Barsalou & Associates, P.L.L.C. – 2024/08/23 04:53:26

Happy Holidays from Barsalou & Associates

2025-01-07T21:40:12Z

Happy Holidays from Barsalou & Associates. Click here to read our holiday newsletter!

Important Update on Corporate Transparency Act (CTA) Compliance and Reporting Obligations

2025-01-07T21:32:33Z

Important Update on Corporate Transparency Act (CTA) Compliance and Reporting Obligations

We want to share an important update regarding the reporting requirements for beneficial ownership information as outlined under the Corporate Transparency Act (CTA). On December 3, 2024, the U.S. District Court for the Eastern District of Texas, in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al., No. 4:24-cv-00478 (E.D. Tex.), issued a preliminary injunction blocking the enforcement of these reporting requirements. On December 5, 2024, the US Dept. of Justice filed a notice of appeal in the case. While this litigation is ongoing, the Financial Crimes Enforcement Network (FinCEN) has stated that it will comply with the court’s order for as long as it remains in effect. What This Means for HOAs:

No Current Obligation: Reporting companies are not required to file their beneficial ownership information with FinCEN at this time.

No Liability: Companies will not be subject to penalties or liability for failing to submit their reports while the preliminary injunction is in place.

Voluntary Submission: Reporting companies may still choose to voluntarily submit beneficial ownership information reports, should they wish to do so.

We are closely monitoring this situation and will keep you informed of any significant developments, including the potential for changes in compliance deadlines or additional legal proceedings. If you have any questions about how this may impact your HOA, please don’t hesitate to reach out to our office. We’re here to help.

October Newsletter – Corporate Transparency Act

2024-10-09T12:33:09Z

Your HOA’s Responsibilities under the Corporate Transparency Act: What You Need to Know Before January 1st

Dear Valued Clients & Friends,

As you may know, the Corporate Transparency Act (CTA) introduces requirements for corporations, including Homeowners’ Associations (HOAs), to file Beneficial Ownership Information (BOI) with the Financial Crimes Enforcement Network (FinCEN) by January 1, 2025. But what does this mean for your Board?

At Barsalou & Associates, we’ve received numerous questions about the CTA’s impact on HOAs, and we’re here to guide you through the process.

What is the CTA and Why Does it Matter for HOAs?

The CTA was designed to combat illicit activity such as money laundering and terrorism financing by requiring entities, including HOAs, to submit information to FinCEN.

Key Requirements for HOAs:

Reporting of Beneficial Owners: HOAs must report personal details for individuals who exercise substantial control over the HOA. Our interpretation is that this includes directors of the Board.
Confidential Database: The BOI information is required under law to be kept in a confidential, non-public database accessible only to authorized government agencies.

Current Status of the CTA for HOAs

The Community Associations Institute (CAI) has filed a lawsuit seeking relief for community associations and challenging whether the CTA applies to HOAs. Most importantly, the lawsuit seeks a declaration that the CTA does not apply to HOAs.

While this legal battle unfolds, the CTA remains in effect, and your HOA is still required to comply by the January 1, 2025 deadline unless a court rules otherwise.

"We learned from the National Small Business Association (NSBA) lawsuit that “association standing” protects all members of the organization in the lawsuit. If CAI’s lawsuit is successful in exempting community associations from the Corporate Transparency Act, it is very possible the exemption will only apply to community associations that are members of CAI. " - CAI

More Information

Steps Your Board Should Take Now

To ensure compliance, we recommend taking the following steps:

Determine Whether Your HOA is a Reporting Company: While the interpretation has been that the act generally applies to HOAs, each HOAs governing documents should be reviewed to ensure it qualifies as a reporting entity.
Identify Beneficial Owners: Gather the necessary information for the Association and directors of the Board, including the personal details of those who have substantial control over the HOA.
File the BOI with FinCEN: Prepare to submit the required information by January 1, 2025.

