Categories: Board Duties, Community Association Management, Federal Law & Regulations Tags: Beneficial Owner Information, CAI, Corporate Transparency Act, CTA
By Richard S. Ekimoto, Esq Community Associations Institute filed a lawsuit against the U.S. Department of Treasury challenging the Corporate Transparency Act and its application to community associations. The law suit challenges the law on the grounds that community associations are exempt under Section 528 of the Internal Revenue Code and several constitutional grounds. A hearing on a motion for preliminary injunction is scheduled for October 11, 2024. The motion seeks to prevent the U.S. [Read More...]
Categories: Board Duties, Community Association Management, Federal Law & Regulations Tags: Beneficial Owner Information, Corporate Transparency Act, CTA
By Richard S. Ekimoto, Esq. A couple of days ago, on April 18, 2024, FinCen updated its FAQ to add two provisions about community associations. It states: C.10. Are homeowners associations reporting companies?It depends. Homeowners associations (HOAs) can take different corporate forms.As with any entity, if an HOA was not created by the filing of a document with asecretary of state or similar office, then it is not a domestic reporting company. Anincorporated HOA or [Read More...]
Categories: Communications, Community Association Management, Financial & Reserves, General, Hawaii Community Association Statutes, Meetings Tags: Certified Public Accountants, Condominium audits, CPA
By John A. Morris, Esq. Under Hawaii Revised Statutes Section 514B-150, all condominium associations with 20 or more units must annually have an audit and an unannounced cash balance verification. Condominium associations with fewer than 20 units may waive those requirements by a majority vote at a meeting. Subject to certain exceptions, an association must make a copy of the audit available to all owners and must provide a copy to those owners who request [Read More...]
Categories: Board Duties, Community Association Management, Federal Law & Regulations Tags: Beneficial Owner Information, Corporate Transparency Act, CTA
By Richard S. Ekimoto, Esq. Last week, I posted information about the Corporate Transparency Act. The Corporate Transparency Act (“CTA”) is a federal law adopted in 2021 which requires Reporting Companies to file information with FinCen about its Beneficial Owners. In my post, I stated that most of the exemptions for Reporting Companies would probably not apply to community associations. I wanted to provide you with a second take from a good friend of mine, [Read More...]
Categories: Board Duties, Community Association Management, Federal Law & Regulations Tags: Beneficial Owner Information, Corporate Transparency Act, CTA
By Richard S. Ekimoto, Esq. Background about the CTA The Corporate Transparency Act (“CTA”) is a federal law that adopted in 2021. The Financial Crimes Enforcement Network (“FinCen”) in the U.S. Department of the Treasury promulgated regulations implementing the Beneficial Ownership Information (“BOI”) Reporting requirements for all covered entities. The regulations are codified as 31 CFR 1010.380 (“BOI Reporting Regulation”). The CTA and the BOI Reporting Regulation were adopted because: Illicit actors frequently use corporate [Read More...]
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