On January 7, 2025, the Texas Court in Smith v. United States Department of the Treasury, No. 6:24-cv-336-JDK (E.D. Texas, Tyler Div. 2025), signed a nationwide injunction and issued an opinion stating that the CTA was likely unconstitutional in its application. The Department of Justice filed an appeal with the Court requesting emergency relief from the nationwide injunction. On February 18, 2025, the Court agreed to stay its January 7, 2025, order until the appeal is completed. Given this decision, FinCEN’s regulations implementing the BOI reporting requirements of the CTA are no longer stayed. Thus, subject to any applicable court orders, BOI reporting is now mandatory, but FinCEN is providing additional time for companies to report. The deadline for compliance is extended to March 21, 2025, which comes days before the Fifth Circuit hears oral argument on the constitutionality of the CTA in the Texas Top Cop Shop, Inc., case.

Faced with the increasing cost of housing, many people see housing cooperatives as an alternative to traditional home ownership, and as housing cooperatives see an increase in membership applications, they need to ensure that these applications follow state and federal guidelines. Having attorneys who specialize in housing cooperatives draft membership applications may help cooperatives avoid potential legal issues down the road. Although cooperatives may have some differences in their membership applications, they do share some commonalities.

In response to the number of evictions for non-payment after the COVID lockdowns, HUD issued an interim rule requiring certain housing program recipients to issue a 30-day notice for non-payment instead of the 14-day notice of non-payment. The interim rule became a proposed rule published on December 1, 2023 and was to remain in effect until such time as HUD issued a final rule. On December 13, 2024, HUD released its final rule regarding the provision of a 30-day notice for non-payment of monthly housing charges for select federally subsidized projects with an effective date of January 13, 2025 despite its required application in the interim.

Last spring, we provided ideas to Board of Directors on how to keep engaged with your membership during the first wave of COVID-19 cases. As we are navigating through another COVID-19 surge, we would like to provide you with another fun guide of ideas to help your membership continue to stay connected. As a Board of Directors, it is important that you not only keep your membership abreast of cooperative issues, but also continue to keep the morale of the membership up.

Is your Cooperative in compliance with changes in the application process mandated by Cook County? If your current application process considers criminal convictions along with income, prior occupancy, and other qualification matters, then that process violates Cook County law according to the Just Housing Amendment to the Human Rights Ordinance

A nationwide preliminary injunctive order issued by Judge Amos Mazzant on December 3rd, 2024 in the Eastern District of Texas (ECF No. 24), that applies to all reporting companies, including all housing cooperatives nationwide was appealed by the Federal Government. In its Emergency Motion for Stay Pending Appeal, the Government pleaded with the Fifth Circuit Court to grant an immediate stay of the nationwide injunction. On December 23, 2024, the Fifth Circuit Court Motions Panel granted the Government’s request and entered an Order staying the District Court’s nationwide injunction.