What You Must Report:

Full Legal Name
Date of Birth
Complete Residential Address
Unique identifying number and issuing jurisdiction from, and image of, one of the following non-expired documents: (U.S. passport, driver's license, or identification document issued by a state, local government, or tribe)

Our Commitment to Supporting HOAs

Navigating the CTA can be complex, but Barsalou & Associates is here to assist you at every step. We specialize in HOA representation and are monitoring the developments of the CAI lawsuit closely. We will continue to keep you informed of any changes that may affect your filing requirements.

For tailored guidance on how to comply with the CTA, or if you have any questions, please don’t hesitate to contact us.

HOA Collections, Enforcement & Compliance since 1981

BOARD CERTIFIED POA LAW

Residential Real Estate

Texas Board of Legal Specialization

Broken Windows and Broken Deed Restrictions

2026-05-12T09:27:26Z

By W. Austin Barsalou, Barsalou & Associates, P.L.L.C

Imagine driving through an unfamiliar neighborhood, and turning onto a street to find cars on blocks, graffiti on houses, litter and garbage everywhere and broken windows in abandoned houses. Try to visualize this street scene and feel your reaction to it. Your most immediate impression is not just that the street is unattractive and needs to be cleaned up. No, your first thought is that you are not safe because the street’s lawless appearance is warning you of danger. Writing in 1982 in The Atlantic magazine article entitled Broken Windows, George L. Kelling and James Q. Wilson proposed their theory that smaller examples of disorder and antisocial behavior such as broken windows lead to more serious criminal behavior. The authors introduced the concept this way: Consider a building with a few broken windows. If the windows are not repaired, the tendency is for vandals to break a few more windows. Eventually, they may even break into the building, and if it's unoccupied, perhaps become squatters or light fires inside. Or consider a pavement. Some litter accumulates. Soon, more litter accumulates. Eventually, people even start leaving bags of refuse from take-out restaurants there or even break into cars. According to the broken windows theory, a relatively minor problem such as a building with one or two unrepaired broken windows can lead to more vandalism, and eventually serious criminal behavior. A neighborhood with poor maintenance of its properties can produce higher crime rates and encourage criminals to be bolder, believing that nobody cares or will do anything about it. Since the theory was first suggested in 1982, many studies have found a relationship between disorder and antisocial behavior. Mayor Rudy Giuliani attributed police action based on the theory to the successful clean-up of New York City in the mid-1980s. The city started an aggressive campaign against graffiti and developed a zero tolerance policy towards public drinking, subway fare evasion, vandalism and the “squeegee men” (who washed the windshields of cars stopped at traffic lights and then demanded payment.) However, there has also been substantial debate as to the broken windows theory and other studies suggest there is only a correlation between the neighborhood environment and increased crime and not a causative relationship. So how does this discussion relate to community associations? Deed restrictions as a form of land use control only work when the majority of homeowners voluntarily maintain their properties and follow the rules. Allowing a neighborhood to deteriorate lowers property values, discourages investment and creates a downward spiral where unmanaged violations spread to create worse violations. Applying the broken windows theory to a homeowners association, when there are a substantial number of obvious violations in a community, people may conclude that there are no rules anymore and act accordingly. If one violation encourages another violation and if smaller violations lead to bigger violations, the failure to fully enforce the restrictions can result in significant problems for an association. One of those problems is the claim of waiver, which can be a serious obstacle to deed restriction enforcement. This defense has been found by Texas courts when there are so many violations in a neighborhood as to lead the average observer to reasonably conclude that the restrictions had been abandoned and were no longer a benefit to the neighborhood. Courts look at the number, nature and severity of the violations and determine if the violations are extensive enough to be considered waived or abandoned. Not dealing with your deed restriction violations early and consistently increases the difficulty of dealing with them later. The twin values of a deed restricted neighborhood -- protecting property values and preserving the quality of life in the community -- are only accomplished by the regular enforcement of deed restrictions. So, in a very real sense, not dealing with your broken windows today can lead to broken deed restrictions in the future.

