As many of our clients are now aware, the Federal Corporate Transparency Act (“CTA”) requires condominium and homeowners associations, as well as co-ops (“Associations”), to file documents and information with the Financial Crimes Enforcement Network (“FinCEN”), a bureau of the United States Department of the Treasury.
On December 3, 2024, a federal court (the U.S. District Court for the Eastern District of Texas) published a decision in the matter of Texas Top Cop Shop, Inc., et al. v. Garland, et al. issuing a preliminary nationwide injunction blocking the U.S. Department of Treasury from enforcing the CTA’s beneficial ownership information reporting requirements.
While BRK is still reviewing the court’s opinion and its applicability to our clients, today, the legal team for the Community Associations Institute (“CAI”) issued an opinion stating that the injunction applies to community associations and allows at least a temporary halt of any reporting requirements for community associations nationwide.
BRK will continue to monitor the situation and issue updates as they become available. However, to the extent that your community has not yet filed its report for the CTA, we recommend suspending any such action for the time being. If your community has already filed its documents, no further action is necessary.