In the On-Again Off-Again Saga of the CTA Reporting Requirements

For those of you keeping score:

Dec 3, 2024: the Texas District Court issued the Nationwide Injunction on the enforcement of the CTA (no enforcement).

Dec 23, 2024: the 5th Circuit issued an order staying the Nationwide Injunction (enforcement is on).

Dec 26, 2024: the full panel of the 5th Circuit issued an order vacating the stay (meaning that the injunction is now in effect, no enforcement). The judges also chastised the previous court for jerking people around when there were only a few working days remaining in the year.

Jan 1, 2025: the federal government filed a motion with the US Supreme Court to stay the Texas District Court's injunction, because of course they did. ("Your Honors, we totally want to enforce the CTA!")

Jan 10, 2025: CAI filed an amicus brief with the Supreme Court.

An amicus brief is one filed by an interested third party when the court case in question has broader relevance beyond the two parties who were originally involved. In this case, the brief is worth reading since it spells out clearly why CAI believes that community associations were never intended to be subject to the CTA. It also states that irreparable harm will be done to organizations that rely on volunteers and that the penalties imposed by the CTA are wildly disproportionate for unpaid volunteers.

I also appreciate the sentence on the bottom of page 3 that hints at a possible explanation of the federal government's continued unwillingness to grant community associations a waiver from the CTA:

"This could be because they recognize that residents in community associations make up 30% of the United States population and because an underlying goal of the Government may well be to create as large of a facial recognition database as possible."

I just love snark and shade, and lawyer shade is the best shade.

For once I'm happy about the Big Money interests that are driving the homeowner association bus. They can ignore howling homeowners. They're less likely to ignore the people with money - and these folks will complain if people don't want to live in these communities.

Local municipalities and courts will also howl if these communities go into receivership, or if board-less communities just run things as best they can, laws be damned.

Sometimes the brown stuff needs to hit the fan first to get people's attention...

Even if courts rule that it's unconstitutional and contrary to prior legislation?

Me, I'm selfish.

I'm old enough to understand that I will become increasingly unable to handle exterior maintenance and will live in condos until they haul me off to Ye Olde Folkes' Home. It's in my best interest that such communities continue to function well and not end up in receivership.

I also understand that I'm too old to survive a couple years in prison.

I'm also unwilling to sacrifice myself for a law that's unlikely to achieve its stated purpose.

No, they don't actually.

I'm currently waging a one-person campaign against the widespread, mistaken belief that keeping assessments low will also keep expenses low. It does in the short run, but actually increases expenses in the long run.

The trouble is that people want to believe it. It serves their short term interests, as they see them. So you can show them the math until the cows come home, and they won't get it - because they don't want to get it.

Until the Supreme Court acts on the government's motion to stay the injunction on enforcement, then the injunction remains in effect (ie. the government may not enforce the reporting requirement of the CTA). This is basically "Who's on First?", with civil and criminal penalties attached. Ain't we got fun?

The best thing to do is to stay informed. I joined Community Associations Institute in order to keep up with latest, because our community's attorney is not keeping us informed.

It's back on. File by March 21, 2025.

See new thread:

https://www.hoatalk.com/Forum/tabid/55/forumid/1/postid/379075/view/topic/Default.aspx Subject: Corporate Transparency Act is Back - File by March 21, 2025