CTA NATIONAL UPDATE: Beneficial Ownership Reporting Requirements Reinstated by Federal Court

This article was originally published on February 18, 2024 by Community Association Institute for Community Association Institute Advocacy Blog.

Updated February 18, 2025, 6 PM EST

On February 17, the United States District Court for the Eastern District of Texas granted the government’s motion for stay a nationwide injunction(Opens in a new window) halting enforcement of the Corporate Transparency Act in Smith v. United States Department of Treasury. The Court cited the Supreme Court of the United States’ decision to stay the preliminary nationwide injunction in the Texas Top Cop Shop, Inc., matter as precedent for their decision. 

This was the last remaining nationwide order pausing beneficial ownership reporting requirements. Due to this new court order, reporting requirements under the act are reinstated for applicable community associations. 

FinCEN has previously stated they will likely issue a 30-day extension for all entities impacted by the nationwide injunction. We await an announcement from FinCEN on an official extension. 

CAI continues to track movements in the federal courts over challenges regarding the Corporate Transparency Act and has contacted the United States Department of Treasury, urging an administrative delay be issued due to the chaos and confusion created by these recent court rulings and Congress’ deciding not to take legislative action to extend the filing deadline. 

CAI’S FEDERAL LAWSUIT STATUS

On October 24, 2024, CAI’s preliminary injunction request was DENIED by the federal judge in this case. While this decision was not the outcome CAI had hoped for, it does not mark the end of CAI’s efforts. CAI appealed the court’s denial of the preliminary injunction request on November 4, 2024, and on November 12, 2024, filed its opening brief of the appeal in the Fourth Circuit urging a pause on reporting requirements for community associations while this lawsuit is adjudicated. The Government filed it response to CAI's appeal on February 7, 2025. CAI has until February 28, 2025 to reply.

CAI’s other lobbying and advocacy efforts continue on Capitol Hill seeking both a one-year delay of implementation of the CTA’s reporting requirements and an exemption for community associations. The lawsuit itself is continuing to go through the legal process even as the preliminary injunction decision is being appealed. 

The Insidious Effects of Hurrying in Community Association Management

In today’s fast-paced world, the pressure to accomplish more in less time has created a culture of “hurry sickness,” a term coined by cardiologists Meyer Friedman and R.H. Rosenman in 1974. This condition, characterized by chronic rushing, impatience, and a sense of time scarcity, poses serious risks to both individual health and organizational success. For community association managers, board members, and industry professionals, the impacts of hurry sickness can be especially damaging.

Why Hurry Sickness Matters in HOA Management

In the community association management industry, where decision-making, communication, and problem-solving are central, hurry sickness can lead to costly mistakes. A rushed response to a maintenance issue or an unreviewed vendor contract might save time initially, but the long-term consequences—errors, dissatisfied residents, or financial missteps—can outweigh the short-term gains.

Hurry sickness also affects relationships, a cornerstone of effective HOA management. Managers who are always rushing may come across as impatient or dismissive, unintentionally alienating board members or homeowners. This not only erodes trust but also undermines collaboration, which is critical for a thriving community.

On a personal level, hurry sickness leads to burnout. Managers and board members juggling multiple responsibilities often sacrifice self-care—skipping meals, forgoing exercise, or losing sleep—all in the name of productivity. Over time, this takes a toll on mental and physical health, resulting in decreased performance and satisfaction.

A Story from the Field: The Rushed Reserve Study

A seasoned HOA manager, Sarah, received a request from her board to recommend a reserve study vendor on a tight deadline. Feeling pressured to act quickly, she chose a company she had heard about but failed to carefully review their qualifications thoroughly. The study was completed, but it underestimated the association’s funding needs. A year later, the board faced an unexpected shortfall, leading to a special assessment that angered homeowners. 

This situation, caused by haste, could have been avoided if Sarah had paused to more thoroughly vet vendors and discuss options with her board. By slowing down and prioritizing due diligence, she could have saved the community from financial stress and frustration.

Practical Strategies for Managers and Boards

     1.        Implement Prioritization Tools: Use methods like the 4D system—Do, Defer, Delegate, or Delete—to focus on what truly matters. Discuss priorities with your manager or board to ensure alignment.

