On Monday afternoon, May 6, Phoebe Neseth from Community Associations Institute (CAI) National and the CAI Ohio Legislative Action Committee (LAC) met with a member of Senator Sherrod Brown’s staff to discuss concerns regarding the Corporate Transparency Act (the “Act”) and the requirement that board members, defined as “beneficial owners” in the Act, report to the U.S. Treasury Department’s FINCEN (criminal enforcement arm) annually and provide a copy of a valid driver’s license or passport.

Ohio CAI LAC and CAI National voiced concerns regarding the chilling effect this requirement is sure to have on board members and board elections. Discussions surrounded the issues of: 

• volunteer community members as board members (unpaid or not having professional experience in governing the association);
• the Ohio HOA and Condo Statutes currently in effect, which place standards of practices and procedures for board members;
• the burdensome task of those in the industry who will be in charge of ensuring board members meet the requirements for reporting by the current deadline of January 1, 2025.

CAI has been working with FINCEN through the U.S. Treasury Department to get community associations exempted from the reporting requirements for the Act. This request has been denied but it is hopeful that as additional information continues to be provided to the Treasury Department, an exemption for community associations will be provided through future rule-making.

Near the end of 2023, the House passed, almost unanimously, a bill allowing a delay of one year for the requirement of reporting. This delay would have extended the deadline for 2024 reporting until January 1, 2026. The Senate has the same bill, S.3625, which provides for a one-year delay in reporting. Unfortunately, to date, S.3625 has not been heard by the Senate. 

You can take action to ensure this is heard by the U.S. Senate.

CAI has launched an email campaign on behalf of all Ohio CAI advocates urging them to email Senator Brown’s office regarding this delay issue. Here is a link to the email campaign. Please share with your peers, colleagues, community members, and others who may assist in getting the message out today.

For a full review of The Corporate Transparency Act and how it may affect community associations in Ohio, click here.

You may also call and speak with any of the attorneys at Williams & Strohm, LLC at (614) 228-0207.