HOA Board Members and the Corporate Transparency Act
What is the Corporate Transparency Act and how does it affect you?
The Corporate Transparency Act (CTA) is a federal law meant to combat money laundering. It requires all HOA board members, as well as any owner with 25% or more ownership in the HOA, and anyone with substantial control of daily operations, to report their information by 12/31/24.
The information required is Name, Date of Birth, Address, and Driver’s License or Passport/Passport Cards. As a reminder, the government already has all of this data on you. The purpose of registering as a HOA board member for the CTA is to compile this information in one place for reference to ensure the Act is enforceable.
How do I register?
We are recommending using VF Law, which has a secure platform for filing this information. VF Law specializes in HOA legal matters and is offering this platform so HOA board members can easily comply with the law. CENTURY 21 Northstar/Pacific HOA Management is happy to connect you with VF Law to get started with the platform, or the board is also welcome to contact VF Law (VF-LAW.COM) themselves.
VF Law’s Services, which will require a representation agreement with them, include initial report filing and ongoing reporting assistance. Initial filings are only $750 per entity and $250 per update.
Updates will be necessary and must be reported any time there is a change in Board Membership, or any time a board member’s driver’s license or passport expires. The changes must be reported within 30 days.
What happens if I don’t register on time?
Non-compliance can result in daily fines of $500 and imprisonment for up to 2 years.
What else does the HOA need to do to prepare?
It is suggested that the HOA amends the Governing Documents to list compliance as a requirement to join the Board, and non-compliance as a cause for removal from the Board.
Please reach out to your Community Manager if you have any questions.