Major Win for Homeowners Associations: Corporate Transparency Act Requirements Lifted
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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:
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.
