Fiscal Responsibility Report: How Director Inaction Increased HOA Compliance Costs
Date: Dec 31 2024 Category: Association Governance / Financial Transparency Summary To comply with new federal regulations, the Radius at Whisman Station HOA Board in Mountain View CA was required to submit specific documentation by October 31, 2024, to secure a discounted administrative rate. While the majority of the Board complied well in advance, Director Patrick Szeto failed to meet the deadline. Despite a subsequent opportunity on November 1 to rectify the delay and potentially save the Association money, the required action was not taken, resulting in unnecessary additional costs to the HOA. The Federal Requirement: Corporate Transparency Act In September 2024, the HOA management company notified the Board of the Corporate Transparency Act (CTA) , a federal law requiring Homeowners Associations to report "beneficial ownership" information to the U.S. Department of the Treasury. Compliance is mandatory, and non-compliance carries significant civil and criminal penal...