DOES YOUR ASSOCIATION HAVE A COLLECTION POLICY?
Why It's Important to Have One and Keep it Updated.
Corporate Transparency Act (“CTA”) took effect on January 1, 2024, and it requires most legally formed entities (Corporations, LLCs, etc.), including incorporated Associations, to file with the federal government what is known as a Beneficial Ownership Information Report (“BOI Report”). The filing deadline for Associations formed prior to 2024 is December 31, 2024, while the filing deadline for Associations formed in 2024 is 90 days from the date of formation. On an ongoing basis, if previously reported information changes, an entirely new report must be filed within 30 days of the change occurring.
What is the Corporate Transparency Act?
The Corporate Transparency Act (CTA), signed into law in late 2020, is designed to combat financial crimes such as money laundering, tax evasion, and fraud by increasing the transparency of corporate ownership. While this legislation targets large corporations and LLCs, its implications have an impact on Homeowners’ and Condominium Associations as well.
To fill the housing gap, and earn extra income, many homeowners are willing to rent their homes out. Now is a great time for your association to review the governing documents and notify owners of any short-term rental restrictions that your association may have.
As an Association, you should consider adopting a Collection Policy if you haven't done so already. Collection Policies assist in preventing delinquencies from progressing without consequence. A Collection Policy allows for a better understanding for both Board Members and owners of why paying assessments on-time is important.
Lenders are more cautious to approve a loan prior to a buyer's purchase of a condo unit or the purchase of a home in a homeowners' association (HOA) because ownership and decision making are shared between property owners, which equates to more risk for the lender. To aid in their decision-making process, lenders may utilize a “lender questionnaire” that a property management company or community association must complete and sign. The questionnaire is used to gather additional information about the community association. Examples of items covered on a questionnaire include: what fees or special assessments are charged to unit owners, building insurance utilized, ongoing projects, etc.
The Ohio Legislature passed new legislation amending ORC 5311, the Ohio Condominium Act, and ORC 5312, the Planned Community Act. Many of the changes were non-substantive, but there are a few significant changes, some following the decisions of courts around Ohio and others clarifying the previous law.
Sharing Email Accounts: No Big Deal -or- Disaster?
Effective Monday, March 23, 2020, at 11:59pm, the Director of the Ohio Dept. of Health issued a "Stay at Home Order". This Order currently lasts until April 6, 2020, at 11:59pm. The Director's order includes the entire state. Unless you work for an essential business or are doing an essential activity, you should stay home. "The intent of this Order is to ensure that the maximum number of people self-isolate in their places of residence to the maximum extent feasible..."
DOES YOUR ASSOCIATION HAVE A COLLECTION POLICY?
Why It's Important to Have One and Keep it Updated.
1300 E 9th St, Suite 1520
Cleveland, OH 44114
Ph: 216-771-2600
Fx: 216-830-8939
