Section 1 Short title
This Act may be cited as the “Fair Access to Co-ops for Veterans Act of 2024”.
Fair Access to Co-ops for Veterans Act of 2024
A BILL
To amend title 38, United States Code, to provide for the improvement of the Department of Veterans Affairs loan guarantee for purchase of residential cooperative housing units, and for other purposes.
Sec. 2 Improvement of Department of Veterans Affairs loan guarantee for purchase of residential cooperative housing units
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):
“(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.”
Loan fees— 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:
“(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.”
Authority To advertise— 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.
Guidance— 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.