Bill Introduced in Congress to Let Co-op & Condo Boards Apply for FEMA Grants
Aug. 2, 2013 — A bill introduced in Congress Wednesday by New York Rep. Steve Israel (D - 3rd District) would make housing cooperatives and condominium associations eligible for Federal Emergency Management Agency grants.
Co-op shareholders and condo unit-owners themselves already are eligible for such funds, with many such homeowners after superstorm Sandy having received up to $31,900 each for emergency housing not covered by insurance. Homeowner associations, however, cannot apply for FEMA grants, which co-op and condo boards say are needed to repair common areas as well as such physical-plant necessities as boilers.
"A storm does not discriminate where it hits," Israel said in a statement, referencing Sandy, which battered much of coastal New York City and Nassau County, along with other parts of the Eastern Seaboard. Asserting, "FEMA's policy is the result of not understanding the role of co-ops and condos in our community," Israel, whose district covers northwest Long Island, said this would "allow co-op and condo associations to apply for federal grants from FEMA so we can right this wrong and ensure that these homeowners are eligible to receive the vital assistance they deserve.”
Amends Existing Regulation
The bill, H.R. 2887, "To amend the Robert T. Stafford Disaster Relief and Emergency Assistance Act to provide assistance for condominiums and housing cooperatives damaged by a major disaster, and for other purposes," would allow co-ops and condo associations to be eligible to apply for assistance through FEMA's Individual and Households Program (IHP).
It would also add definitions for "housing cooperative" and "condominium" into the Stafford Act, and calls for the rule-making process to determine an IHP cap for co-ops and condo associations.
The bill was referred to the House Committee on Transportation and Infrastructure, which will consider it before sending it to the House floor for debate. It has 12 co-sponsors, two of whom are on that 59-member committee: New York Rep. Jerrold Nadler (D - 10th District) and New Jersey Rep. Albio Sires (D - 8th District). All the co-sponsors are Democratic except for Long Island Rep. Peter King (R - 2nd District).
"I understand it's an uphill battle," Israel told Newsday. "I'm going to need 218 votes to pass it in the House, and there probably are not 218 members of Congress with co-ops in their district." He added to The New York Times, "We have a lot of educating to do. There will be many members of Congress that would say, 'I don’t have co-ops in my district; why should I support this?' My response would be, I don’t have tornadoes, but I support your assistance."
HUDled Masses
As well, some in Congress may consider the bill redundant: In March, Senator Charles E. Schumer (D-N.Y.) said the federal Department of Housing and Urban Development (HUD) would now allow co-ops and condo associations to use money from its Community Development Block Grants — Disaster Recovery (CDBG-DR) program to cover the cost of repairs to common areas and infrastructure. Condo and co-op boards already can obtain low-interest repair loans from the Small Business Administration.
Because FEMA's primary mandate is providing shelter for displaced homeowners, it does not cover repair to lobbies, boiler rooms or other common areas where no one physically lives. It offers grants of up to $31,900 for emergency housing not covered by insurance. This comes in the form of assistance for a temporary rental or for minimal repairs to one's own home, as well as for essential personal items.
Local Political Support
Regardless, State Senator Tony Avella (D - 11th District) and New York City Councilman Mark Weprin (D - 23rd District) said they supported the legislation and offered Israel their thanks.
The bill came about after Bob Friedrich and Warren Schreiber, co-presidents of the Presidents Co-op & Condo Council of board president in New York City, "approached the Congressman about this inequality," Israel's spokesperson, Samantha Slater, told Habitat. "Once they explained the issue, the Congressman knew he had to do something to get it fixed. This was first discussed before superstorm Sandy," she added. "After the storm hit, the need became even more acute."
Israel and 19 other members of Congress had written to FEMA in March, calling on it to make housing co-ops and condominium associations eligible for disaster-aid grants.
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