119-HR-1803 Journalist Public Summary

Headline Summary

Let veterans use their VA home loan benefit to buy co‑op apartments—under new VA rules and an added fee—an idea that just cleared a House subcommittee by voice vote on February 24, 2026. (congress.gov)

What It Does

The Fair Access to Co‑ops for Veterans Act of 2025 would permanently allow the Department of Veterans Affairs (VA) to guarantee loans used to purchase shares in residential housing cooperatives (co‑ops). It tells VA to write underwriting and project‑standard rules (aimed to line up, where suitable, with Fannie Mae’s co‑op requirements), clarifies that co‑op shares count as “residential property” under VA law, and sets a special funding fee: the normal VA fee plus an extra 3.25% for these co‑op loans. In the near term, VA could advertise the option and issue guidance before full regulations are finished. (congress.gov)

Why it matters: In co‑op‑heavy markets—like New York City, which has hundreds of thousands of occupied co‑op apartments—veterans currently have limited ability to use their VA benefit on these homes. Expanding eligibility could open more starter‑ and mid‑price options in places where co‑ops are common. (comptroller.nyc.gov)

Who’s For It

• Sponsors: Reps. Grace Meng (D‑NY) and Nicole Malliotakis (R‑NY) say veterans in co‑op‑dense cities should be able to use the VA loan like other buyers, and they press VA to spread the word once the option is available. (meng.house.gov)
• Veterans of Foreign Wars (VFW): Supports extending the VA guaranty to co‑ops so veterans in cities with many co‑ops aren’t left out of homeownership opportunities. (meng.house.gov)
• Local co‑op advocates: New York–based co‑op leaders back the bill as a way to expand affordable ownership paths for veterans. (meng.house.gov)

Who’s Against It

• On‑the‑record opposition is limited so far, but at the February 24, 2026 markup a substitute amendment offered by Rep. Chris Pappas (D‑NH) failed; the alternative would have tweaked how VA handles co‑op defaults and insolvency. The base bill then advanced by voice vote. (docs.house.gov)
• Lender/market concerns: Financing co‑ops can be complex—Fannie Mae notes that inconsistent co‑op project data and reporting can be a barrier—so implementing reliable project reviews and valuations will matter. (selling-guide.fanniemae.com)
• Cost trade‑off: The bill’s extra 3.25% funding fee for co‑op loans could raise upfront costs for some borrowers, even as VA loans typically avoid private mortgage insurance. (congress.gov)

What’s Next

Status as of February 25, 2026: The Subcommittee on Economic Opportunity forwarded H.R. 1803 to the full House Veterans’ Affairs Committee by voice vote on February 24, 2026. Next steps are a full committee markup, possible House floor consideration, then Senate action. (docs.house.gov)