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Message to current and potential Board Members
As we look forward to the Annual Meeting Season and this year’s Board of Directors elections, we want to bring an important compliance matter to all communities’ attention regarding the Corporate Transparency Act (CTA).
The CTA requires certain entities, including many homeowners’ associations (HOA), to report information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). This effort aims to enhance transparency and combat financial crimes.
What This Means for You:
As a Board Member, you would be classified as a beneficial owner of your HOA. While the Association industry is still working with attorneys and government officials to obtain an exception for homeowner associations, at this time your Board will need to comply with the CTA by providing specific information about each beneficial owner to FinCEN by January 1, 2025. Going forward, Associations will need to file this information for any new Board Member within 30 days of their appointment to the Board.
Information Required:
By being a Member of the Board, the following details will need to be filed with FinCEN:
- Full Legal Name
- Date of Birth
- Current Residential or Business Address
- A Unique Identifying Number from an acceptable identification document (e.g., driver’s license, passport)
Your Commitment:
By remaining on the Board of Directors or submitting your nomination form to be considered for the Board of Directors, you agree to provide the required information and must be committed to ensuring all information provided is accurate and up to date.
Why This Matters:
Compliance with the CTA is mandatory and essential to avoid significant fines and legal penalties. It also contributes to our commitment to transparency and good governance.
If you have any questions about this requirement or need further clarification as you make your decision to either remain or run for the Board, please do not hesitate to reach out. We are here to support you and ensure your questions are answered.
Thank you for considering this important aspect of your potential role. We look forward to the opportunity to work together for the benefit of our community.
