UPDATE: 12/30/2024:
Alert: Alert [December 27, 2024]: Impact of Ongoing Litigation – Deadline Stay – Voluntary Submission Only
In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.
Read more at: https://fincen.gov/boi
Introduction:
As a property management company serving Philadelphia, Bucks, and Montgomery counties, Onyx Capital Management is committed to keeping Homeowners Associations (HOAs) and property owners informed about new regulations that impact their responsibilities. One such important regulation is the FINCEN Beneficial Ownership Information (BOI) rule.
In this blog post, we’ll break down what the FINCEN BOI ruling is, how it affects HOA board members, and what needs to be done to comply with the filing requirements before the deadline. We’ll also explain how Onyx Capital Management can support your HOA board to ensure you meet the necessary filing obligations on time.
What is the FINCEN BOI Ruling?
The Financial Crimes Enforcement Network (FINCEN), a division of the U.S. Department of the Treasury, recently implemented new rules under the Corporate Transparency Act (CTA) aimed at increasing transparency in business ownership. These regulations require certain entities—including HOAs that operate as legal entities—to disclose Beneficial Ownership Information (BOI).
Essentially, BOI refers to the individuals who ultimately own or control an entity. For most HOAs, this will typically mean the members of the HOA Board who are responsible for decision-making and the governance of the community.
Failure to file before the deadline may result in a $591-per-day fine, up to a total of $10,000 for your organization.
Key Details of the FINCEN BOI Requirements for HOA Board Members
Who Needs to File?
All HOA entities that are incorporated or registered as legal entities under state law are subject to these rules. This includes most HOAs, condominium associations, and similar entities.
Who is Considered a "Beneficial Owner"?
The HOA board members (or other key individuals responsible for managing the HOA) are considered beneficial owners. This includes those who:
Exercise significant control over the HOA.
Own or control more than 25% of the HOA entity.
What Needs to Be Filed?
Personal information about each board member, such as full name, date of birth, address, and identification numbers (such as passport or driver’s license).
This information must be submitted to FINCEN through the BOI reporting system.
FINCEN Deadline:
The initial filing deadline is January 1, 2025, for new entities formed after January 1, 2024. UPDATE:
Existing entities must submit their first report by January 1, 2025.
Keep in mind that failing to comply with the reporting requirements could result in penalties or fines, so timely filing is critical.
How Onyx Capital Management Can Help HOA Board Members
At Onyx Capital Management, we understand the complexities of property management and HOA governance. The new FINCEN BOI filing requirements might seem daunting, but we are here to help.
Here’s how we can assist:
Guidance on Filing: We’ll explain the exact steps HOA board members need to take to comply with the FINCEN regulations. We’ll help you determine who needs to be reported and ensure you gather the necessary personal information.
Timely Submission: With the January 1, 2025 deadline fast approaching, we’ll help ensure your HOA’s BOI filing is submitted on time to avoid any penalties.
Document Collection Assistance: We’ll work with your HOA board to collect and organize the required personal information for the BOI submission, reducing the administrative burden on your team.
Ongoing Support: As regulations evolve, Onyx Capital Management will keep your HOA informed of any updates to ensure continued compliance with all local, state, and federal regulations.
Why Is This Important for HOA Board Members?
The new FINCEN BOI rule enhances transparency and helps prevent illicit activities such as money laundering. While the reporting may feel like an additional burden, it’s an important step in ensuring that your HOA is in good standing with federal regulations.
For HOA board members, meeting this compliance requirement is part of fulfilling their fiduciary duties to the community and ensuring smooth governance. By working with a trusted property management partner like Onyx Capital Management, you can focus on what truly matters—your community—while we handle the regulatory details.
Conclusion:
The new FINCEN BOI filing requirements represent a significant shift in the way Homeowners Associations (HOAs) must report ownership and control information. As an HOA board member, it’s critical that you understand these new requirements and take action before the NEW filing deadline of January 13, 2025 for companies formed before 2024.Onyx Capital Management is here to guide you through this process, ensuring your HOA remains compliant and in good standing with federal law. We’re here to handle the details so your board can focus on managing the community.
Contact Onyx Capital Management is reaching out to all of our homeowners that serve on executive boards with vital information to help navigate through the filing process.
If your management company has not reached out to you, please consider making the switch to our team in 2025.
To learn more about how we can assist with the BOI filing process and what we can do for your HOA moving forward, please call us at (215) 953-1414 today.
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