Everything Community Associations in Pennsylvania Should Know About 2022 Act 122’s Annual Reporting Regime

By Holly L. Setzler, Esq. & Connor Thomson

On November 3, 2022, former Pennsylvania Governor Tom Wolf signed 2022 Act 122 (“the Act”) into law. The Act repealed Pennsylvania’s every ten-year reporting requirement and replaced it with an annual one. The goal of the Act is to cleanse the Department of State’s “entity roll.” Before the Act was signed into law, Pennsylvania was one of a few states without an annual reporting protocol, which resulted in hundreds of thousands of registered entities no longer in existence being listed as “active.”

Beginning on January 1, 2025, certain registered entities are now required to file an annual report to verify continued existence. Included are domestic non-profit corporations, which typically include community associations (condominium, homeowner, co-operatives). Associations should be prepared to report the following information between January 1, 2025 and June 30, 2025: (1) business name; (2) jurisdiction of formation; (3) registered office address; (4) principal office address; (5) name of at least one governor (i.e., director, member, partner, etc., depending on type of association); (6) names and titles of principal officers, if any; and (7) entity number issued by Pennsylvania’s Department of State. No financial information is required. There is no fee for community associations and other domestic non-profit corporations to file the information.

If a community association files an annual report after January 6, 2025, the Department of State recommends that it does so online. Annual reports filed online will be automatically approved. Online filers will see status updates in real time because the form will populate with any details currently on file. Online filers will also be able to access their filing within minutes. We note that an online filer must be an authorized signatory pursuant to 15 Pa.C.S.§146(a) as annual reports must be “signed by the entity or association.” If a community association decides to file an annual report online, it should take the following steps:

1. If it is a new user, register an account for Business Filing Services here.
2. Log in here and search for its name under “Business Search.”
3. Click on the “Annual Report” icon.
4. Complete the form and pay via credit card.
5. After the form is processed, a Form and Acknowledgement Letter will be available for immediate download. An e-mail with instructions on how to retrieve the filing under “My Work Queue” will also be sent. We recommend that you save both.

For step-by-step instructions with screenshots, you may download this guide.

It is imperative that associations file an annual report by June 30, 2025. Failure to file each year will subject an association to administrative dissolution, termination or cancellation and loss of protection of its name. Owing to the significant change to an annual filing requirement, the Department of State has instituted a “transition period” until the 2027 calendar year. This means penalties will be imposed only if an annual report is not filed by the 2027 calendar year. Notwithstanding the “transition period,” we recommend that community associations file an annual report by June 30, 2025.

Holly L. Setzler is a partner at Gawthrop Greenwood, PC where she focuses her practice in real estate and community association law. She provides legal counsel to homeowner and condominium associations, developers, business clients, county airports, municipalities and real estate-related entities across Chester County, Delaware County, Montgomery County and Berks County. Setzler was the attorney who achieved a landmark victory in the Mountain View Condominium v. Bomersbach case before the Pennsylvania Commonwealth Court. At the time, the result ensured homeowner and condominium associations could recoup expended legal fees when enforcing the governing documents of a community. Thereafter, Pennsylvania’s laws (and other jurisdictions nationwide) were amended to accommodate the provision. Holly has also represented association insurance carriers as defense counsel when the issues are association related and complex. For more information, contact Holly at hsetzler@gawthrop.com or 610-696-8225.