FinCEN makes CTA reporting relief permanent for community associations

The Treasury Department’s FinCEN has finalized a rule that permanently exempts U.S. companies, U.S. persons and community association board members from Corporate Transparency Act reporting. Community Associations Institute says the move is a major win for volunteer leaders, while it continues to back full repeal of the law in Congress.

Why it matters: - The final rule ends a key compliance burden for homeowners associations, condominium associations and housing cooperatives. - Community association board members no longer face federal beneficial ownership reporting requirements under the Corporate Transparency Act. - The change affects millions of volunteer leaders and residents in community associations across the country.

What happened: - The U.S. Treasury Department’s Financial Crimes Enforcement Network finalized a rule that makes permanent an exemption first offered in March 2025. - Community Associations Institute praised the decision after a multi-year campaign involving advocacy, regulatory comments, policymaker outreach and public education. - CAI also filed a federal lawsuit in September 2024 against the U.S. Department of the Treasury over the law’s application to community associations.

The details: - The final rule permanently exempts U.S. companies and U.S. persons, including community association board members, from beneficial ownership information reporting. - U.S. persons who already received FinCEN identifiers do not have to update or correct information previously submitted to FinCEN. - FinCEN plans to delete information it reasonably believes was previously reported by U.S. persons, including data submitted by community association board members. - Certain foreign entities registered to do business in the United States still must report foreign individuals. - CAI says the original reporting regime created compliance and privacy concerns for volunteer board leaders.

Between the lines: - The move narrows the CTA’s reach, but it does not repeal the law itself. - CAI is framing the result as partial relief rather than a final fix. - The organization argues the CTA was designed to target illicit finance, not neighborhood volunteers serving on boards. - The Foundation for Community Association Research estimates 78.1 million Americans live in 373,000 community associations, with more than 2.5 million homeowner volunteers serving on boards and committees. - Those volunteers provide an estimated 102.6 million hours of annual service valued at $3.57 billion.

What’s next: - The final rule takes effect when it is published in the Federal Register. - CAI says it will keep pushing Congress to fully repeal the Corporate Transparency Act. - The group continues to support H.R. 425, the Repealing Big Brother Overreach Act. - CAI says a full repeal would give community associations and their volunteer leaders lasting certainty.

The bottom line: - FinCEN has turned temporary CTA relief into a permanent exemption for U.S. community association board members, but the broader legal fight is still not over. - More information is available on CAI’s Corporate Transparency Act resource page.