Understanding the Latest Legislation Impacting HOAs, POAs, and Condos
In 2024, several significant legislative changes have been enacted that impact homeowners’ associations (HOAs), property owners’ associations (POAs), and condominium associations across the United States. These changes aim to enhance governance, transparency, and safety within community associations. Here’s a breakdown of the most notable updates:
Corporate Transparency Act (CTA)
One of the most impactful pieces of legislation is the Corporate Transparency Act (CTA), which requires many HOAs to file Beneficial Ownership Information (BOI) with the Financial Crimes Enforcement Network (FinCEN). This federal law, part of the Anti-Money Laundering Act of 2021, aims to increase governmental awareness of who owns and operates businesses, including HOAs, to combat money laundering, financial fraud, and terrorism financing. Failure to comply by January 1, 2025, could result in daily fines of $5001.
Florida’s Homeowners’ Association Act Updates
Florida has seen significant updates to its Homeowners’ Association Act through House Bill 1203. This bill affects various aspects of HOA operations, including:
- New board member requirements
- Updated website requirements
- Changes to financial reporting
- Records retention and accessibility
- Fines and suspensions
- Voting fraud prevention23.
Condominium Association Regulations
Florida’s House Bill 1021 brings regulatory changes specific to condominium associations. This bill focuses on enhancing transparency and education requirements, including mandatory board education and other high-level topics2.
Impact on POAs
While much of the recent legislation focuses on HOAs and condos, POAs are also affected. For instance, the Corporate Transparency Act applies to POAs as well, requiring them to file BOI with FinCEN.
Conclusion
Staying informed about these legislative changes is crucial for board members and residents of community associations. These laws are designed to improve governance, transparency, and safety, ensuring that community associations operate more effectively and responsibly. If you have any questions or need assistance with compliance, feel free to reach out to your association’s management team.