     2.        Build Buffer Time: Schedule time for deep work and reflection. Block out parts of your calendar to avoid back-to-back meetings and give yourself time to think critically.

     3.        Practice Mindfulness: Take a few minutes each day to practice mindfulness techniques, such as deep breathing or focused attention. These small breaks can reduce stress and improve focus.

     4.        Pause Before Saying Yes: Evaluate whether a task aligns with your goals or whether it can be delegated. Write down the consequences of agreeing to additional tasks and discuss them with your manager to avoid overloading yourself.

     5.        Strengthen Collaboration: Managers and boards should work together to create realistic plans for handling responsibilities. If you need help developing such a plan, talk to your manager or email me for more guidance.

Take Action Now

Hurry sickness is not just an individual issue—it’s a cultural challenge in industries like community association management, where speed is often equated with success. By slowing down and adopting thoughtful strategies, managers and board members can improve decision-making, strengthen relationships, and achieve better results for the communities they serve.

If you’re feeling the pressure to always hurry, remember: it’s not about how fast you go, but how effectively you use your time. Let’s work together to create a more balanced, productive approach to HOA management.

Trump Administration Defends Corporate Transparency Act

On February 5, 2025, the Trump administration filed an appeal and motion for stay against an Eastern District of Texas injunction that paused enforcement of the Corporate Transparency Act (CTA) filing deadline. If granted, the stay would extend the deadline by 30 days, allowing the Treasury Department to reassess filing requirements for lower-risk entities. The CTA, originally passed during Trump’s first term but implemented under Biden, has faced legal challenges, with some courts ruling it unconstitutional while others uphold it. While enforcement is currently paused, a stay or court ruling could reinstate the deadline at any time, prompting entities to consider filing preemptively to avoid last-minute complications.

Source: NatLawReview

Mastering Focus in a Distracted World: Essential Habits for HOA Professionals

In today’s fast-paced digital landscape, staying focused isn’t just a personal challenge—it’s a professional necessity. For those of us in the HOA management industry, distractions are everywhere. Emails flood in, homeowners call with urgent questions, board members require updates, and our own devices constantly pull at our attention.

At Association Management Group (AMG), our success depends on our ability to concentrate, prioritize, and execute. Yet, with so many demands, it’s easy to feel scattered. How can we reclaim our focus and stay productive in a world designed to disrupt us? Drawing from research and real-world experience, here are seven habits that can help you sharpen your focus and enhance your effectiveness—whether you're managing properties, leading a team, or supporting a community.

1. Set the Stage for Deep Work
Think of your brain like a high-performance engine—it needs the right conditions to function at its best. Just as we remind HOA boards to set clear meeting agendas for efficiency, we must create an environment that supports deep focus.

- Turn off notifications during critical tasks. Research shows that a single distraction can take 23 minutes to recover from—an expensive cost in our line of work.
- Designate a workspace free of unnecessary clutter or noise, signaling to your brain that it's time to concentrate.
- Batch similar tasks together instead of switching between emails, calls, and reports. This reduces cognitive load and improves efficiency.

Example: Imagine a community manager trying to complete annual budget reports. If they check their inbox every five minutes, the constant context-switching slows them down. Instead, by setting a dedicated 90-minute "focus block," they finish faster and with fewer errors.

2. Identify Your Peak Focus Hours
Not all hours of the day are created equal. Studies on productivity reveal that most people hit peak concentration mid-morning and mid-afternoon. Understanding your personal energy rhythms allows you to schedule important work accordingly.

- Track your energy levels for a week. When do you feel most focused? When does your attention wane?
- Schedule high-priority tasks—like strategic planning or contract negotiations—during peak mental hours.
- Save administrative tasks—such as emails or routine follow-ups—for times when focus naturally dips.

Example: A regional director overseeing multiple HOA properties schedules financial planning meetings at 10 AM when they’re most alert, saving email responses for the afternoon slump.

3. Reduce Decision Fatigue
HOA managers and support staff make countless decisions daily—from resolving homeowner disputes to coordinating maintenance. Over time, decision fatigue leads to procrastination and poor judgment.

- Automate routine decisions. Create templates for common communications (e.g., violation notices, fee reminders) to reduce mental strain.
- Use standardized processes for common workflows, such as onboarding new communities.
- Prioritize three key tasks daily instead of reacting to every issue that arises.

