Falls Church, Va., April 25, 2024 (GLOBE NEWSWIRE) -- Community Associations Institute (CAI), the leading international authority on community association governance, education, and management, is calling for urgent action on bipartisan legislation aimed at delaying the implementation of the Corporate Transparency Act.
The act poses significant challenges and potential harm to homeowners in community associations, who could face undue compliance burdens and financial strain. CAI emphasizes the need for exemptions and delays in filing requirements to protect these homeowners and ensure the effective governance of community associations.
CAI urges Democrats serving on the Senate Banking Committee to schedule a hearing for the Protect Small Business and Prevent Illicit Financial Activity Act (S.3625), the Senate counterpart to H.R. 5119. The House approved the measure, which delays the implementation of the Corporate Transparency Act, with an overwhelming 420-1 vote in December. Despite bipartisan support, the bill has encountered obstacles in the Senate, where Democratic lawmakers have yet to advance it. Following H.R. 5119's passage, over 80 Senators and Representatives joined together to send a letter to the Financial Crimes Enforcement Network, urging a one-year delay of all reporting requirements under the Corporate Transparency Act.
In March, a federal court found the Corporate Transparency Act to be unconstitutional. This court ruling has created a tremendous amount of confusion for volunteer community association board members. The Foundation for Community Association Research estimates that more than 2.5 million volunteers serve on their condominium, cooperative, or homeowners association board.
“The delay in implementation is vital to the financial and operational stability of the more than 365,000 condominium associations, housing cooperatives, and homeowners association that house more than 75 million Americans,” says Dawn M. Bauman, CAE, CAI’s chief strategy officer and executive director of the Foundation for Community Association Research. “This bipartisan bill offers a much-needed reprieve for community associations, providing them with additional time to navigate the complexities of compliance and safeguard essential services for residents.”
CAI urges Senate Democrats to immediately consider and pass the bipartisan Protect Small Business and Prevent Illicit Financial Activity Act (S.3625) to safeguard community association governance across the country.
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About Community Associations Institute
Since 1973, Community Associations Institute (CAI) has been the leading provider of resources and information for homeowners, volunteer board leaders, professional managers, and business professionals in the more than 365,000 homeowners associations, condominiums, and housing cooperatives in the United States and millions of communities worldwide. With more than 45,000 members, CAI works in partnership with 36 legislative action committees and 64 affiliated chapters within the U.S., Canada, South Africa, and the United Arab Emirates as well as with housing leaders in several other countries, including Australia, Spain, and the United Kingdom. A global nonprofit 501(c)(6) organization, CAI is the foremost authority in community association management, governance, education, and advocacy. Our mission is to inspire professionalism, effective leadership, and responsible citizenship — ideals reflected in community associations that are preferred places to call home. Visit us at www.caionline.org, and follow us at @CAISocial.
