On Sept. 10, CAI filed a lawsuit against the United States Department of Treasury challenging the application of the Corporate Transparency Act. We believe the application of the Corporate Transparency Act to community associations is an overreach and potentially unconstitutional, and we will continue to work to protect the interests of our members and communities nationwide.
Community Associations Institute filed an amicus brief earlier this week in the United States Court of Appeals for the 11th Circuit challenging the constitutionality of the Corporate Transparency Act. Enacted by Congress in 2021, the act requires businesses, including community associations, to register with the Treasury Department’s Financial Crimes Enforcement Network. CAI supports the act’s intent to bolster transparency and counter money laundering and terrorist financing efforts but believes it should not apply to community associations.
Since the 1970s, community associations have been a popular housing choice for people around the world—and the number of new condominium communities and homeowners associations is expected to increase by more than 3,000 in 2024, according to projections by the Foundation for Community Association Research, an affiliate organization of Community Associations Institute (CAI).
Freddie Mac took a giant step toward transparency last week when it announced sweeping changes to its condominium and housing cooperative financing system. The government-sponsored enterprise that underwrites mortgages is introducing a tool that indicates whether a community is “certified” for financing or “not eligible”—and providing guidance that explains why a community may not be eligible.
In July, Fannie Mae and Freddie Mac released updates to project eligibility standards for condominiums and housing cooperatives. It is critically important for condominium and housing cooperative projects to have access to loans that will meet Fannie Mae and Freddie Mac qualifications. CAI continues to provide specific feedback regarding the requirements.
