Bills of Congress by U.S. Congress

H.R.1803 - Fair Access to Co-ops for Veterans Act of 2025 (119th Congress)

Summary

H.R.1803, the "Fair Access to Co-ops for Veterans Act of 2025," aims to improve the Department of Veterans Affairs (VA) loan guarantee program for veterans purchasing residential cooperative housing units. The bill amends Title 38 of the United States Code to remove time restrictions on loan guarantees and directs the VA to establish regulations for underwriting and loan processing. It also adjusts loan fee structures and clarifies the treatment of cooperative housing stock as residential property under existing VA loan programs.

Expected Effects

This bill will likely increase the accessibility of VA loan guarantees for veterans seeking to purchase cooperative housing. By removing the sunset clause and standardizing regulations, the bill aims to make cooperative housing a more viable option for veterans. The increased loan fees could offset some of the benefits for veterans.

Potential Benefits

  • Increased Housing Options: Expands housing options for veterans by making cooperative housing more accessible.
  • Removes Time Restrictions: Eliminates the sunset clause, providing long-term stability for the loan guarantee program.
  • Standardized Regulations: Establishes clear guidelines for underwriting and loan processing, reducing uncertainty for lenders and veterans.
  • Clarifies Property Status: Ensures cooperative housing is treated as residential property under VA loan programs.
  • Increased Awareness: Requires the VA to advertise the availability of these loan guarantees to veterans, lenders, and realtors.

Potential Disadvantages

  • Increased Loan Fees: Introduces a new loan fee structure that could increase the cost of borrowing for veterans.
  • Regulatory Delays: Implementation depends on the Secretary prescribing new regulations, which could cause delays.
  • Potential for Lender Hesitancy: Lenders may still be hesitant to participate if the regulations are too burdensome.
  • Limited Scope: Only affects veterans seeking to purchase cooperative housing, not addressing broader housing affordability issues.
  • Uncertainty in Implementation: The extent to which the Secretary aligns regulations with the Federal National Mortgage Association remains uncertain.

Constitutional Alignment

The bill appears to align with the Constitution's general welfare clause (Preamble). Congress has the power to legislate in areas that promote the well-being of citizens, including veterans. The bill does not appear to infringe on any specific constitutional rights or limitations. The enumerated power to provide for the common defense likely extends to supporting veterans through housing assistance.

Impact Assessment: Things You Care About

This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).