WHAT IS CAI?

Welcome to the CAI Corner!  CAI, or the Community Association Institute, is a global organization with over 64 local chapters, whose membership includes thousands of community association stakeholders, including homeowners, managers, and business partners.  CAI offers its membership a variety of educational, professional development, and networking resources. To learn more about CAI and how to become a member, you can find that information on www.caionline.org.  Once you join CAI, you are assigned a chapter.  RB has memberships with the DC Metro Chapter (https://www.caidc.org/), the Chesapeake Chapter (https://www.caimdches.org/) and the Central Virginia Chapter (https://www.cvc-cai.org/).


This page is dedicated to providing updates on CAI’s latest initiatives and communications that we consider important to our association clients.

 

UPDATES

Reduce Financial Burden for Condominium Associations, SUPPORT HB449/SB446

HB449/SB446 is proposed legislation in Maryland that seeks to increase the maximum deductible that an association can shift to a unit owner if the cause of any damages originates from a unit. Currently, the Maryland Condominium Act in Section 11-114 caps the deductible that can be claimed against a unit owner to $10k regardless of the actual amount of the condominium’s master policy deductible. The proposed legislation seeks to increase that cap to $25k. To participate in the CAI and Maryland Legislative Action Committee’s “call to action”, please use the link below. 

CLICK HERE TO LEND YOUR VOICE

 

Corporate Transparency Act Breaking News: FinCEN Announces Beneficial Ownership Reporting Requirements Remain Paused

On Jan. 23, the U.S. Supreme Court granted the government’s motion to stay a nationwide injunction halting enforcement of the Corporate Transparency Act in Texas Top Cop Shop, Inc. v. McHenry—formerly, Texas Top Cop Shop v. Garland.  

A separate nationwide order issued by a different federal judge in Texas (Smith v. U.S. Department of the Treasury) still remains in place. 

As a result of these disparate decisions, reporting companies are not currently required to file beneficial ownership information with the Financial Crimes Enforcement Network despite the high court’s action in Texas Top Cop Shop. Reporting companies also are not subject to liability if they fail to file this information while the Smith order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports. 

On Jan. 24, FinCEN issued the following guidance, “in light of the recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.” 

According to FinCEN, and as of 12 PM EST on January 24th, this means that reporting requirements under the Corporate Transparency Act continue to be paused for corporations and nonprofits including applicable community associations.  

Status of CAI’s CTA Lawsuit 

While these lawsuits continue to go through the judicial process, CAI’s lawsuit also is still in play. On Sept. 10, 2024, CAI filed a lawsuit against the U.S. Department of Treasury, Secretary Janet Yellen, and the director of FINCEN challenging the application of the Corporate Transparency Act on community associations. This action is being taken to protect CAI members from the burdensome and unnecessary requirements of the act. 

On Oct. 24, 2024, CAI’s preliminary injunction request was denied by the federal judge. CAI appealed the court’s denial on Nov. 4, 2024, and on Nov. 12, 2024, filed its opening brief of the appeal in the Fourth Circuit urging a pause on reporting requirements for community associations while this lawsuit is adjudicated. The government’s response to CAI’s appeal is due on Jan. 31.  

Status of CTA Lobbying and Advocacy Efforts 

With the 199th Congress officially sworn-in, CAI continues its ongoing lobbying and advocacy efforts on Capitol Hill to either repeal or exempt applicable community associations from the CTA’s reporting requirements. H.R. 425 To repeal the Corporate Transparency Act and S. 100 A bill to repeal the Corporate Transparency Act were introduced in January. If passed, both bills will completely repeal the CTA and its beneficial owner reporting requirements.

Please take time today to reach out to your members of Congress to ask them to support H.R. 425 and S. 100, via this link, and share this important request with your neighbors. 

This continues to be a developing issue. Association boards should remain vigilant and informed on these ongoing updates. 

Access additional CAI resources on the Corporate Transparency Act. 

If you have any questions, please contact CAI’s Government & Public Affairs team at government@caionline.org.
 


CAI’s Virginia Legislative Action Committee (VALAC)  Issues a Call To Action Opposing HB 2542- HAM Radio Legislation


HB 2542 is proposed Virginia legislation which aims to prohibit associations from being able to restrict installation of HAM radio antennae upon shared roofing structures, patios, balconies and other areas owned or controlled by owners within condominium, cooperatives, and property owners associations, unless the recorded covenants explicitly prohibit these antennae. 

Please find the link below for the CAI’s VALAC call to action for community associations to oppose HB 2542.OSE HB 2542

https://www.votervoice.net/CAI/Campaigns/120044/Respond

HB 2542 will be heard in a House of Delegate Subcommittee on Thursday, January 23rd, so please act immediately to respond to the Call to Action, if you want your voice heard!

WMCCAI Virginia Legislative Committee, Legislative Update, Wednesday, October 16, 2024, 4:00pm

Join WMCCAI's Virginia Legislative Committee and members of CAI's Virginia Legislative Action Committee to learn about new laws and regulations in Virginia. Ask your questions and get information to bring back to your community to ensure your compliance with the new laws. Hear how you can get involved and make a difference.