Example: Instead of deciding each time how to address late assessments, a property manager creates a pre-written escalation policy, allowing them to act quickly while staying consistent.

4. Train Your Brain to Recognize Distractions
Distractions aren’t just external (calls, emails, social media); they’re often internal—habitual behaviors that derail focus. The key is meta-awareness—recognizing these impulses and redirecting attention.

- Ask yourself: “Why am I checking my phone right now?” Is it boredom, stress, or avoidance?
- Create friction between you and distractions. Use an app blocker or keep your phone in another room.
- Use a physical notepad instead of opening another tab to jot down ideas, avoiding digital detours.

Example: A community manager realizes they reflexively check social media between meetings. By keeping a notepad for quick thoughts, they stay engaged without the risk of a 20-minute scrolling session.

5. Strengthen Focus Through Clear Goal Setting
Clarity drives focus. As William James, the father of American psychology, said: “The art of being wise is the art of knowing what to overlook.”

- Write down your daily goals and place them where you can see them.
- Tie tasks to a bigger purpose. For example, instead of "responding to homeowner emails," frame it as "enhancing community satisfaction by resolving concerns."
- Use visualization techniques—picture the feeling of completing a project successfully.

Example: Before a board meeting, a manager visualizes a productive discussion leading to a decisive vote on a new policy. This mental rehearsal reduces anxiety and sharpens focus.

6. Prioritize Real Breaks (Not Digital Escapes)
Scrolling on your phone isn’t a real break—it’s another form of cognitive input that exhausts the brain. Instead, focus on restorative activities:

- Step outside for fresh air between tasks.
- Engage in short physical movement, such as stretching or walking, to boost circulation.
- Practice mindful breathing to reset your focus.

Example: An assistant property manager feeling overwhelmed takes a five-minute walk outside instead of browsing emails during lunch, returning refreshed and ready to tackle the afternoon.

7. Cultivate Stronger Conversations
HOA management is built on relationships—with homeowners, vendors, and board members. But in an era of distractions, true listening is becoming rare.

- Put your phone away during meetings—your attention signals respect.
- Use active listening by paraphrasing what others say before responding.
- Pause before replying to allow for more thoughtful responses.

Example: A board president shares concerns about landscaping costs. Instead of multi-tasking, the manager fully listens, asks clarifying questions, and provides a well-considered response—building trust in the process.

Final Thoughts: Attention is Your Competitive Advantage
At AMG, our ability to focus directly impacts our success. Whether negotiating vendor contracts, resolving community issues, or leading strategic growth, how we manage attention determines our results.

By implementing these habits, you’ll not only increase productivity—you’ll feel less overwhelmed and more in control of your day. The best part? The more you practice, the easier focus becomes.

What Should Your Community Association Do If an Injury Occurs on Common Property?

When someone is injured on common property, it can be a stressful and potentially serious situation. The first priority is always the health and well-being of the injured person. As a board member, you or your management team should begin by providing empathy and immediate assistance. If the injury appears serious, call 911 right away and administer basic first aid if possible and safe to do so. Ensuring that emergency medical services are notified promptly is crucial in safeguarding the individual’s well-being.

Once the situation is under control, the next step is crucial but often overlooked: notify your community association’s insurance provider. This is where many well-meaning boards make costly mistakes by attempting to resolve the issue themselves. Here’s why promptly involving your insurance company is essential for associations in North and South Carolina.

Why Self-Help Solutions Can Be Risky

It may seem tempting to handle the situation within the board or management team. You might want to offer compensation or agree to cover medical costs out of goodwill. However, doing so can create unintended legal and financial consequences. Any statements made, promises given, or payments offered could be seen as admissions of liability. This can complicate the situation and expose your community to significant risks, including lawsuits or excessive claims.

A Cautionary Tale: When a Board Tried to Handle an Injury on Their Own

A few years ago, a resident named Sarah slipped on a wet spot near the pool in her community in Greensboro, NC. The board members on-site, wanting to help, quickly reassured Sarah that the association would cover her medical bills. They even offered her a small payment to cover initial expenses, thinking it would resolve the situation amicably.

