Major Win for Homeowners Associations: Corporate Transparency Act Requirements Lifted

In a major and welcome development for community associations, the Financial Crimes Enforcement Network (FinCEN) announced an interim final rule eliminating beneficial ownership information (BOI) reporting requirements under the Corporate Transparency Act (CTA) for U.S.-formed entities—including homeowners associations (HOAs). 

The updated rule redefines “reporting company” to apply only to foreign entities registered to do business in the U.S., thereby exempting U.S.-based HOAs and other domestic nonprofit corporations from the time-consuming and costly federal reporting mandates. The change is effective immediately.  

Association Management Group (AMG) has actively lobbied against the implementation of these reporting requirements, recognizing that the CTA would have cost HOAs and other community associations thousands of dollars in unnecessary man hours, forcing volunteer boards to navigate frivolous and burdensome federal filings. This regulatory rollback is a direct result of widespread industry and public feedback—including advocacy efforts by AMG and other leaders in the association management field.  

What HOAs Need to Know:  

•             The CTA no longer applies to U.S.-formed HOAs and community associations.

•             The reporting requirement now applies only to foreign companies doing business in the U.S.

•             Foreign entities are still subject to revised reporting deadlines, but are no longer required to report U.S. beneficial owners.  

This is a significant relief for community associations across the country, many of whom faced confusing and intrusive requirements that had little relevance to their nonprofit, residential missions.  

As always, AMG remains committed to keeping our communities informed and protected. We proactively track legislative and regulatory developments that impact our clients and provide timely guidance to help HOA boards focus on what matters most: serving their communities.  

For more detailed information on the new rule, please visit: 

FinCEN Removes Beneficial Ownership Reporting Requirements for U.S. Companies and U.S. Persons, Sets New Deadlines for Foreign Companies  

Please note: AMG’s guidance is provided for general informational purposes only. We strongly encourage all HOA boards to consult legal counsel when interpreting or acting upon federal regulations such as the CTA.  For questions about this development or any other matter affecting your community, please contact your AMG community manager or visit us at amgworld.com.

Can an HOA in SC give you a real speeding ticket?

HOAs in South Carolina have the authority to set speed limits on private roads, but they must obtain approval from the county sheriff and follow proper signage regulations. While HOAs cannot issue state-recognized speeding tickets or make arrests, they can enforce fines for speeding violations as part of their governing documents. Homeowners who receive a fine can dispute it through the HOA’s dispute resolution process, but refusal to pay could lead to further civil penalties, including potential foreclosure in extreme cases. Additionally, HOAs can hire private security or off-duty officers to patrol, but these officers can only issue citations on behalf of the HOA, not the state.

Source: TheIslandPacket

HOA fees are becoming more common — and costly

More homes for sale in 2024 came with homeowners association (HOA) fees, and those dues increased from 2023, according to a Realtor.com report. HOA fees, which cover maintenance and amenities, can be a financial hurdle for buyers in an already expensive market. Nationwide, 40.5% of homes listed had HOA dues, with the median monthly fee rising from $110 to $125. Experts advise buyers to check an HOA’s reserve funds to avoid unexpected fee hikes, and those looking to avoid HOA fees may have better luck in Charleston, South Carolina.

Source: Axios

CTA NATIONAL UPDATE: Corporate Transparency Act Suspended for Domestic Reporting Companies

This article was originally published on March 3, 2025 by Community Association Institute for Community Association Institute Advocacy Blog.

On March 2, the U.S. Treasury Department issued a statement regarding enforcement of the Corporate Transparency Act.   

The official notice says, “not only will it not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory guidelines, but it will further not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect either.”   

Further, the department said it will be issuing a proposed rulemaking to narrow the scope of the act to foreign reporting companies only.  

This recent action is interpreted to mean the Corporate Transparency Act and its reporting requirements are no longer in effect for U.S. citizens or domestic reporting companies, including all applicable community associations.   

We thank the many CAI advocates who contacted their members of Congress to express their opposition to the act’s reporting requirements for community associations. Your voices were heard!  

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 filed its reply on February 28, 2025.

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. 

Pickleball Court Costs & HOA Considerations: What Association Leaders Need to Know

By Paul Mengert, CEO of Association Management Group

Thinking of adding a pickleball court to your HOA? Learn about costs, legal considerations, and community impact in this guide for association leaders.