The session will include a networking hour following the presentation.

Event details:

Legal Update Series: Virginia | Community Associations Institute - Washington Metropolitan Chapter on Glue Up

ACT NOW - Lend Your Voice, Tell Housing Commission No New Landscaping Rules, Sept 12th 2024

The Community Associations Institute Virginia Legislative Action Committee (VALAC) needs your help! The Virginia Housing Commission is meeting on August 20th to continue discussions started in the General Assembly on HB 528 - Property Owners' Assoc. Act; managed conservation landscaping, unreasonable restrictions prohibited this past legislative session. This legislation would have prohibited associations from restricting owners from installing managed conservation landscaping, unless explicitly stated in the declaration. We need you to sign our petition to let the Commission know that HB 528’s language, as currently written, is harmfully vague, and that associations should have the authority to reasonably regulate landscaping practices and preserve community aesthetics and property values!

The LAC opposed this bill as originally drafted when discussed in the General Assembly earlier this year, as it would override freely negotiated private covenants. Most covenants, even the modern ones, do not address managed conservation features or plans (to permit or prohibit), because this is a newly defined concept/term under the Virginia Code - the bill needs to clarify the protection of existing covenants and allow for flexibility on association rule making authority. 

Additionally, there is a lack of meaningful ability to reasonably interpret and approve or enforce landscaping guidelines by volunteer board/committee members. Volunteer boards and committees will greatly struggle to review requests and enact/enforce rules related to these features because the definition of the conservation plan and what are “unreasonable rules” are defined too broadly in the bill. 

This bill is another example of an attempt to impose a one-size-fits-all approach to regulating community associations. Because this law would apply to all communities, small and large lots, densely populated or not, urban and rural, associations must have flexibility to independently and reasonably evaluate what they consider to be appropriate rules for their community.

Please, join the LAC in expressing concerns about the language of HB 528, and sign our petition today!

CLICK HERE TO SIGN OUR PETITION!

 

 

Tell Congress - Exempt Community Associations from the Corporate Transparency Act Now, Sept 12th 2024

Click Here to Contact Your Member of Congress Today

 
The Community Associations Institute needs your help! On July 15, 2024, Representative Richard McCormick (R-GA-6) introduced H.R. 9045 - To amend title 31, United States Code, to exempt entities subject to taxation under section 528 of the Internal Revenue Code of 1986 from certain beneficial ownership reporting requirements. H.R. 9045 would exempt community associations from the requirements of the Corporate Transparency Act, codifying a needed protection for you and your community. It is imperative that Members of the House agree to Co-Sponsor H.R. 9045, and that the Senate introduce a companion bill. Please reach out to your Member of Congress, even if you have done so already about the Corporate Transparency Act!
 
 
 
 
 
About the Corporate Transparency Act
The Corporate Transparency Act’s current filing deadline for existing corporations is January 1, 2025, and your community association is currently required to file annually the following information to the Financial Crimes Enforcement Network (FinCEN):
  • Business name.
  • Legal name of board members, birthdate, home address, an identifying number from a driver’s license, state ID, or passport.
  • Individual with substantial control. The same information (name, birthdate, home address, identifying number) of person (s) who exercise substantial control over financial reporting for the community association corporation. It is unclear whether a community manager and/or management company qualify as an individual with substantial control. This is yet to be confirmed. CAI will continue to evaluate this and provide guidance accordingly.
  • Changes, corrections, and additions to the filing must occur within 30 days of when you become aware of the change (i.e., board member moves, is replaced, etc.).
Noncompliance of filing could result in civil penalties of $500 per day and criminal penalties of up to $10,000 and up to 24 months in prison. We need your help to get community associations exempted from the Corporate Transparency Act’s filing requirements! 
 
The intent of the legislation was to help detect and report suspicious activity related to money laundering and terrorist finance, to facilitate tracking money that has been sourced through criminal or terrorist activity to safeguard the national security and the financial system of the U.S. This law applies to corporations that have less than $5 million in gross receipts or sales, fewer than 20 employees, and don’t otherwise meet broad exemptions like banks, credit unions, investment companies, venture capital, securities exchange or clearing agency, insurance companies, public utilities, accounting firms, tax-exempt organizations as qualified and determined with status by the IRS, i.e. 501c4 organizations, large operating companies, and inactive entities. 
 
The consensus by community association lawyers is community associations incorporated at the state level will be impacted by this new law and will have a responsibility to file information with FinCEN through the Beneficial Ownership Information reporting requirements. 
 
The legislation explicitly outlines 23 exemptions from reporting requirements (with power reserved for additional exemptions via regulatory action), and one exemption is granted to IRS tax-exempt organizations. Community associations operate like tax-exempt entities—with many small assessments and constrained expenditures. We assert that our members should be extended the same exemption afforded to tax-exempt organizations as outlined in the law. The legislation also explicitly exempts entities that exercise governmental authority. Community associations, while private, exist primarily to govern common interest communities. They are providers of essential services similar to local governments. 
 
Please, take time today to reach out to your representatives in Congress and ask them to support H.R. 9045, and to share this important request with your neighbors!