However, things became more complicated than they realized. Sarah had a pre-existing ankle injury from years earlier, which contributed to the severity of her condition and the need for surgery. When the board later tried to argue that the injury was only partially related to the fall, their previous promises undermined their position. Since they had already offered compensation without involving the insurance company, the association was seen as having admitted full liability.

Without proper documentation or an official investigation, the insurance provider had limited options to defend the claim. The case ended up in court, and the association faced not only costly legal fees but a large settlement. This ultimately led to a special assessment on homeowners to cover the expenses.

This situation could have been avoided had the board followed protocol by offering immediate empathy and support while referring the claim to their insurance provider. By doing so, the association would have ensured a thorough investigation, accurate liability assessment, and professional claim management.

How Insurance Protects Your Association

Your insurance provider plays several key roles in managing incidents on common property:
1. Investigation and Evidence Collection: Adjusters and investigators can quickly gather the facts, ensuring an accurate and thorough understanding of the incident.
2. Liability Assessment: They determine whether the association may be held responsible and handle communications with the injured party.
3. Legal Defense: If the injury leads to a lawsuit, your insurance coverage typically includes legal defense. Without this protection, the association could face steep legal fees and court costs.
4. Settlement Negotiation: Insurers have extensive experience negotiating fair settlements, often achieving better outcomes than what a board might secure on its own.

Compliance with Policy Terms

Most insurance policies include provisions that require prompt notification of potential claims. Failure to comply can jeopardize coverage, meaning the association could be left paying out-of-pocket for damages, legal fees, or medical expenses. By reporting the incident immediately, you ensure that your association remains in compliance with its policy, protecting your financial interests.

What to Do After an Injury

Here’s a quick checklist for boards and community managers:
1. Prioritize Safety and Health: Provide first aid and call emergency services if needed.
2. Document the Incident: Record details such as the time, location, nature of the injury, and any witnesses.
3. Notify Your Insurance Provider: Report the incident promptly, allowing them to take over claim management.
4. Avoid Direct Negotiations: Refrain from making promises, admitting fault, or offering compensation. Leave all communications regarding liability to your insurance company.
5. Follow Up: Work with your insurance provider and management team to stay updated on the claim’s progress.

Final Thoughts

As a community association board member, you have a fiduciary duty to protect the association’s resources and legal standing. Accidents can happen, but how you respond can make all the difference. By prioritizing the injured person’s health and promptly involving your insurance provider, you minimize risks, protect your community, and ensure that the situation is handled professionally and compassionately.

At Association Management Group, we specialize in helping associations in Greensboro, Winston-Salem, Charlotte, and Greenville develop effective risk management procedures. Our experienced team works closely with communities to ensure they’re prepared for any situation that may arise.

Contact us today to learn more about how we can support your community!

CTA National Update

The U.S. Supreme Court granted a stay on the nationwide injunction against the Corporate Transparency Act (CTA), but a separate Texas court order still pauses reporting requirements, meaning companies are not currently required to file beneficial ownership information. FinCEN confirmed that while reporting is paused, companies may still voluntarily submit reports. The CAI is tracking court developments, urging the Treasury Department to delay enforcement due to legal confusion. The legal battle continues, with the Fifth Circuit upholding an injunction and CAI filing amicus briefs to support the pause on enforcement.

Source: CAI

HOA, condo association group weighs in on foreclosures over unpaid assessments, fines

Recent headlines have highlighted controversial HOA and condo association foreclosures, prompting legislative action in several states to impose stricter foreclosure procedures. In response, the Community Association Institute (CAI) updated its foreclosure policy, emphasizing fairness, reasonable payment plans, and foreclosure as a last resort. The policy ensures homeowners have opportunities to resolve delinquencies while preserving associations' ability to collect dues and secure financing. These changes aim to balance homeowner protections with the financial stability of community associations.

Source: MSN

Florida condo owners face hefty fees under new structural reserve laws

A new Florida law requires condo associations to maintain reserve funds for structural repairs, leading to hefty assessment fees for residents, including a $21 million charge at 1060 Brickell. Some owners argue the repairs are not urgent, but the law was enacted after the Champlain Towers collapse to prioritize safety. A hearing is set for January 24 as residents seek to delay or reduce costs, while concerns grow over affordability and the financial strain on homeowners.

