-Related Loans (CA)

Multiple nonprofit organizations—including two private country clubs and two homeowners associations—have paid $5,809,021.60 to settle allegations that they violated the False Claims Act by knowingly submitting false claims and obtaining Paycheck Protection Program loans for which they were not eligible.   Read the article…………………………….

The Corporate Transparency Act – Ethical Issues with Reporting Requirements

The Corporate Transparency Act is a major new federal law that imposes strict reporting requirements on nearly all business entities in the US, including community associations. This new law is significant, as it will impact every community association and every individual homeowner who serves on an association’s board of directors. Compliance with this new law […]

Beware of Scams Related to the Corporate Transparency Act

There has been a great deal written lately about the impact and filing requirements of the Corporate Transparency Act, which is a 2021 federal law aimed at detecting money laundering, terrorist finance and other illicit financial activity. Community associations have been told they are not exempt, and their directors must comply with the Act’s new […]

HOAs Are Reporting Companies Under The CTA

On 4/18/24, FinCEN updated its Beneficial Ownership Reporting FAQs and included for the first time information regarding HOAs (Home Owners Associations). FinCEN confirms in this update that HOAs are reporting companies under the Corporate Transparency Act (CTA) and are subject to BOI (Beneficial Ownership Information) reporting requirements if they are entities created by filing of […]

The Corporate Transparency Act – should your association wait to file a report? (IL)

The Corporate Transparency Act (CTA) aims to help detect and combat money laundering and terrorist finance, facilitate tracking money that has been sourced through criminal or terrorist activity, and safeguard national security and the U.S. financial system.  This act came into effect in January of 2024, and businesses that meet certain criteria are expected to […]

Flying the American Flag On Memorial Day and Flag Day

The unofficial start of summer is here. As we prepare to observe Memorial Day—a day to honor those who died while serving in the U.S. military—many HOA and condo residents across the country will display the American flag.  According to the U. S. Department of Veterans Affairs, the American flag should be flown at half-staff […]

Corporate Transparency Act: CAI challenges act’s constitutionality in court filing

Community Associations Institute filed an amicus brief earlier this week in the United States Court of Appeals for the 11th Circuit challenging the constitutionality of the Corporate Transparency Act.  In March, a district court in Alabama ruled that the act was unconstitutional and exceeded Congress’ authority. Now, as the 11th Circuit hears an appeal in […]

Corporate Transparency Act (CTA) (CT)

The CTA is creating quite a stir in the community association field throughout the country. The CAI national legislative action committee has made considerable efforts to meet with and gain concessions from the Financial Crimes Enforcement Network (FinCEN) trying to gain an exemption or delay. FinCEN is a bureau of the United States Department of […]

Arizona HOA: An Essential Guide to Cultivating Transparency and Trust

Navigating the responsibilities of an Arizona HOA, transparency and trust emerge as pillars essential to cultivating a thriving community. Governed by the Arizona Planned Community and Condominium Acts, these associations are not just about enforcing rules or managing common areas; they’re also about fostering an environment where every member feels heard, valued, and engaged.   Read […]

The Corporate Transparency Act – Ethical Issues with Reporting Requirements

The Corporate Transparency Act is a major new federal law that imposes strict reporting requirements on nearly all business entities in the US, including community associations. This new law is significant, as it will impact every community association and every individual homeowner who serves on an association’s board of directors. Compliance with this new law […]

Government Issues Scam Alert for Corporate Transparency Act

The U.S. Department of Treasury’s Financial Crimes Enforcement Network, also known as FinCEN, recently issued an alert warning individuals and businesses that scammers are using the Corporate Transparency Act to fraudulently solicit information from individuals and businesses who may be subject to reporting requirements under the Corporate Transparency Act.   Read the article…………………………….

Homeowner Associations, Condominiums, and the Corporate Transparency Act (WV)

Since the enactment of the Corporate Transparency Act (CTA), property ownership associations such as homeowner associations and condominiums (collectively, POAs) have struggled to understand their beneficial ownership information reporting requirements under this new disclosure law. Recent guidance has provided much-needed clarity for POAs and their managers, and in many cases, POAs will be required to […]

Supplementary Guidance on Corporate Transparency Act for Illinois Community Associations

On April 18, 2024, the Financial Crimes Enforcement Network of the U.S. Treasury Department (“FinCEN”) issued supplementary guidance on the Corporate Transparency Act (“CTA”) as part of their FAQs. The updated FAQs include guidance specifically for community associations which affirms and is in line with our recent article summarizing what community associations need to know […]

CTA Heats Up with New FAQs, Government and Amicus Briefs and New Draft Legislation

The Corporate Transparency Act (CTA) is the gift that keeps giving. As affected entities and their advisers struggle to determine whether they are subject to the beneficial ownership information (BOI) reporting provisions of the CTA and, if so, how to report, there has been a flurry of activity:   Read the article…………………………….

FTC’s Final Rule: Understanding the Ban on Non-Compete Clauses

On April 23, 2024, the United States Federal Trade Commission (FTC) announced its final rule on non-competition clauses, voting 3-2 to adopt the final regulations, known as the “Non-Compete Clause Rule.” This rule marks a significant milestone, establishing a comprehensive ban on non-compete agreements. The decision comes fifteen months after the FTC released its proposed […]

FinCen Confirms CTA Applies to Associations

Although many concluded that the Corporate Transparency Act (“CTA”) applies to homeowners associations, we now have verification of this. On April 18, 2024, the Financial Crimes Enforcement Network (“FinCen”) issued 16 new FAQs and updated two more. Under Category C, question C.10 of the FAQs, a Q&A was added confirming that CTA requirements apply to […]

The FTC Issues a Final Rule Banning Noncompetes in Employment (TX)

On April 23, 2024, the Federal Trade Commission (FTC) announced a final rule making most non-compete clauses unenforceable. Employers who require their employees to sign agreements with confidentiality, non-compete, and non-solicitation clauses should take note of the new rule and its potential implications for their organizations going forward.   Read the article…………………………….

Corporate Transparency Act and Community Associations: Updates and Compliance (IL)

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…………………………….

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 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…………………………….

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 […]