The Corporate Transparency Act (CTA), enacted by Congress in
2021, stands as a pivotal measure in the ongoing battle against financial
crimes, including tax evasion, money laundering, and domestic terrorism.
Florida's HOA Landscape and CTA Compliance
Florida claims the nation's second-highest percentage of
residents residing in HOA communities, emphasizing the crucial need to
comprehend and follow the CTA's regulations nationally and within the state.
CTA's Influence on Property Values
Notably, the CTA's influence intersects with another
noteworthy statistic: the average HOA home in Florida boasts an approximately
4% higher property value compared to its non-HOA counterparts.
Compliance
Miami-Dade County is particularly affected by the CTA's
regulations. With a significant portion of residents residing in homeowners'
association (HOA) communities, the county finds itself at the forefront of
ensuring compliance with the federal mandate while navigating its nuances.
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As federal scrutiny intensifies under the CTA, Miami-Dade’s
vibrant community association landscape could serve as a microcosm for
examining the broader implications of this sweeping legislation.
The federal mandate requires corporations, including
condominium and community associations incorporated in Florida, to submit
reports to the Financial Crimes Enforcement Network (FinCEN) detailing
substantial control over the entity by individuals.
Identifying these individuals and consulting association
legal counsel for exemptions based on governing documents and organizational
structures are crucial steps in navigating the CTA's requirements.
Central to compliance is understanding the concept of
beneficial owners, individuals wielding substantial control or
owning/controlling at least twenty-five percent (25%) of ownership or voting
interest.
Compliance entails meticulous gathering and submission of
Beneficial Ownership Information (BOI), necessitating comprehensive details
about beneficial owners and regular updates, particularly in the event of board
or ownership changes.
CTA Deadlines and Reporting Obligations
Community associations formed before January 1, 2024, face
imminent reporting deadlines, while those formed after must adhere to specific
timelines based on their creation or registration dates.
The company formation date determines the BOI initial filing deadline as fllows;
- Prior
to January 1, 2024 January
1, 2025
- After
January 1, 2024 Within
90 days of incorporation
- After
January 1, 2025 Within
30 days of incorporation
Note: There are efforts underway to seek exemptions for
certain associations and extend registration deadlines, compliance remains
paramount for those affected.
In essence, the Corporate Transparency Act introduces new
regulatory challenges for Miami's community associations, emphasizing
transparency and accountability in corporate governance. Through proactive
measures, including understanding beneficial ownership, adhering to reporting
requirements, and seeking professional guidance, associations can navigate the
compliance landscape effectively, reinforcing trust and integrity within their
communities.
About Author: Liz Kenneally, a seasoned Miami real estate agent, boasts extensive experience in the city's vibrant market. Specializing in sought-after neighborhoods including Coral Gables, Dadeland, Continental Park, East Kendall, Pinecrest, South Miami, and The Falls. Liz is fluent in both English and Spanish, ensuring smooth transactions for her diverse clientele. Contact her at 786-423-3348 or complete the simple EMAIL AGENT form located beside this blog content.