Dr. Cleopatra Brown testifies in support of Res 0560
Brown introduces herself as a Cold War Navy veteran and community board chair, supports Res 0560 to allow VA home loans for co-ops, describes H.R. 1803 and its 3.25% fee, and recommends a city initiative.
Good afternoon, everyone.
Just want to begin by saying thank you to the chair, Morano, to the co-chair, Ms.
Hudson, and the New York City Council Committee on the Veterans, Committee of Veterans, the Council Committee of Veterans.
My name is Dr.
Cleopatra Brown.
I'm a Cold War Navy veteran and a homeowner in the Brownsville section of Brooklyn.
I served from August 1982 to May 1988 and also reservists in the New York City Navy for two years.
I'm also the chairperson of Brooklyn Community Board 16 Veterans Affairs Committee, and I serve on the Joint Community Boards 3, 8, and 16 Veterans Committee.
On behalf of the Joint Veterans Committee, we are in support of the Resolution 0560-2026.
The United States Department of Veterans Affairs VA Home Loan Guarantee Program has been a cornerstone for veterans for over 80 years and is one of the most essential benefits earned by eligible veterans,
active duty service members, and qualifying surviving spouses, providing pathways to sustainable home ownership.
and long-term financial stability.
The VA Home Loan Guarantee Program currently supports the purchase of eligible single-family homes and condominiums, but strictly exclude veterans from using their benefits to purchase co-ops.
This limitation creates a significant barrier for veterans in New York City and other high-cost urban housing markets, where co-op apartments make up a substantial share of the available home ownership market.
Veterans who have earned the VA home loan benefit through military service should not be prevented from fully utilizing that benefit simply because an affordable
home ownership opportunity is structured as a cooperative rather than a condominium or traditional single-family residence.
In 2006, Congress recognized this issue and authorized a temporary five-year pilot program.
Unfortunately, administrative delays caused it to underperform.
The VA took nearly three years to publish the lender guidelines.
Furthermore, the agency failed to market the benefit, leaving most eligible service members unaware of the option.
The pilot program expired unrenewed in 2011.
The Fair Access to Co-ops for Veterans Act of 2025, H.R.
1803, was introduced in Congress to amend Title 30.
of the United States Code and improve the Department of Veterans Affairs Loan Guarantee Program by providing permanent authority for VA guaranteed financing for the purpose of residential co-ops.
Federal guidelines currently allow veterans to use their VA loan benefits to purchase single-family homes, condominiums, townhomes, or manufactured homes.
However, H.R.
1803 will add a 3.25% loan fee for co-op housing loans.
The New York City Council should examine this proposed 3.25% co-op loan fee and consider whether it will create an affordability barrier for veterans seeking to purchase
co-op apartments, especially given significant monthly maintenance charges and co-op board financial requirements.
While H.R.
1803 requires federal legislative action, New York City Council Resolution
0560-2026 has an important opportunity to help develop an effective implementation framework for VA-guaranteed co-op housing loans.
Expanding VA-guaranteed finance cooperative housing will allow veterans to have equitable access to the home ownership benefit they earn through their military service,
provide veterans with greater housing choice, increase access to home ownership,
allow veterans and their families to build equity and generational wealth, and help address disparities in veteran home ownership in high-cost urban communities.
On behalf of the Joint Veterans Affairs Committee, we recommend that the New York City Council establish a coordinated initiative involving the New York City Department of Veterans Services, DVS, the New York State of Housing
Preservation and Development,
New York City Housing Development Corporation, the New York City Department of Consumer and Workers Protection, participating financial institutions, co-op housing, and veteran-serving organizations.
This initiative should establish veterans co-op home ownership counseling, financial workshops, education on the VA loan eligibility, down payment or closing cost assistance and referrals to participant lenders.
Identify cooperative housing opportunity in New York City that may qualify for VA guaranteed finance under future federal requirements.
Examine co-op corporation policies concerning down payments, financial reserves, debt-to-income ratios, board approvals, and transfer restrictions to determine how these requirements can interact with VA lending
standards.
Coordinate home ownership counseling, financial readiness workshop, and information about applicable down payment or closing cost assistance programs.
And engage banks, credit unions, and other lending institutions to identify financial and regulatory barriers affecting the VA Guarantee Co-op loans.
To promote transparency and accountability, I recommend that the New York City Council commit on veterans, establish guardrails for collected information on participant lenders,
eligible cooperative developments, veterans application, loan approvals and denials, and complete purchases in accordance with applicable privacy requirements.
And Dr.
Brown, I'm just going to ask you to wrap up.
Yes.
Thank you.
Okay.
Just to wrap up.
Please.
In addition, request a formal interagency comprehensive report from DVS, HPD, HDC
to identify any additional steps that may be contingent on congressional actions and that they may require additional city resources or legal authority.
Thank you for your time and consideration.
Thank you very much.
Mr.
Graham.