the co-op connection the power of principle...

THE CO-OP CONNECTION

THE POWER OF

PRINCIPLE 6

The National Cooperative Business Association • CLUSA International

Mike Beall President & CEO

National Cooperative Business Association

CLUSA International

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COMMUNITY

DEMOCRACY

Co-op’s are the

intersection of Business,

Community, and

Democracy


Cooperative

Principles 7

www.NCBA.coop

Cooperative Principle # 6

Cooperation among Cooperatives Cooperatives serve their members most effectively and strengthen the cooperative

sector by working together through local, national, regional and international

structures. Cooperatives often lack necessary resources to meet all the needs of its

members; can achieve greater economies of scale by working with other co-ops.

• Connecting NAHC with a network of other sectors

• Scheduling a webinar series

• Co-op Month Radio Program

• Worked together with NAHC on FEMA Housing Bill to ensure Housing Co-ops are eligible for FEMA Housing Assistance in times of natural disasters

NCBA CLUSA & NAHC

National Cooperative Business Association • CLUSA International

1401 New York Avenue, NW • Suite 1100 • Washington, DC 20005 • 202.638.6222

www.NCBA.coop

Call to Action: Housing Co-ops Affected by

Hurricane Sandy Need Your Help!

Housing cooperatives in the states of New York, New Jersey, Connecticut and Maryland

affected by Hurricane Sandy are ineligible for Federal Emergency Management

Agency (FEMA) relief programs. FEMA misclassifies housing cooperatives as commercial

business associations, making them ineligible for the agency’s Individual and

Households Program.

As an NCBA member, you have the opportunity to change this!

Representative Steve Israel (D-NY) has drafted a letter alerting the Department of

Homeland Security and FEMA to this issue. If you live in these four affected states, NCBA

strongly urges you to contact your representative and encourage them to sign the

attached letter.

The deadline to sign the letter is March 13 th, so please contact your Members of

Congress today.

Click here to find your Member of Congress.

Thank you for your support of cooperatives.

If you would like to share the success of your advocacy efforts on this issue or have any

questions, please contact NCBA’s Vice President of Advocacy, R.L. Condra at

202.383.5480 or [email protected].

Sincerely,

Michael Beall

President and Chief Executive Officer

PRESS RELEASE Contact: John Torres

202-383-5452

[email protected]

Date:

August 22, 2013

Housing Cooperative Bill Receives Additional Support!

By R. L. Condra, Vice President for Advocacy, NCBA CLUSA

!(WASHINGTON, DC)—Last month, Congressman Steve Israel (D-NY) along with 13

other lawmakers introduced a bipartisan supported bill to make housing cooperatives

eligible for the Federal Emergency Management Agency’s (FEMA) disaster assistance

funding program. Due to the devastation of Hurricane Sandy to many housing

cooperatives in the New York and New Jersey areas, we have learned that FEMA

recognizes housing cooperatives and condo associations as “business associations” and

does not provide disaster assistance as they do for other types of housing such as single-

family homes.! !

NCBA CLUSA is working with Congressman Israel’s office and other members of

Congress to pass legislation to change this oversight. This issue has recently caught the

attention of national media outlets such as the New York Times and Washington

Post. Additionally, the issue has gained support from two powerful U.S. Senators. On

August 1, Senator Chuck Schumer (D-NY) and Kirsten Gillibrand (D-NY) introduced a

companion bill to the House of Representative’s bill.

Click here for the full Washington Post article.!

!The FEMA issue was featured in an August 16 Washington Post real estate column titled

“House Lawyer: In seeking storm relief, condos and co-ops find not all homeowners are

equal.” The writer, Benny Kass, makes the point that the misclassification of housing

cooperatives by FEMA not only neglects Hurricane Sandy victims, but also affects

housing cooperatives in Washington, D.C and other cities across the country when future

disasters occur. ! !

Mr. Kass writes, “The storm impacted the Washington area, but fortunately we did not

experience the extent of damage and destruction that took place in the Northeast. This

does not mean, of course, that those of us who live in this area should be complacent.

There are countless condominium and cooperative associations in our area, and they

could face the same issues if a storm strikes us more directly next time.”