Austin Barsalou has represented community associations for over 30 years and is former Chairman of the Legal Committee of the Greater Houston Chapter of the Community Associations Institute.

January Newsletter – New Year, New Beginnings in January, 2023

2023-02-09T17:56:31Z

New Texas Legislature

The Texas 88th Legislature first convened on January 10th, 2023. In just a few short days, House Representatives introduced hundreds of bills, many of which affect community associations throughout the state. These proposed bills can have a big impact on how associations, managers, and attorneys must operate. We at Barsalou & Associates are closely following these bills for potential legislative updates to keep our clients and fellow industry members informed.

Hitting the Ground Running Our Barsalou & Associates team members participated in the 51st Annual Chevron Houston Marathon, as both volunteers and runners. Congratulations to Jessica for completing the Half Marathon!

Tornadoes Devastate Houston On Tuesday, January 24th, severe weather sent destructive tornadoes through Southeast Houston, causing severe damage to homes and businesses in their path. This devastation to communities will require a large relief effort to help those affected. Linked below is KHOU-11's list of how to help our neighbors impacted by this natural disaster:

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A Night to Remember Barsalou & Associates came out to celebrate the associations, managers, volunteers, and members that make Houston's communities thrive at C.A.I.'s Awards Gala. Congratulations to all of those recognized and awarded at this event!

The Fifteen Subjects That Must Be Handled in Open Meetings

By W. Austin Barsalou

This list, called “The Fifteen” in the HOA industry, apply to homeowners associations in Texas (but not condominiums, which are not subject to Ch 209 of the Property Code). The list specifies the 15 subjects that must be handled in an open meeting:

§ 209.0051(h) ...The board may not, unless done in an open meeting for which prior notice was given to owners under Subsection (e), consider or vote on:

fines;
damage assessments;
initiation of foreclosure actions;
initiation of enforcement actions, excluding temporary restraining orders or violations involving a threat to health or safety;
increases in assessments;
levying of special assessments;
appeals from a denial of architectural control approval;
a suspension of a right of a particular owner before the owner has an opportunity to attend a board meeting to present the owner's position, including any defense, on the issue;
lending or borrowing money;
the adoption or amendment of a dedicatory instrument;
the approval of an annual budget or the approval of an amendment of an annual budget ;
the sale or purchase of real property;
the filling of a vacancy on the board;
the construction of capital improvements other than the repair, replacement, or enhancement of existing capital improvements; or
the election of an officer.

Tex. Prop. Code Ann. § 209.0051 (West)

Barsalou & Associates, PLLC | 4635 Southwest Freeway, Suite 580, Houston, TX 77027

December Newsletter – Happy Holidays from Barsalou & Associates, P.L.L.C.

2026-05-12T09:23:02Z

From all of us here at Barsalou & Associates to you and yours, we wish you a wonderful

Holiday Season and a Happy New Year!

cypress

Celebrating the Season of Giving

cypress springs

missouri city fresno friendswood clearlake webster sugar land rosharon alvin league city texas city the woodlands conroe dayton pinehurst

Here at Barsalou & Associates, we are celebrating this Season of Giving by supporting tomball cypress humble spring katy pearland manvel pasadena baytown atascocita houston Addi's Faith Foundation

Who is Addi's Faith Foundation?

The mission of Addi's Faith Foundation is to support families impacted by childhood cancer, and to fund research to end childhood cancer once and for all.

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Addi's Faith Foundation is committed to providing relief for families of childhood cancer patients in the form of financial assistance, meal deliveries, funding travel for treatment, and so much more. With their contributions, they also fund medical research aiming to improve treatment and ultimately cure many forms of childhood cancers. Additionally, they provide education scholarship opportunities for childhood brain tumor survivors.

Ringing in the New Year

We are thankful to everyone who made 2022 a wonderful year for us here at Barsalou & Associates. Stay connected to keep up to date on big things coming in 2023!

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