HR1803-119

1. Short title This Act may be cited as the Fair Access to Co-ops for Veterans Act of 2025.

2. Improvement of Department of Veterans Affairs loan guarantee for purchase of residential cooperative housing units Section 3710 of title 38, United States Code, is amended— in subsection (a)(12), by striking With respect to a loan guaranteed after the date of the enactment of this paragraph and before the date that is five years after that date, to and inserting To; and by striking subsection (h) and inserting the following new subsection (h): A loan may not be guaranteed under subsection (a)(12) before the date on which the Secretary prescribes regulations setting forth requirements for underwriting, loan processing, project standards, share eligibility, valuation, and other criteria the Secretary determines necessary. The Secretary shall ensure that such regulations are consistent, to the extent the Secretary determines suitable, with the requirements of the Federal National Mortgage Association for the purchase or securitization of cooperative housing loans. Section 3729(b) of such title is amended— in paragraph (1), by striking The amount and inserting Except as provided in paragraph (5), the amount; and by adding at the end the following new paragraph: In the case of an loan guaranteed under section 3710(a)(12) of this title, the amount of the fee shall be— the amount determined from the loan fee table under paragraph (2), plus 3.25 percent of the total amount of the loan guaranteed, insured, or made, or, in the case of a loan assumption, the unpaid principal balance of the loan on the date of the transfer of the property. Section 3703(a)(1)(A)(i)(IV) of such title is amended by striking or (8) and inserting (8), or (12). Such title is further amended— in section 3704(c), by adding at the end the following new paragraph: For purposes of this subsection, stock or membership in a cooperative housing corporation (as defined in section 216(b) of the Internal Revenue Code of 1986) for the purpose of entitling a person to occupy for dwelling purposes a single family residential unit in a development, project, or structure owned or leased by such corporation shall be treated as residential property. in section 3714, by adding at the end the following new subsection: For purposes of this section, stock or membership in a cooperative housing corporation (as defined in section 216(b) of the Internal Revenue Code of 1986) for the purpose of entitling a person to occupy for dwelling purposes a single family residential unit in a development, project, or structure owned or leased by such corporation shall be treated as residential property. The Secretary of Veterans Affairs shall use the authority of the Secretary under section 532 of title 38, United States Code, to advertise the availability of loan guarantees for housing cooperative share loans under section 3710(a)(12) of such title and shall take such other appropriate actions as may be necessary, including by the issuance of guidance, to notify eligible veterans, participating lenders, and interested realtors of the availability of such loan guarantees and the procedures and requirements that apply to the obtaining of such guarantees. Notwithstanding section 501 of such title, the Secretary of Veterans Affairs may issue guidance to implement section 3710 of title 38, United States Code, as amended by subsection (a), before prescribing new regulations under such section. (h)A loan may not be guaranteed under subsection (a)(12) before the date on which the Secretary prescribes regulations setting forth requirements for underwriting, loan processing, project standards, share eligibility, valuation, and other criteria the Secretary determines necessary. The Secretary shall ensure that such regulations are consistent, to the extent the Secretary determines suitable, with the requirements of the Federal National Mortgage Association for the purchase or securitization of cooperative housing loans.. (5)In the case of an loan guaranteed under section 3710(a)(12) of this title, the amount of the fee shall be—(A)the amount determined from the loan fee table under paragraph (2), plus(B)3.25 percent of the total amount of the loan guaranteed, insured, or made, or, in the case of a loan assumption, the unpaid principal balance of the loan on the date of the transfer of the property.. (3)For purposes of this subsection, stock or membership in a cooperative housing corporation (as defined in section 216(b) of the Internal Revenue Code of 1986) for the purpose of entitling a person to occupy for dwelling purposes a single family residential unit in a development, project, or structure owned or leased by such corporation shall be treated as residential property.; and (i)For purposes of this section, stock or membership in a cooperative housing corporation (as defined in section 216(b) of the Internal Revenue Code of 1986) for the purpose of entitling a person to occupy for dwelling purposes a single family residential unit in a development, project, or structure owned or leased by such corporation shall be treated as residential property..