VETERANS IN COOPERATIVES

Veterans can now use their low interest loan privileges for the purchase of a home in a cooperative. What an important and timely development! Regulations posted in April on the Veterans' Administration website are the final necessary step in a long campaign to make this possible. Congress member Carolyn Maloney deserves our thanks for taking on this important project.

Before this change, veterans could qualify for special low interest loans to purchase condominiums or single family homes, but if they wished to make their homes in cooperatives, these low interest loans were not available. In New York City, this severely limited the availability of reasonably priced homes. Determined to confirm that "a home is a home is a home!" Ms. Maloney made this issue one of her first priorities upon being elected to Congress. It took more than a decade to accomplish this, but she and Senator Chuck Schumer were finally able to pass the necessary legislation in 2006. Before it could be implemented, regulations had to be promulgated.

These regulations were quietly posted in April, specifying what veterans must do to qualify for cooperative share loans. Unfortunately, these regulations categorically disqualify purchases in limited equity cooperatives. And yet, many of the veterans who choose to make their homes in New York City will be seeking apartments of modest price. By denying them the benefit of low interest loans for purchases in limited equity cooperative, these rules curtail opportunity for affordable living. CNYC and the National Association of Housing Cooperatives will work with Congress member Maloney to eliminate this prohibition.