Corporate Transparency Act (CTA) May Force HOA Reporting
Key Questions
What is the Corporate Transparency Act and its potential impact on HOAs?
The federal CTA could require HOAs to file beneficial ownership reports, which would increase compliance costs and fees for homeowners. It was developed in 2017 and enacted in 2021.
Are there legal challenges to the Corporate Transparency Act affecting HOAs?
HOA groups are challenging the law, with the case potentially heading to the Supreme Court. This could affect whether HOAs must comply with the reporting requirements.
What should HOA boards do about the Corporate Transparency Act?
Boards should monitor developments around this potential new regulatory burden. Staying informed will help prepare for any increased compliance obligations or fee impacts.
Federal CTA could require HOAs to file beneficial ownership reports, increasing compliance costs and fees. HOA groups are challenging the law in the Supreme Court; CAI warns of board turnover and volunteer reluctance. No specific HOA exemption exists. Boards should monitor this potential new regulatory burden.