As of March 1, the Alabama Federal Court found the Corporate Transparency Act to be unconstitutional, and chaos ensued. Unfortunately, the court ruling doesn’t apply to community associations — condominiums, housing cooperatives, and homeowners associations.  According to the U.S. Department of Treasury, the only entities this court ruling applies to is the plaintiff, an individual business owner, and National Association of Small Businesses members as of the date of the court ruling.   

CAI continues to advocate for an exemption from the act for all community associations and for a delay in implementation by one year. The delay will help us continue to fight for an exemption. Here are the steps CAI is taking, and what you can do to help.  

  1. Gain support from members of Congress 
    • Click here to urge your Senator to push for a delay. In December, the House passed legislation 400-1 to delay beneficial ownership interest filing requirements for one year.  A bill was introduced in the Senate, but many of the Senate Democrats do not support the delay. Contact your Senator, urge support of S. 3625, and sign a petition supporting the delay that CAI will hand deliver to your Senator.    
    • CAI participates in a coalition with more than 130 organizations trying to repeal or delay the act.  Our latest letter can be found here.  
    • CAI’s goal is to exempt community associations from the act because they are low risk for money laundering for terrorist activities.
      Take two minutes to email your Senator today
  2. The gaining of an exemption through the Department of Treasury process continues.  CAI submitted our first request for an exemption in late December.  We’ve emailed and called Department of Treasury staff on numerous occasions without response. The College of Community Association Lawyers (CCAL) is considering another exemption request letter to the Department of Treasury.  
  3. CAI’s College of Community Association Lawyers, an elite group of attorneys who promote the highest standards of professional and ethical responsibility in community association law, convened a small group to explore legal options and strategies for community associations. The CAI Board of Trustees approved the concept of legal action and the CCAL group is identifying potential strategies and resources.  

We’ll continue to update you on our advocacy efforts. In the meantime, bookmark this webpage for updates and subscribe to the CAI Advocacy Blog.  

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