Source: CBSNews

Florida has made changes to HOAs as of July 1

A new Florida law, effective July 1, 2024, significantly limits the power of HOAs, aiming to address widespread homeowner complaints about excessive fines, selective enforcement, and lack of transparency. The law prohibits HOAs from enforcing arbitrary rules, such as banning vegetable gardens, regulating non-visible home improvements, or fining residents for minor infractions like trash can placement or holiday decorations. It also caps fines, mandates recordkeeping and financial transparency, and requires HOAs to provide accessible meeting notices and documentation. Additionally, HOA board members must complete training, and accepting kickbacks is now a felony offense, ensuring greater accountability and fairness in community governance.

Source: TallahasseeDemocrat

Trump taps western NC real estate broker as Austrian ambassador

President-elect Donald Trump nominated Art Fisher, a real estate broker from western North Carolina, as the U.S. ambassador to Austria. Fisher, president of Fisher Realty, has been an active supporter of "America First" policies and a donor to multiple Republican campaigns in the 2024 cycle. He is also involved in several organizations, including Brevard College, Pisgah Health Foundation, and the North Carolina Travel and Tourism Board. Fisher holds degrees in business and corporate communications from the College of Charleston and has traveled extensively worldwide.

Trump announced four other ambassadorial nominations: George Glass (Japan), Lou Rinaldi (Uruguay), Stacey Feinberg (Luxembourg), and Leah Francis Campos (Dominican Republic). All nominations require Senate confirmation.

Read More: NC Newsline

Builder turns over HOA to homeowners, some neighbors clash

In Denver, N.C., the turnover of the Fox Chase neighborhood's HOA from the developer to the homeowners has sparked conflict. Residents like Nick Cox criticize the HOA board for being authoritarian, particularly regarding parking and boat storage in the lake community. Others, like Michael Mascaro, attribute issues to inexperience and lack of transparency, citing concerns about communication and financial management.

The HOA defends itself, claiming it has acted in good faith and condemns inflammatory accusations from residents. It highlights that its decisions have been legally reviewed but regrets needing to allocate community funds to address disputes instead of community improvements.

To resolve HOA disputes, residents are advised to unite with neighbors, meet with the board collectively, or consult legal counsel, though this can be costly. Meanwhile, the N.C. General Assembly is considering legislation to increase transparency and limit HOA powers, including timelines for record access and stricter criteria for liens and foreclosures.

Read More: WSOC-TV

Can an HOA in SC make you take down your Christmas lights and decorations when it wants?

Homeowners in neighborhoods with HOAs should be mindful of restrictions on holiday decorations, as most HOAs limit the time they can remain up. Columbia attorney Kathleen McDaniel notes that HOAs can regulate outdoor decorations, flags, and displays if allowed by their restrictive covenants, which commonly include such provisions. HOAs help maintain community standards, which can boost property values.

In South Carolina, about 25% of homes are under HOA regulation, and many allow holiday lights from 30 days before the holiday until the second week of the new year. Non-compliance may result in fines. The South Carolina Department of Consumer Affairs oversees HOA-related complaints but lacks enforcement power, instead tracking and reporting issues to the General Assembly.

Read More: TheState

Navigating HOA Taxes: Deadlines, Forms, and Expert Tips

Homeowners’ associations (HOAs) are generally classified as corporations for federal tax purposes and must file annual tax returns. Even if an HOA is organized as a non-profit at the state level, it typically doesn’t qualify for federal tax-exempt status under Section 501(c)(4) unless it meets specific criteria, such as serving the general public rather than just its members.

HOAs have two primary options for filing federal taxes:

1. Form 1120-H (U.S. Income Tax Return for Homeowners Associations): This form is tailored for HOAs, allowing them to exclude exempt function income—like membership dues and assessments—from gross income. The taxable income is subject to a flat rate of 30% for condominium management associations and residential real estate associations.

2. Form 1120 (U.S. Corporation Income Tax Return): While this form offers a lower tax rate of 21% on net income, it requires more detailed financial reporting and doesn’t provide the same exclusions for exempt function income. HOAs should compare their tax liabilities under both forms annually to determine the most advantageous option.

