Co-ops and Condos Urged to Lobby Congress for Payroll Loans

In a recent HabitatLive video, Michael Wolfe, president of Midboro Management, and David Berkey, a partner at the law firm Gallet, Dreyer & Berkey, noted that confusion has surrounded the rollout of the federal government's $349 billion Paycheck Protection Program. The program is designed to give employers forgivable loans if they keep employees on payroll during the coronavirus epidemic. 

But new guidelines issued by the Small Business Administration state that "businesses that are primarily engaged in owning or purchasing real estate and leasing it for any purpose are not eligible.” Nor are "residential facilities that do not provide healthcare and/or medical services."

Though these guidelines would seem to render co-ops and condos ineligible for the loans, Wolfe, among others, is urging co-op and condo boards to apply for relief, in the hope that they will be rendered eligible as guidelines are clarified. Now the Council of New York Cooperatives & Condominiums is urging co-op and condo boards to contact their U.S. Senators and Congressmen and ask them to make sure that co-ops and condos are eligible for the relief.

"Point out the lost or deferred revenue you are facing and the extra expenses the pandemic is imposing on the functioning of your community," the council advises. "Ask also that additional funding be provided, since the current program will soon be depleted."

Boards can contact their elected officials by going to this link.