A homeowners association (HOA) that qualifies as a reporting company and does not meet any exemptions, must report its beneficial owner(s). A beneficial owner is any individual who either directly or indirectly: (1) exercises substantial control over the reporting company, or (2) owns or controls at least 25 percent of the ownership interests of the reporting company.
There may be cases where no individuals own or control at least 25 percent of an HOA's ownership interests. However, FinCEN expects that at least one individual exercises substantial control over each reporting company. Individuals are considered to exercise substantial control over the HOA if they:
- are a senior officer;
- have the authority to appoint or remove certain officers or a majority of directors of the HOA;
- are key decision-makers; or
- have any other form of substantial control over the HOA.