Managing Partner
In a recent Brick Underground article, Jim Woods, Managing Partner at Woods Lonergan, provided expert commentary on the current status of the Corporate Transparency Act (CTA) and its implications for co-op and condo boards in New York, Brooklyn and Queens.
This article, highlights the recent legal developments surrounding the CTA:
- On December 3rd, a judge for the Eastern District of Texas prevented the CTA from being enforced nationwide.
- In a surprising twist, a Fifth Circuit panel reversed that decision on December 23rd after the government appealed, temporarily reinstating the CTA with a new deadline.
- As of now, CTA enforcement is once again on hold.
Jim Woods offered clarity on the current situation, stating, “Everything has been stayed, and we know it’s going to be in that position for at least the next three or four months.” His statement reflects the extended period of uncertainty facing boards as they await further legal developments.
The article emphasizes that NYC’s boards and their lawyers are in a waiting game, anticipating the outcome of the scheduled arguments in March or potential intervention by the Supreme Court. While CTA enforcement is paused, Mr.
Woods advises a cautious approach to cooperative and condominium boards in New York. He notes that many of his clients are choosing to wait before complying with the Corporate Transparency Act requirements, given the possibility that the law may not survive in its current form or could be subject to revisions.
Although NYC boards have been granted a temporary reprieve, they should remain prepared for potential implementation. Woods Lonergan stands ready to provide comprehensive guidance on CTA compliance, helping boards navigate these new regulatory uncertainties with confidence and precision.
For a more detailed background on the CTA and its impact on co-op condo board governance requirements, please refer to our firm’s recent blog post: Corporate Transparency Act Update: Court Ruling Impacts NYC Co-Op and Condo Board Compliance.
Our expertise ensures that communities not only meet their legal obligations but also strengthen their governance practices in the process.
For the full article in Brick Underground, written by Celia Young titled please visit “NYC Co-op and Condo Boards Catch a Break as Corporate Transparency Act Faces Legal Limbo,”