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:

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. 

Construction prep begins on $18M downtown Greenville luxury condo development

Construction is set to begin this year on The Avant, an $18 million luxury condo development in downtown Greenville, expected to be completed by summer 2026. Located at 702 S. Main St., the four-story building will feature innovative design elements, including an 84-foot water feature and an automated basement parking system to optimize space and sustainability. Developer Stephen Mack emphasized local talent and Greenville’s heritage in the project, which overcame delays through value engineering to manage costs and enhance efficiency. The Avant aims to set a new standard for Southeast development while offering lifestyle-focused residences.

Read More: GSA Business Report