The Corporate Transparency Act (CTA) requires that beginning January of 2025, housing cooperatives with fewer than 20 employees and budgets under $5 million must report their beneficial ownership information to the Financial Crimes Enforcement Network (“FinCEN”), including update any changes within 30 days, or face severe civil and criminal penalties with fines set at $500.00 per day. Congress enacted the CTA in 2021 to protect national security and identify those individuals who would use shell companies and other organizations to hide or benefit from ill-gotten gains.
To comply with the CTA, housing cooperatives are required to report private information for each board member to FinCEN. The reported information includes each board member’s full name, date of birth, residential address, and an identifying number from a U.S. driver’s license or passport, along with an image of the U.S. driver’s license or passport. Private information of this nature was not previously required. NAHC strongly opposes the CTA.
We are calling on all housing cooperatives to contact their Members of Congress today to ask lawmakers to extend the requirement to comply with the CTA to 2026 and to introduce legislation opposing housing cooperative inclusion in the Corporate Transparency Act.
Simply go to Democracy.io, type in your name and address and you will be directed to links to e-mail your senators and representative. Send them the message below. Encourage your members to send emails as well.
NAHC is asking for legislation exempting housing cooperatives from the CTA and is working with its lobbyist to have such legislation introduced. To that end, NAHC urges its members to contact their congressional representatives to advocate for an exclusion of housing cooperatives from the CTA.
Take action and urge your congressional representatives to advocate for protecting housing cooperatives.
Dear Representative’s Name,
We are homeowners and do not engage in terrorist or money laundering activity. Please extend the Corporate Transparency Act (CTA) for one year 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!
