March 2024

PRESIDENT’S CORNER Christopher Nicosia, CMCA, AMS, PCAM 2024 CAI-NJ PRESIDENT RCP MANAGEMENT COMPANY, AAMC, AMO

CAI-NJ TEAM

G reetings, CAI-NJ Members! If you are a little superstitious and enjoy nicer weather, Punxsutawney Phil gave us some great news back on February 2nd! The famous marmot from Pennsylvania did not see his shadow…a tell-tale sign that Spring is around the corner (at least according to tradition). The official first day of Spring is March 19th (Vernal equinox), so even though we are seeing more winter precipitation this year than we have in the last several years, Spring is on the way! This month’s issue of Community Trends ® is themed around pets and animals. Please take a little time to peruse the interesting and informative articles written by this month’s authors.

ANGELA KAVANAUGH CHAPTER EXECUTIVE DIRECTOR ANGELA@CAINJ.ORG JACLYN OSKIERKO DIRECTOR, CONFERENCE & EVENTS JACLYN@CAINJ.ORG ROBIN SURGENT DIRECTOR, MEMBERSHIP DEVELOPMENT ROBIN@CAINJ.ORG BROOKE STOPPIELLO-NEVINS COMMUNICATIONS MANAGER BROOKE@CAINJ.ORG

“Community associations represent just over 10% of the impacted entities... and nearly all will have to comply with this new law.”

Each month, I try to focus on an important or interesting topic related to our industry. This month, I would like to dis cuss the Federal Corporate Transparency Act (CTA). The Corporate Transparency

Contact CAI-NJ

ADDRESS CAI-NJ

500 HARDING ROAD FREEHOLD, NJ 07728 PHONE 609-588-0030 FAX 609-588-0040 WEB WWW.CAINJ.ORG EMAIL INFO@CAINJ.ORG

Act (CTA) requires all “beneficial owners” of various corporations and limited liabil ity companies (with very limited exceptions) to register with FinCEN (the Financial Crimes Enforcement Network — a bureau within the US Department of Treasury). The CTA states that all beneficial owners of financial assets (including corporate officers in charge of assets and/or those having decision-making authority over said assets, such as board members of community associations) register with FinCEN and provide the following information through a secure government portal: Name, address, date of birth, and current government photo identification (driver’s license, passport, etc.). This federal regulation requires that all board members as well as reporting entities (which may include management company executives and/or law firms/attorneys/accountants) comply with the CTA or face significant civil and criminal penalties. Civil penalties of $500.00 per day ($182,500/year) may be assessed against both the beneficial owner and the corporate entity. Additionally, potential criminal penalties of up to $10,000.00 and two (2) years imprisonment may be levied for non-compliance. Compliance is currently mandated by December 31, 2024. Nearly 33 million small businesses in the U.S. are impacted by this legislation. Community associations represent just over 10% of the impacted entities (approx imately 350,000 in the U.S.) and nearly all will have to comply with this new law. The Community Associations Institute (CAI National) is actively seeking an extension for associations to comply with the Act. An extension would also pro-

CAI-NJ on Social Media

www.facebook.com/ CAINJCHAPTER

Community Associations Institute - New Jersey Chapter

@cainewjersey

CONTINUES ON PAGE 54

CAI-NJ

5

5

MARCH 2024