NEW YORK AND BEYOND
In today's shrinking world, many issues that CNYC pursues are also
important to cooperatives or condominiums outside of New York. And
when we seek national legislation or regulations, it is helpful to have
broad support. Many CNYC members support the National Association of
Housing Cooperatives (NAHC), the Washington, DC based organization
that brings co-op issues to Congress or to Federal agencies (see page
15). Similarly, CNYC's condominium members or the professionals who
serve them are often members of the Community Associations Institute,
a parallel organization for condominiums and homeowner associations.
The nationwide memberships of NAHC and CAI can bring diverse grass
roots support for our goals. Following are three major issues important to
us here in New York, but also important nationally.
FEMA GRANTS FOR COOPERATIVES AND CONDOMINIUMS
After tropical storm Sandy, we learned to our dismay that the Federal Emergency
Management Agency (FEMA) can provide grants ONLY to individuals for
the restoration of homes devastated by disaster. Co-op shareholders and condo
unit owners received FEMA grants to restore the inside of their apartments, but
the buildings in which these apartments were located were NOT eligible for FEMA
grants to replace destroyed boilers, or electrical wiring eroded by salt water, or
roofs torn off by the storm. In Congress, legislation has been passed requiring
FEMA to explore this issue and suggest remedies. In addition, Representative
Steve Israel has legislation to add cooperative corporations and condominium
associations to those entities that are eligible for FEMA grants.
REVERSE MORTGAGES FOR COOPERATIVES
Reverse mortgages, properly used, can provide funds to enable older seniors
in houses or in condominiums to live on in their homes, which might otherwise
have become unaffordable to them. Several years ago, there were companies
that made reverse mortgages to shareholders of cooperative apartments, but
these companies no longer exist, and many seniors are being forced to sell the
cooperatives in order to have funds for their final years. In 2000, Congress has
passed legislation authorizing reverse mortgage in housing cooperatives, but
most lenders are reluctant to make these long term loans if they cannot then sell
the loans into the secondary market. HUD was charged with writing regulations
for reverse mortgages in housing cooperatives. These regulation would establish
parameters for saleable loans, and would likely be the necessary catalyst for coop
reverse mortgages. Despite the passage of many years, no regulations appear
to be forthcoming from HUD. CNYC and NAHC are collecting brief accounts from
individuals who need reverse mortgages to stay on in their cooperatives. Please
send your story to info@CNYC.coop.
VETERANS BENEFITS TO BUY INTO COOPERATIVES
The US thanks its veterans for their service by providing low interest loans
when they wish to purchase homes. Homes in houses or in condominiums, that
is, because the Veterans Administration does not help veterans who wanted to
make their homes in cooperatives (this despite the fact that the nation's most
successful affordable housing program ever was the Section 213 program of the
1950s that created cooperative housing nationwide for veterans returning from
World War II and the Korean War). When Representative Carolyn Maloney went
to Congress, one of her goals was to rectify this situation, "A home is a home is a
home," she insisted, But even when her legislation was finally enacted in 2006,
the Veterans Administration did not publicize the opportunity to veterans and it
further encumbered the legislation with restrictions including prohibiting the purchase
of homes in limited equity cooperatives (precisely what those Section 213
cooperatives were!!!). Congress member Maloney has new legislation to make
eligibility permanent and to eliminate past restrictions.