Calling on All Cooperators to Respond to this Proposed Rule.
Comments are Due January 30, 2024, so submit your comment TODAY!
HUD should exempt cooperative corporations from the 30-day notice requirement being contemplated. Although the resident owners of cooperatives fall under this new requirement, we respectfully urge HUD to exempt housing cooperatives from the 30-day notice requirement. The imposition of the 30-day rule will restrict cash flows and threaten financial stability. Moreover, many cooperatives have HUD-backed mortgages, which will also be threatened by late payments if residents knew they had 30 days to pay before legal action was initiated. Currently, cooperatives typically have payment requirements that require payments to be received by the 5th or 10th of each month, with collection activities commencing on either the 7th or 12th, respectively. While this new rule may be useful in the conventional rental market, it would be devastating to cooperative housing communities. We ask that cooperative housing corporations be exempt from this new rule.
