Fair Access to Co-ops for Veterans Act of 2025 | ChamberLight
Bills · HR 1803
IN COMMITTEE· 119TH CONGRESS
House BillHR 1803User charges and feesVeterans' loans, housing, homeless programs
Fair Access to Co-ops for Veterans Act of 2025
INTRO MAR 3· LAST ACTION FEB 24
READING
4MIN
COSPONSORS
4BIPARTISAN
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8
Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
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This bill matters because it could significantly expand housing options for veterans. In many urban areas, co-ops are a common form of homeownership, and making VA loans permanently available for them means veterans have more choices where they can live, potentially making homeownership more accessible. If this bill becomes law, veterans would have clearer, long-term access to using their hard-earned benefits for co-op housing, and the VA would actively promote this option.
Without this bill, the VA's authority to guarantee loans for co-ops would expire, limiting veterans' housing choices and potentially forcing them into different types of housing or different loan products. The addition of a clear regulatory framework and a requirement for the VA to advertise the program means more veterans and lenders will be aware of and confident in using these benefits, despite the new, higher fee that would be imposed on these specific loans.
KEY PROVISIONS
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PROVISION 01
Removes the five-year time limit on VA loan guarantees for residential cooperative housing units, making the program permanent.
This ensures veterans have a long-term option to use their VA benefits for co-op housing, rather than it being a temporary program.
PROVISION 02
Requires the Department of Veterans Affairs (VA) to establish specific regulations for underwriting, loan processing, project standards, share eligibility, and valuation for co-op loans.
These clear rules will standardize the process and provide certainty for both veterans and lenders, potentially increasing the availability of these loans.
PROVISION 03
Adds an additional fee of 3.25% of the total loan amount for VA-guaranteed loans used to purchase residential cooperative housing units, on top of existing fees.
This provision increases the upfront cost for veterans choosing to use a VA loan for a co-op, impacting the affordability of this housing option.
PROVISION 04
Clarifies that stock or membership in a cooperative housing corporation, for the purpose of occupying a dwelling, is treated as 'residential property' for VA loan purposes.
This legal clarification ensures consistency in how co-op ownership is viewed and processed within the VA loan system.
PROVISION 05
Directs the VA to advertise the availability of loan guarantees for co-op units to eligible veterans, participating lenders, and realtors.
This provision ensures that relevant parties are informed about the program, increasing awareness and utilization of the benefit.
This bill matters because it could significantly expand housing options for veterans. In many urban areas, co-ops are a common form of homeownership, and making VA loans permanently available for them means veterans have more choices where they can live, potentially making homeownership more accessible. If this bill becomes law, veterans would have clearer, long-term access to using their hard-earned benefits for co-op housing, and the VA would actively promote this option.
Without this bill, the VA's authority to guarantee loans for co-ops would expire, limiting veterans' housing choices and potentially forcing them into different types of housing or different loan products. The addition of a clear regulatory framework and a requirement for the VA to advertise the program means more veterans and lenders will be aware of and confident in using these benefits, despite the new, higher fee that would be imposed on these specific loans.
KEY PROVISIONS
AI-extracted
high
Removes the five-year time limit on VA loan guarantees for residential cooperative housing units, making the program permanent.
This ensures veterans have a long-term option to use their VA benefits for co-op housing, rather than it being a temporary program.
high
Requires the Department of Veterans Affairs (VA) to establish specific regulations for underwriting, loan processing, project standards, share eligibility, and valuation for co-op loans.
These clear rules will standardize the process and provide certainty for both veterans and lenders, potentially increasing the availability of these loans.
high
Adds an additional fee of 3.25% of the total loan amount for VA-guaranteed loans used to purchase residential cooperative housing units, on top of existing fees.
This provision increases the upfront cost for veterans choosing to use a VA loan for a co-op, impacting the affordability of this housing option.
med
Clarifies that stock or membership in a cooperative housing corporation, for the purpose of occupying a dwelling, is treated as 'residential property' for VA loan purposes.
This legal clarification ensures consistency in how co-op ownership is viewed and processed within the VA loan system.
med
Directs the VA to advertise the availability of loan guarantees for co-op units to eligible veterans, participating lenders, and realtors.
This provision ensures that relevant parties are informed about the program, increasing awareness and utilization of the benefit.
No specific date provided; must occur before loans can be guaranteed under the specific provision.
The Secretary of Veterans Affairs must prescribe regulations setting forth requirements for underwriting, loan processing, project standards, share eligibility, and valuation before a loan for residential cooperative housing units can be guaranteed under subsection (a)(12).
GLOSSARY
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VA loan guarantee
A promise by the Department of Veterans Affairs to lenders that if a veteran defaults on a home loan, the VA will cover a portion of the loss. This reduces the risk for lenders and helps veterans get more favorable loan terms.
Residential cooperative housing unit (co-op)
A type of housing where residents don't directly own their individual unit, but instead own shares in a corporation that owns the entire building. These shares give them the right to live in a specific unit.
Underwriting
The process a lender uses to assess the financial risk of a potential borrower and determine if they should approve a loan. This involves checking credit, income, and assets.
Loan processing
The administrative steps involved in preparing a loan application, from initial paperwork to final approval and disbursement of funds.
Project standards
Requirements or criteria that a cooperative housing building or development must meet to be eligible for VA loan guarantees, ensuring quality and financial stability.
Share eligibility
The specific conditions or criteria that a veteran's ownership shares in a cooperative housing corporation must meet for the purchase to qualify for a VA loan guarantee.
ACTION TIMELINE
6 EVENTS
FEB 24
Subcommittee Consideration and Mark-up Session Held
COMMITTEE
FEB 24
Forwarded by Subcommittee to Full Committee by Voice Vote.
COMMITTEE
MAR 11, 25
Subcommittee Hearings Held
COMMITTEE
MAR 10, 25
Referred to the Subcommittee on Economic Opportunity.
The process of determining the monetary value of a property, often done by an appraisal, to ensure the loan amount is appropriate for the asset being purchased.
Federal National Mortgage Association (Fannie Mae)
A government-sponsored enterprise that buys mortgages from lenders, packages them into securities, and sells them to investors. This provides liquidity to the mortgage market and sets common standards for loans.
