What is the Corporate Transparency Act?
The Corporate Transparency Act, or CTA, is a federal law that took effect in 2024 to fight money laundering and terrorism financing. It originally required certain organizations, including many HOAs structured as corporations, to report information about who controls them to the federal government, a requirement that has since been rolled back for every entity formed in the US.
Why does the Corporate Transparency Act matter?
This law is the reason BOI reporting existed in the first place, and it briefly put volunteer boards at risk of a filing obligation nobody expected a neighborhood association to carry. FinCEN reversed course with an interim rule in March 2025 that exempted every US-formed entity, then made that exemption permanent through a final rule effective August 14, 2026, so an HOA organized in the US no longer has a BOI obligation under the CTA.
When You’ll Run Into This
This tends to surface the same way BOI reporting does, when a board’s accountant or attorney flags it, often well after the association should have already filed. It’s worth checking your HOA’s status now.
