Mark S.
Einhorn
There has been a lot of discussion
regarding the filing requirements for community associations under the newly
adopted CTA regulations in the news
lately.
Some associations have asked whether they should rush to file the
Beneficial Ownership Information Report now or wait until the latter part of
this year.
For now, our best advice is to stay tuned
and revisit the issue toward the later part of the year. There is no rush to
file right now, but the consensus among professionals across the country is the
CTA does apply to community associations.
There are a few reasons we believe it is
more prudent to wait. First, associations in existence before January
1, 2024, have to report by January 1, 2025. There is federal legislation pending that
seeks to extend the deadline to file until 2026. It is very possible that the
extension may be adopted, in which case no filing will be needed until that
date.
In addition, under the requirements, an
association has to report every time there is a change of the board members.
So, if associations file now, they probably will need to file again, especially
if an annual meeting will be held before the end of this year. Lastly, Community Associations Institute
(“CAI”) is also working to exempt condominiums from the requirements.
Mark is a partner at Marcus Errico Emmer
& Brooks PC, concentrating his practice on transactional and condominium
law. He can be contacted at meinhorn@meeb.com
