Does your housing cooperative have fewer than 20 employees and budgets under $5 million? If so, the CTA applies to you!
The Corporate Transparency Act (CTA) is a U.S. federal law enacted on January 1, 2021, as part of the National Defense Authorization Act. It aims to increase transparency in corporate ownership to combat money laundering, terrorist financing, and other financial crimes.
Reporting Deadline: Entities must report their beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN) at the time of formation or registration and update the information regularly, especially if there are changes.
The Corporate Transparency Act (CTA) requires that by January 1, 2025, housing cooperatives with fewer than 20 employees and budgets under $5 million must report the names, addresses and IDs of their Board of Directors as well as update any changes within 30 days or face severe civil and criminal penalties. Noncompliance could result in fines of $500 per day and criminal penalties of $10,000 and up to 2 years in prison.
We are calling on all housing cooperatives to contact your Senators today to ask lawmakers to:
- extend to 2026 the requirement to comply with the CTA by supporting S.3625; and
- to pass legislation to exempt housing cooperatives from the Corporate Transparency Act.
Take action and urge your congressional representatives to advocate for protecting housing cooperatives.
Go to Democracy.io, type in your name and address and you will be directed to links to e-mail your senators and representative and send them the following message:
Dear Representative’s Name,
We are homeowners and do not engage in terrorist activity. Please extend the Corporate Transparency Act (CTA) for one year by passing S.3625 and introduce legislation to exempt housing cooperatives from the onerous reporting requirements of the CTA.
Sincerely,
Your Name
Find your Members of Congress and send your messages today!
Please do it today and ask your members to send e-mails too!
