Client Alert: What NYC Co-op and Condo Boards Need to Know About Corporate Transparency Act Exemptions

FinCEN has finalized a rule that permanently exempts most domestic entities from Corporate Transparency Act (CTA) beneficial ownership reporting requirements. As a result, cooperative corporations, condominium-related entities, and other community associations organized in the United States generally are no longer required to file Beneficial Ownership Information (BOI) reports with FinCEN, and their board members, officers, and directors generally are no longer required to provide or update personal beneficial ownership information in connection with those filings.

Who Is Affected?

This exemption generally applies to cooperative corporations, condominium-related entities, and other community associations organized in the U.S., as well as their volunteer board members, officers, directors, and managing agents.

Associations that previously submitted BOI reports should continue to monitor FinCEN guidance concerning information already on file. FinCEN has indicated it intends to remove certain information that is no longer required to be maintained.

Key Takeaways for Co-op and Condo Boards

• Most New York co-op and condominium boards no longer need to file BOI reports with FinCEN.
• Board members, officers, and directors generally are no longer required to provide beneficial personal ownership information under the CTA for domestic associations.
• Associations that have previously filed BOI reports should watch for additional FinCEN guidance regarding historical information already submitted.
• Associations with foreign ownership interests, foreign affiliations, or unusual organizational structures should consult counsel to determine whether any reporting obligations remain.

Questions?

Questions regarding the CTA's impact on a particular cooperative corporation or condominium association may be directed to a qualified New York cooperative and condominium attorney. You may also contact Dean M. Roberts, Esq. at dmroberts@norris-law.com, Michael T. Reilly, Esq. at mtreilly@norris-law.com, or call the firm at (212) 808-0700.