It’s essential for HOAs to file their tax returns by the 15th day of the fourth month after the end of their tax year, typically April 15 for calendar-year associations. Late filings can result in penalties and interest. Given the complexities of HOA taxation, consulting a certified public accountant (CPA) experienced in this area is advisable to ensure compliance and optimize tax outcomes.

For more detailed information, refer to the IRS guidelines on homeowners’ associations. If you have questions, your HOA manager can provide additional information or connect you with qualified professionals who specialize in HOA taxation.

Editor’s Note: The above information is only provided for general informational purposes and derived largely from the IRS website.

4 Listening Skills Every HOA Leader, Manager, and Customer Service Rep Should Master

Listening is an essential skill for anyone working in HOA management, whether you’re a leader setting strategy, a manager overseeing day-to-day operations, or a customer service representative handling homeowner concerns. The ability to truly hear others can transform a simple conversation into an opportunity to build trust, resolve conflicts, and strengthen community relationships. Based on insights from Debra Schifrin, a corporate consultant and Stanford lecturer, here’s how these listening skills can apply to the HOA business—with examples to bring them to life.

1. Listen Until the End

Too often, we interrupt or jump in with solutions before someone finishes speaking. This can cause misunderstandings or leave the person feeling unheard. Instead, focus on staying present and letting them share their full story.

Example:

A homeowner calls a customer service rep, upset about a billing error. Before they can explain the issue, the rep assumes they understand the problem and provides a quick fix. The homeowner grows more frustrated, insisting, “That’s not what I meant!” By pausing and letting the homeowner finish, the rep learns the error stems from incorrect automatic payment settings—a completely different issue. The homeowner feels heard, and the correct solution is applied.

2. Listen to Summarize, Not Solve

In HOA management, it’s tempting to jump straight to solutions. But summarizing what you’ve heard first ensures you understand the problem and shows the other person you value their input.

Example:

At a board meeting, the HOA manager hears complaints about the clubhouse cleanliness. Instead of proposing immediate solutions, they say, “What I’m hearing is that you’re concerned about how often the clubhouse is cleaned and whether we’re meeting community expectations. Did I get that right?” When board members agree, the manager adds, “Let’s explore ways to address this, whether it’s adjusting cleaning schedules or updating our contract with the cleaning service.” This approach clarifies the issue and builds trust.

3. Balance Relationship and Content

HOA professionals must balance emotional connections (relationship) with practical problem-solving (content). Focusing on one at the expense of the other can alienate homeowners or stall progress.

Example:

A manager receives a complaint from a homeowner about a neighbor violating parking rules. The homeowner is visibly upset, feeling their concerns have been ignored in the past. The manager first acknowledges their frustration: “I understand how upsetting this must be for you. Thank you for bringing it to my attention.” Then, they shift to the content: “Let me review the parking policy and the steps we can take to address this issue.” By addressing both the emotional and practical aspects, the homeowner feels valued, and a solution is in progress.

4. Listen for Values

Behind every complaint or concern lies a deeper value. Understanding these values helps HOA professionals respond in a way that resonates with homeowners and board members.

Example:

A homeowner sends a series of emails complaining about landscaping. At first glance, it seems like minor nitpicking. But by listening carefully during a phone call, the HOA manager picks up on the homeowner’s underlying value: pride in community appearance. The manager responds, “It sounds like keeping our community beautiful is really important to you. I appreciate your passion, and I’d love to work with you on ways to improve our landscaping plan.” By recognizing the homeowner’s values, the manager turns a complaint into an opportunity for collaboration.

Why This Matters in HOA Management

Listening isn’t just about hearing words—it’s about understanding the emotions, values, and concerns behind them. For HOA leaders, managers, and customer service reps, these skills can:

- Strengthen trust and relationships.
- Reduce conflicts by ensuring all parties feel heard.
- Create more effective, personalized solutions.

Paul Mengert, CEO of Association Management Group (AMG), emphasizes the power of effective communication in HOA management. “Our role is to bridge gaps, solve problems, and create thriving communities,” Mengert says. “Mastering listening skills isn’t just beneficial—it’s essential for delivering exceptional service and fostering strong relationships within the communities we serve.”

