At ACCU Inc., we understand the importance of staying informed about legislative changes that can impact our clients. The recent enactment of the Corporate Transparency Act (CTA) by Congress in 2021 is a significant development, especially for community associations. This blog post aims to provide a comprehensive overview of the CTA and its implications for our clients.
Understanding the Corporate Transparency Act:
The CTA was established to enhance transparency in financial transactions, primarily to combat money laundering and terrorist financing. It applies to corporations, including non-profit entities like community associations that have fewer than 20 employees and less than $5 million in assets. The law mandates these organizations to report specific information to the Financial Crimes Enforcement Network (FINCEN).
Key Reporting Requirements:
Beginning January 1, 2024, for new entities and January 2025 for existing ones, community associations will be required to submit the following information to FINCEN:
Potential Impacts on Community Associations:
While the CTA is not primarily aimed at community associations, its broad scope means many such entities in Colorado may fall under its purview. This requires a proactive approach to compliance, including understanding who qualifies as an individual with substantial control within the association.
ACCU’s Role and Support:
As your trusted HOA management partner, ACCU is committed to guiding our clients through these new regulations. We can assist in identifying who within your association may need to report and help ensure timely and accurate compliance. Our team is equipped to offer support and resources to navigate these changes smoothly.
CAI’s Advocacy Efforts:
The Community Associations Institute (CAI) is actively advocating for the exemption of community associations from the CTA, citing that the Act was not intended to cover these entities. They are also pushing for a delay in the implementation of reporting requirements and confidentiality in the filings. ACCU supports these efforts and will keep our clients informed about any developments.
While the Corporate Transparency Act introduces new compliance obligations, ACCU is here to ensure that our clients are well-prepared and informed. We recognize the importance of adapting to legislative changes and are dedicated to providing the necessary support and guidance. Stay tuned for more updates and feel free to reach out to us for any specific concerns or questions about the CTA and its impact on your community.
H.R. 3700 was introduced for the purpose of reforming the process utilized by FHA to certify condominium associations. On July 29, 2016, H.R. 3700 was signed into law by President Obama. H.R. 3700 has been supported by CAI and considered a much needed change in the industry.Key changes set forth in H.R. 3700 include the following:
Now that the bill is officially law, the FHA will begin its implementation, which will involve changes to FHA regulations and existing agency guidelines.