Last week, Senate Minority Leader Chuck Schumer (D-NY), House Small Business Committee Chairwoman Nydia M. Velázquez (D-NY), Rep. Grace Meng (D-NY), Rep. Eliot L. Engel (D-NY) and other members of the New York City congressional delegation sent a letter to Treasury Secretary Steven Mnuchin and Small Business Administration Administrator Jovita Carranza pressing the agencies to issue guidance clarifying the eligibility of housing cooperatives for the Paycheck Protection Program (PPP).
“In New York City alone, there are nearly 100,000 cooperative housing units, providing affordable, middle-class housing to thousands of New York City, Long Island, and Westchester residents,” wrote the lawmakers. “Lost or deferred cooperatives fees from its member-owners, coupled with increases in utilities due to the stay-at-home orders, have made it increasingly difficult for these cooperatives to maintain their employees.”
During the COVID-19 pandemic, financial hardship has been compounded by confusion surrounding whether housing co-ops are eligible to apply for PPP loans, which are forgivable if a borrower meets certain criteria. Furthermore, the agencies charged with implementing the program have issued conflicting guidance over the eligibility of housing cooperatives for PPP loans. In the letter, lawmakers seek clarity and press the Trump Administration to clearly state that housing cooperatives are eligible for PPP loans. The Heroes Act, passed by the House of Representatives on May 15, explicitly includes provisions to extend PPP eligibility to housing co-ops.
“Housing co-ops are part of the fabric of New York and deserve to be included in COVID-19 relief programs,” Schumer said in a press release. “The administration must issue clear guidance on housing co-ops’ eligibility for the Paycheck Protection Program. PPP support is critical for many housing co-ops to weather this crisis and maintain their buildings and employees — as member-owners struggle to pay fees.”
“Cooperatives provide an important source of affordable housing, especially in expensive markets like New York City,” Velázquez said. “Extending PPP eligibility to them during this crisis will ensure they remain viable and continue contributing to New York’s affordable housing stock.”
The letter is also signed by: Senator Kirsten Gillibrand and Reps. Thomas R. Suozzi, José E. Serrano, Carolyn Maloney, Jerrold Nadler, Gregory W. Meeks, Adriano Espaillat, Kathleen M. Rice, Yvette Clarke, Hakeem Jeffries and Alexandria Ocasio-Cortez.