By adopting these listening strategies, HOA professionals can build stronger, happier, and more engaged communities.

Breaking News: CTA Filing Requirements Paused Again by Fifth Circuit

This article was originally published on December 27, 2024 by Thomas Skiba for Community Association Institute.

On Dec. 26, the full panel of judges of the Fifth Circuit Court of Appeals issued an order vacating the stay of a preliminary injunction halting reporting compliance under the Corporate Transparency Act. The U.S. Department of Treasury’s FinCEN released a statement this afternoon announcing BOI filings are voluntary.  

The most recent decision suspends the upcoming Jan. 2025 deadline requiring community association boards to file sensitive personal information with the government in an effort to combat terrorist activities.  

The latest dramatic decision in Texas Top Cop Shop v. Garland follows a Dec. 23 order reversing a temporary preliminary injunction imposed by the U.S. District Court for the Eastern District of Texas.  

This means beneficial ownership information reporting requirements have been paused again by a federal court for applicable community associations under federal statute. This continues to be a developing issue. Association boards should remain vigilant and informed on these ongoing updates.  

FinCEN issued the following statement “In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.” 

Please visit CAI’s Corporate Transparency Act resource page for additional information. 

Sincerely, 

Thomas M. Skiba, CAE 

Chief Executive Officer  

Community Associations Institute  

UPDATE: Corporate Transparency Act Compliance Back on Hold

UPDATE: Corporate Transparency Act Compliance Back on Hold

December 26, 2024

The Corporate Transparency Act (CTA) is once again on hold. On December 26, 2024, a Fifth Circuit panel reinstated a nationwide injunction blocking enforcement of the CTA, just days after another panel lifted it. This ongoing legal back-and-forth has created significant uncertainty for compliance efforts nationwide.

To recap:

• The CTA, enacted as an anti-money laundering measure, requires U.S. entities that existed before 2024 to disclose their beneficial owners - individuals who own or control the business - by January 1, 2025.

• On December 3, a district court issued a nationwide injunction halting enforcement of the law following a legal challenge.

• On December 23, a Fifth Circuit motions panel lifted that injunction, stating the government is likely to succeed in defending the law's constitutionality.

• On December 26, another Fifth Circuit panel reinstated the injunction to "preserve the constitutional status quo" while the merits of the case are considered.

For AMG clients, this means compliance with the CTA is not currently required. If you are unsure about how to proceed, each community should consult with their legal counsel to determine the best course of action.

AMG encourages clients to wait until compliance is unequivocally required. We offer this recommendation for two key reasons:

1. Avoiding Unnecessary Costs: Premature action could result in expenses that may not ultimately be needed.

2. Minimizing Effort for Volunteer Members: Preparing and submitting the required information is a time-consuming task. Until compliance is mandatory, we believe communities should focus their resources elsewhere and avoid unnecessary burdens on their volunteer members.

For further information, you can refer to the following resources:

• Corporate Transparency Act Blocked by US Appeals Court Again (Bloomberg Tax)

• Corporate Transparency Act Back on Hold for Now (Law Firm Carolinas)

AMG does not provide legal advice. We strongly recommend that clients consult with their attorney before making important legal decisions regarding the CTA or any other matter. We remain committed to monitoring developments and keeping you informed. If you have any questions on this issue, please feel free to reach out to your Community Manager. 

Warm regards,

Dacy Cavicchia, CMCA, AMS, PCAM 
President 
Association Management Group, Inc.

Winter Maintenance Tips for HOA Members in the Carolinas: Protect Your Home and Community

As winter approaches in North and South Carolina, it’s crucial for homeowners to proactively maintain their properties to ensure safety, comfort, and efficiency during the colder months. Neglecting these tasks can lead to costly repairs and potential hazards. Here’s a comprehensive checklist tailored for HOA members:

Proactive Maintenance Saves Money and Hassle
Did you know? Studies show that regular home maintenance can reduce costly repairs by up to 30%! Don’t wait for a problem to arise—take these simple steps to protect your home and your wallet.

1. Clean Dryer Vents

Lint accumulation in dryer vents is a leading cause of household fires. Regular cleaning enhances dryer efficiency and significantly reduces fire risks. Ensure both the lint trap and the external vent are free from obstructions.

