A bubbling legal battle over a federal anti-fraud law has sparked worries from homeowners association advocates that they could be newly buried in bureaucratic red tape—and face increased costs.
Originally designed to deter fraud and abuse in businesses entities, the Corporate Transparency Act imposes new reporting requirements on many business entities, including condo associations and HOAs. But many groups are now challenging the law’s key requirement to disclose ownership of corporate entities.
After a series of courts upheld the law, a group of business entities led by the National Small Business Association are asking the U.S. Supreme Court to weigh in to overturn the law. They argue it’s unconstitutional. And they’re joined by several HOA groups, which are concerned that costs will increase.