The Homeowner Reform Leadership National Group (HRLING) is urging members and supporters to familiarize themselves with a federal law that has a broad impact on most US community associations that are incorporated. At HRLING, we strongly believe that this law will benefit community associations. We ask for your support in preventing opposing parties from impeding the passing of this law or excluding community associations from its coverage. Community associations are independent organizations by law and should be subject to financial regulations to prevent scams and fraud. .One law that may benefit community associations is the Corporate Transparency Act passed by Congress in 2021. We request your support in preventing the opposition from impeding the passage of this law or excluding community associations from its coverage. Community associations are independent business organizations that are required by law to comply with financial regulations to prevent scams and fraudulent activities, including money laundering and terrorist financing. Such regulations help track money that has been sourced through criminal or terrorist activity, thereby safeguarding the national security and financial system of the United States. This law is being enforced under the Financial Crimes Enforcement Network (FinCEN). This law applies to corporations that have less than $5 million in gross receipts or sales, fewer than 20 employees and don’t otherwise meet broad exemptions like banks, credit unions, investment companies, venture capital, securities exchanges, or clearing agencies, insurance companies, public utilities, accounting firms, tax-exempt organizations as qualified and determined with status by the IRS, i.e., 501c4 organizations, large operation companies, and inactive entities. This new law will impact community associations incorporated at the state level and will be responsible for filing information with FinCEN through the Beneficial Ownership Information (BOI) reporting requirements. The Beneficial Ownership Information (BOI)
reporting program is slated to be implemented with filings beginning January 1, 2024. The current filing deadline for existing corporations is January 1, 2025. The filing is not yet open. At a minimum, here is what is going to need to be reported by the community association to the
FinCEN federal agency on an annual basis.
● Business name.
● Legal name of board members, birthdate, home address, and identifying number from a driver’s license, state ID, or passport.
● Individual with substantial control. The same information (name, birthdate, home address, identifying number) of person (s) who exercise substantial control over financial reporting for the community association corporation. It is unclear whether a community manager and/or management company qualify as an individual with substantial control.
This is yet to be confirmed. CAI will continue to evaluate this and provide guidance accordingly.

● Changes, corrections, and additions to the filing must occur within 30 days of when you
become aware of the change (i.e., board member moves, is replaced, etc.).
This is very simple information to file. Every board member and property manager who had any inclination to do anything wrong would be deterred, and any illicit actions would be caught. Benevolent associations who act legally and fairly will have nothing to fear from this requirement. Please sign this petition below to help hold HOAs accountable like any other government or corporate entity and protect homeowners and their rights.

PETITION BODY
NON-EXEMPTION FOR HOAS: Community Association Corporate Transparency Act
A petition and letter to:
Senate Banking, Housing & Urban Affairs Members (US Senate)
House Financial Services Members (US House)
I am writing with regard to the Corporate Transparency Act and related Business Ownership Information (BOI) and wish to voice my support for including Property Owners’ Associations (POAs, HOAs, COAs, Community Associations, and the like) as organizations that must report as per the provisions of this Act. Currently, there is little or no oversight or means of
accountability to check and balance the power of HOA Boards and their enormous power over their neighborhoods and resident members.
The examples of corruption, embezzlement, extortion, coercion, racketeering, and general abuse of power are too numerous to mention. Still, they are consistent and can be found dating back
decades in media reports and legal proceedings. Yet, as a recent example, Florida Legislators were compelled to pass FL SB1114/HB 919 this past year. Titled the “Homeowners’ Associations Bill of Rights,” this Act created sweeping reform meant to create protections for homeowners and attempt to return at least some of their rights as Americans to them. This type of protection and reform is needed nationwide.
As volunteer organizations that are often non-profit, Community Associations are able to circumvent corporate and municipal law by creating their own governing documents (such as Private Clubs do), aided by attorneys who profit from their practice and gain support from
legislators through lobbying groups such as the Community Associations Institute, an organization that is known only to have HOA Board interests, and not resident members’ interests, as their priority. They make money if HOAs make money, and that money is usually made through petty fines and violation fees, the practice of “pyramid fees,” placing liens on residents’ homes, and foreclosing on those homes, sometimes with the HOA Board member or a relative buying the property themselves for pennies on the dollar.
The world of HOAs is rife with corruption, greed, and what would otherwise be considered criminal behavior if not for their self-drawn contracts, often signed by home buyers without full knowledge or under duress, which includes exculpatory language to protect malevolent Board
members should they ever be caught in their misdeeds. Having even one method of reporting and accountability to a government entity would do much to protect homeowners from bad acting and criminal HOA Board members. Having this requirement would encourage honest people to
serve on Boards and deter those who volunteer for those positions whose impetus is not the good of the neighborhood but their own avarice and greed. Ultimately, any individual given power over others MUST have a mechanism of oversight and accountability over them to check and balance that power. This is typically a social and legal standard that we can all rely upon for protection and justice from those who would abuse their position. Yet, in the HOA industry, many of us who are at its mercy suffer from abusers who can and do willingly act with impunity.
Sec. 6402(3) of The Corporate Transparency Act declares that “it is the sense of Congress that… malign actors seek to conceal their ownership of corporations, limited liability companies, or other similar entities in the United States to facilitate illicit activity, including money laundering,
the financing of terrorism, proliferation financing, serious tax fraud, human and drug trafficking, counterfeiting, piracy, securities fraud, financial fraud, and acts of foreign corruption, harming the national security interests of the United States and allies of the United States.” Subsection (4)“money launderers and others involved in commercial activity intentionally conduct transactions through corporate structures to evade detection.” For those of us who know Community Associations and how they can operate, this description absolutely includes the potential and, for some, the reality of these criminal behaviors. The CTA is one much-needed step that would help to bring Community Associations into line and compliance with expectations and governance by U.S. Federal law as per Section 6402.5(D) “better enable critical national security, intelligence, and law enforcement efforts to counter money laundering, the financing of terrorism and other illicit activity.” In fact, to think that a person is unqualified and earning their position by little or no other means than volunteering is automatically trustworthy
and not subject to illicit action simply by virtue of their position within a community organization is shockingly fallacious to the point of naivety. Such objection, in fact, should rouse suspicion rather than confidence.
Opponents of including Community Associations in the CTA/BOI requirements will also voice concerns over privacy and personal information. Still, as you are aware, the Act provides for those
concerns in Sec. 6402 (6) and (7). Anyone on a Community Association Board should have no more concern for this than if they were to be on a corporate board of directors or own their own company.
Benevolent actors within the Community Associations have no need to protest or have concerns about required compliance with the Act and the BOI. In fact, it will benefit them, as Associations of honest practice and good standing will be revealed as such, and their reputations and practices can stand as examples for the rest. Malevolent actors and those who support them do have reason to be concerned, and you will likely receive their protests. Yet I ask you to bear in mind that the welfare of the American people, your individual constituents, and those who are vulnerable to those in positions of power are those people who depend on you for protection and who count on you to do the right thing. Those of us who live in HOA Hells, as they are called in our
community, need your help and protection. Including Community Associations under the CTA and BOI requirements would do much to correct the imbalance of power so many of us are subject to. You are welcome to contact me to discuss this matter and my concerns further. Your support and leadership are appreciated.