2. Test Smoke and Carbon Monoxide Detectors

With increased use of heating systems, the risk of fire and carbon monoxide (CO) exposure rises. Test all detectors monthly and replace batteries as needed. If a unit is over ten years old, consider replacing it to maintain optimal functionality.

3. Schedule HVAC Maintenance

A well-maintained heating system operates more efficiently and has a longer lifespan. Hire a professional to inspect and service your HVAC system, ensuring it’s prepared for continuous use during winter. Regular filter replacements also improve air quality and system performance.

A Winter Story: The Importance of Checking Plumbing

Last winter, a homeowner in one of our North Carolina communities discovered a burst pipe after a cold snap. The damage flooded their home, costing thousands in repairs and temporarily displacing the family. The root cause? An outdoor faucet hadn’t been winterized. Taking just a few minutes to drain outdoor spigots and insulate exposed pipes could have prevented this costly headache. Learn from their experience and winterize your plumbing today!

4. Inspect Plumbing Fixtures and Valves

Frozen pipes can burst, causing extensive water damage. Insulate exposed pipes, especially in unheated areas like basements and crawl spaces. Ensure all valves function correctly and consider shutting off and draining outdoor faucets to prevent freezing.

5. Seal Windows and Doors

Drafts around windows and doors can lead to significant heat loss, increasing energy bills. Inspect for gaps and seal them with weatherstripping or caulk. This simple step enhances indoor comfort and energy efficiency.

6. Clean Gutters and Downspouts

Clogged gutters can cause water overflow, leading to ice dams and potential roof damage. Remove leaves and debris to ensure proper drainage, protecting your home’s exterior and foundation.

Review Your Insurance Coverage

Winter is an ideal time to consult with your insurance agent to ensure you have appropriate coverage for your property. In most cases, the association’s coverage is not all-inclusive and often does not cover individual homes. Understanding the specifics of your policy can prevent unexpected expenses in the event of winter-related damage.

Understand Your HOA Responsibilities

Responsibilities vary by community. Owners should always take an active role in ensuring their property is properly maintained. Review your HOA covenants carefully to understand the specific responsibilities and requirements within your community. Each HOA operates differently, and what is considered an owner’s responsibility in one community may fall under the HOA’s purview in another. When in doubt, consult with your property management company or legal counsel to clarify your obligations and ensure compliance.

By diligently performing these maintenance tasks, homeowners can safeguard their properties against winter-related issues, ensuring a safe and comfortable season. Remember, proactive maintenance not only protects your home but also contributes to the overall well-being of your community.

Storage Caves, a Luxury Condo Garage Storage Developer, to Build 119 Luxury Garages in Fort Mill South Carolina

Storage Caves has acquired 5.5 acres in Fort Mill, SC, to develop a luxury storage facility for RVs, boats, cars, and business inventory. The facility, expected to open by summer 2025, will feature 119 spacious, climate-controlled units with cutting-edge security. Located near the Greater Charlotte area, the development addresses a growing demand for secure and customizable storage solutions. Storage Caves also plans additional projects in the region over the next 18 months.

Read More: Newswire

HOA Manager AMG Announces Good News for Community Associations: Federal Court Halts CTA Filing Requirements Nationwide

Association Management Group (AMG) announced that a federal court has issued a preliminary nationwide injunction halting the enforcement of the Corporate Transparency Act (CTA) filing requirements. The CTA aims to combat financial crimes by requiring organizations, including HOAs, to disclose beneficial ownership information, but the court cited concerns about compliance costs and data privacy. AMG advises community associations to hold off on filing and consult their attorneys for guidance. AMG remains dedicated to informing and supporting associations while offering tailored management services across the Carolinas.

Read More: PRWeb

One dead after carbon monoxide leak at Fayetteville condo, officials say

A fatal gas leak occurred Sunday morning at Lionshead Condos in Fayetteville, N.C., leaving one person dead. Firefighters responding to the scene detected high levels of carbon monoxide throughout the building and began evacuations. Hazmat teams are working to identify the source of the leak, and authorities advise avoiding the area due to ongoing police and fire presence.

Read More: CBS17

Editor’s Note: AMG urges all owners to install and regularly maintain CO2 and smoke detectors.