Falls Church, Va., Oct. 11, 2024 (GLOBE NEWSWIRE) -- Today, the United States District Court for the Eastern District of Virginia will hold its first hearing in the case of Community Associations Institute, et al. v. Janet Yellen, et al. Community Associations Institute, the leading international authority on the community association housing model that includes condominium associations, homeowners associations, and housing cooperatives, is pursuing a preliminary injunction today in its lawsuit against the United States Department of the Treasury regarding the Corporate Transparency Act. The hearing will take place at 9:00 a.m. ET.
“Today, we seek a preliminary injunction to block the enforcement of the Corporate Transparency Act’s reporting requirements until this matter has been fully adjudicated,” says Thomas M. Skiba, CAE, CAI’s chief executive officer. “Protecting United States community association governance is essential, and we are pursuing this legal action to ensure communities can operate free from unnecessary and burdensome regulations.”
Enacted by Congress in 2021, the Corporate Transparency Act requires entities such as corporations and limited liability companies to disclose personal information about their beneficial owners to the Treasury Department’s Financial Crimes Enforcement Network. While CAI supports the goal of enhancing transparency to combat money laundering and terrorist financing, it argues the law's broad application improperly includes community associations. Unlike traditional businesses, community associations are nonprofit, volunteer-led organizations focused on managing and maintaining communities, with no more financial or ownership interest in the association than their fellow homeowners. Their purpose is not to generate profits or engage in commercial activities, making the application of these reporting requirements particularly burdensome and unnecessary.
CAI seeks to halt the enforcement of the act’s reporting requirements against community associations while the lawsuit is pending. This legal action aims to protect community associations from burdensome regulations that impose significant administrative and privacy challenges on community association board members who volunteer their time and energy for civic purposes.
The purpose of today’s hearing focuses on CAI's request for immediate relief and maintain the status quo as the court deliberates the merits of the case. CAI's legal team will advocate for a rapid response due to the impending Jan. 1 compliance deadline. A ruling on the preliminary injunction will follow in the coming weeks.
For more information on the lawsuit and its impact on community associations, visit www.caionline.org/corporate-transparency-act/.
