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FEMA Denies Housing Co-Ops Sandy Relief

It’s time we update our definition of “home” so that co-ops aren’t just “small businesses.”

Laura Flanders

May 15, 2013

According to New York’s Office of Housing Recovery Operations, some 120 co-op buildings, with 13,000 apartments, and 368 condominiums, with 7,000 units, sustained flooding and damage after Hurricane Sandy blew through town.

Many now need extensive repairs, but people who live in housing co-ops are considered small businesses under federal law and, as such, they’re ineligible for federal hurricane relief. Instead of relief, they’re being advised to apply for a “small business” loan even though they are essentially nonprofit entities set up by property owners.

That’s what many New Yorkers have been discovering to their surprise, as they’ve been turned down for FEMA aid. Even though assistance is finally coming through, people who live in co-ops just can’t get it. And according to the executive director of an organization that helps low-income New Yorkers turn distressed city properties into cooperatively owned and operated homes, that hits low income co-op households especially hard.

“Co-op owners aren’t considered homeowners,” explains Andy Reicher of Urban Homesteading Assistance Board (UHAB).

Maybe it’s time we overhaul our notion of ownership and “home” just as we’re updating our notion of “family.”

Area lawmakers are trying to change the law. This is certainly no time to be discouraging cooperative home-owning, says Reicher. It’s the one sort of home ownership that came out of the mortgage crisis mostly unscathed. Having weathered the financial storm thanks to low rates of foreclosure and arrears, it would be a shame if storm Sandy hurt co-ops now.

This week, climate activists are taking direct action off-shore. Read Wen Stephenson’s report on the Henry David T. versus big coal.

Laura FlandersTwitterLaura Flanders is the author of several books, the host of the nationally syndicated public television show (and podcast) The Laura Flanders Show and the recipient of a 2019 Lannan Cultural Freedom Fellowship.


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