Introduction: The Growing Demand for Pickleball in HOAs

Pickleball is one of the fastest-growing sports in the U.S., and many homeowners’ associations (HOAs) are being asked whether to add courts to their communities. While new amenities can enhance property values and resident engagement, they also require careful financial planning, legal review, and member support analysis.

As the CEO of Association Management Group (AMG)—one of the Carolinas’ leading community association management firms—I frequently advise HOA boards on new amenity projects, including pickleball court construction. This blog provides a general cost breakdown, discusses court construction challenges, and highlights legal and financial considerations for association leaders.

Important Note: Pickleball court costs vary widely by location, surface material, and site conditions. This guide is intended as a starting point—HOA boards should consult legal, financial, and real estate experts before proceeding.

How Much Does It Cost to Build a Pickleball Court?

The cost of constructing a dedicated pickleball court ranges from $35,000 to $80,000. Several factors impact the final price:

1. Court Size & Layout

- Standard court (30' x 60'): $35,000–$50,000

- Larger court (34' x 64'): $40,000–$80,000

- Multi-court complexes save on per-court costs due to shared site preparation.

2. Surface Materials

- Post-Tension Concrete (Best Option) → $20,000+

- Rebar-Reinforced Concrete (Good Option) → $15,000+

- Asphalt (Budget Option) → $10,000+, but higher maintenance costs

- Acrylic Surfacing (Required for Playability) → $5,000–$15,000

3. Fencing & Lighting

- Chain-link fencing (4ft high) → $35 per linear foot

- Vinyl-coated fencing (10ft high) → $125 per linear foot

- Basic LED lighting → $2,500

- Tournament-quality lighting → $12,500

4. Site Preparation & Drainage

- Flat land → Lower costs

- Hilly terrain or poor soil → Adds $10,000+ in grading and drainage solutions

Converting a Tennis Court into Pickleball Courts

A cost-effective alternative is converting an existing tennis court into pickleball courts.

Multi-Use Court Benefits

- A single tennis court (78’ x 36’) can accommodate up to four pickleball courts.

- Dual-use lines allow tennis and pickleball play on the same surface.

- Portable pickleball nets enable easy switching between sports.

**Conversion Cost Estimate:**

- Painting pickleball lines → $1,000–$3,000

- Adjustable net systems → $150–$500 per court

- Total cost: Much lower than building a new court from scratch

Challenges & Considerations for HOA Pickleball Courts

1. Noise Concerns

Pickleball courts generate more noise than tennis due to the hard paddle-and-ball impact. This has led to complaints in some communities.

Mitigation Strategies:

- Locate courts away from homes

- Install noise-reducing barriers

- Restrict play hours

2. Legal & Liability Issues

HOA boards must review governing documents to ensure they can add a pickleball court without violating existing rules.

Consult legal counsel to determine:

- Whether a membership vote is required

- If insurance policies need coverage adjustments

- Any zoning restrictions that apply

3. Impact on Property Values

While amenities generally increase property values, a poorly planned court could do the opposite.

Best Practices:

- Consult real estate professionals for property value impact analysis.

- Survey homeowners to ensure broad support.

- Plan for long-term maintenance costs.

Assessing Community Support for Pickleball Courts

A common challenge HOA leaders face is vocal minority influence—a small but passionate group may push for a pickleball court, while the majority may not actually want or use it.

How to Gauge True Community Interest:

✔ Conduct surveys to measure overall resident support.

✔ Hold town hall meetings to discuss the pros, cons, and costs.

✔ Weigh input from real estate professionals, appraisers, and financial advisors.

Final Thoughts: Proceeding with Expert Guidance

Adding a pickleball court can be a valuable investment for a community, enhancing recreation, social engagement, and property appeal. However, it’s critical to:

✔ Consult an attorney for legal compliance.

✔ Engage real estate and valuation experts to assess impact on property values.

✔ Survey homeowners to ensure broad support for the investment.

✔ Plan for long-term maintenance and costs to protect the association’s financial health.

By taking a thoughtful, well-researched approach, community associations can make informed decisions that best serve their members both now and in the future.

For more insights on association management, amenities, and budgeting, visit www.AMGworld.com.

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