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CORPORATE TRANSPARENCY
UPDATE
 On February 17 the Treasury Department persuaded a U.S. Court to stay the nationwide preliminary injunction against filing beneficial ownership information required by the Corporate Transparency Act.
Two days later the Treasury Department reinstated reporting requirements with a new deadline of March 21, 2025. It means HOA boards are back on the hook to file their information with the Financial Crimes Enforcement Network (FinCEN).
Board members are required to provide (i) their date of birth, (ii) their residential or business address, (iii) a unique identification number from an acceptable document (e.g., passport, driver’s license) along with an image of the document, (iv) the legal name of their association, (v) the physical address of their association, and (vi) the association’s tax ID number.
The CTA mess spurred action in Congress. Rep. Nunn (R-IA) introduced H.R. 736 and Sen. Scott (R-SC) introduced S. 505 to delay CTA's reporting requirements. On February 10, H.R. 736 passed by a vote of 408-0 and was sent to the Senate Banking, Housing, and Urban Affairs Committee for consideration. Our firm joins CAI in urging everyone to ask the Senate to immediately pass S. 505. Click here to send a message to Senators.
WORKPLACE
VIOLENCE PREVENTION
 Sacramento thinks employers need more regulation. In 2023 it passed SB 553, requiring employers to (i) adopt a workplace violence prevention plan, (ii) conduct workplace violence hazard inspections (whatever that means), (iii) annually train employees on how not to be violent, and (iv) maintain an incident log along with other record-keeping requirements.
It applies to any workspace accessible to the public, such as a store, or a workspace not accessible to the public (HOAs) with 10 or more employees. The law will be enforced by the California Occupational Health and Safety Administration (Cal/OSHA) and violations include civil penalties and misdemeanors.
We have been informed that OSHA is knocking on doors wanting to know if HOAs have adopted and implemented the new workplace violence requirements. It never ends.
WILDFIRE DEVASTATION
AND INSURANCE FALLOUT
 Last month wildfires destroyed 16,240 homes and commercial properties including condominium associations and planned developments. Loses are estimated between $95 billion and $164 billion, with insured losses estimated at $75 billion.
Associations statewide already had trouble finding insurance. The Los Angeles fires will make it even harder, and premiums will increase significantly.
Join industry experts Adrian Adams from ADAMS|STIRLING, and Michael Berg and Terri Guest from LaBarre Oksnee Insurance as they discuss:
- The insurance market and what the future holds.
- Board responsibilities and potential liability when insurance is not available or too expensive.
- Special assessments when buying insurance.
- Amending CC&Rs to give flexibility when buying insurance.
- Board responsibility in hardening their association against wildfires.
- CC&R damage and destruction provisions--should they be amended?
The webinar will held Tuesday, March 4, from 12:00 noon to 1 p.m.
HIRING
EXPERIENCED ATTORNEYS
We are looking for experienced HOA attorneys for our offices in San Diego, Los Angeles and Northern California. Learn more about us here.
If you are interested, or know someone who may be a good candidate, you can contact Adrian Adams confidentially by email or by phone at (800) 464-2817.
I couldn't resist...If prospective board candidate(s) cannot remember to identify themselves on their personal bio or candidate statements; do you really want them on your board? Let them run anonymously.... -Julian M.
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DISCLAIMER. Our newsletter provides commentary, not legal advice. Boards needing legal advice should have an attorney review the facts and law for their particular situation. We serve as corporate counsel to California associations.
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