CAI Board of Trustees Approves CTA Lawsuit

By Anna Mancino

The Community Associations Institute (“CAI”) is joining the fray and challenging the Corporate Transparency Act (“CTA”). On January 1, 2024, the CTA’s new beneficial owner information (“BOI”) reporting requirements went into effect for corporations and other entities created through a filing with a Secretary of State or similar office pursuant to state law. In June 2024, the CAI Board of Trustees (“Board”) approved the filing of a lawsuit challenging the application of the reporting requirements to community associations. The suit focuses on the significant burdens the CTA’s reporting requirements place on associations’ volunteer boards and the adverse impacts on volunteerism that will likely result because of the requirements. CAI is following in the steps of other organizations across the country who have filed similar lawsuits on behalf of their members. Should CAI succeed in its lawsuit, its members may be exempt from complying with the reporting requirements of the CTA.

The suit is expected to be filed this summer. CAI will provide updates to its members throughout the process. For more information visit:  www.caionline.org/CTA