!In the Post’s article, Congressman Israel explains the need for a better understanding

Challenges and issues NAHC faced with FEMA:

• FEMA categorizes co-op and condo associations as “businesses,” deeming them only eligible for loans and not federal FEMA grants.

• Legislators believe owners of cooperative housing and condominiums are discriminated against under current FEMA policy. Example: When making their interpretations on disaster assistance, housing co-ops and condos are treated differently when compared to single-family homes.

• Efforts changing the Stafford Act are to confirm that co-ops and condos are NOT

businesses, but owner run communities deserving of FEMA grants, just as those afforded to single-family residences.

• Historical precedence: After Hurricane Wilma in Florida in 2005, condominium and

homeowners’ associations lobbied for assistance to pay for removal of storm debris, to no avail.

FEMA Housing Bill

• NCBA CLUSA is working with NAHC to reach out and educate

Members of Congress for support of H.R. 2887 & S. 1480.

• NCBA CLUSA has worked closely with the bill sponsor in the

House, Rep. Steve Israel (D-NY).

• NCBA CLUSA galvanized it members, urging them to reach out

to their representatives.

• Connected with the media on key issues and suggested

modifications in support of NAHC and its members.

NCBA CLUSA & NAHC

Due in part to NCBA CLUSA and NAHC combined efforts with Rep.

Israel, FEMA was required to provide a report with options as a result of

language that was included in the FY2014 Consolidated Appropriations

Act (P.L. 113-76). This law required FEMA to:

1. Describe current eligibility of housing co-ops and condo association

owners and residents for disaster relief under the Individual

Assistance Program (IA).

2. A description of availability of IA for owners and residents to pay for

common areas.

3. Provide options, including statutory changes, for housing co-ops

and condo associations directly eligible for federal disaster

assistance based on disaster to common areas through an existing

program or a new program.

NCBA CLUSA & NAHC

Next steps in joint advocacy:

1. Housing co-ops and condo owner-occupants remain eligible for federal

assistance for temporary housing and for repairs INSIDE their individual units.

2. Most housing cooperative and condo associations before Hurricane Sandy

had a master insurance policy to cover common area repairs such as the roof,

the boiler, the hallways, and entrance , etc. but the insurance settlements

were not enough to make the repairs necessary to make the areas habitable.

3. The FEMA report from the FY2014 Consolidated Appropriations Act reaffirmed

the need for statutory changes as provided in the Israel/Schumer bill. It’s

premise relates to fairness, i.e. that condominium or housing cooperative

associations cannot receive FEMA assistance to supplement their insurance

settlement for repairs to common areas that other single-family homeowners

can or even receive an advance while waiting for an insurance settlement.

NCBA CLUSA & NAHC

Established in 1916, NCBA CLUSA is the oldest and largest U.S.

trade association for the cooperative sector—representing all

co-op sectors:

Agriculture

Child Care & Preschool

Credit Unions

Financial Services

Food

Funeral & Memorial

Societies

Healthcare

Housing

Insurance

Marketing

Manufacturing

Technology

Utility


29,000 Cooperatives in the US

2 million jobs

$652 billion in

annual sales

$3 trillion in assets

U.S. Coops by the Numbers…

Key Projects in:

• Senegal

• Uganda

• Indonesia

• Niger

• Burkina Faso • East Timor

• Guatemala • Mozambique


Beginning in 1953, NCBA CLUSA began implementing cooperative

development programs overseas, organizing the Indian Farmers Fertilizer

Cooperative (IFFCO) in the country of India. Today NCBA CLUSA has

projects in 15 countries implementing $40 million USD annually in

international development.

• A “Chamber of Commerce” for co-ops

• The only national organization that addresses co-op issues across industries

• Represents co-op sector before Congress, government, private sector, donors

• Executes international development projects that support cooperative development

NCBA CLUSA’s Role


Key Projects


Nutrition-led & Conservation

Agriculture

MILLET • 73% increase in Millet yields

• Revenue from processed Millet

increased by 226% • Volume sold increased by

193% through co-ops and

private partnerships

YAAJEENDE • 59% reduction in households

that consume fewer than 2

meals per day

• 492 private enterprises

developed (co-ops, women’s groups…)

• Established asset building for

women

• Nutrition training for more

than 40k and counting

Senegal

Key Projects


Empowerment

Yes Youth Can!

Youth

Kenya

• Formed 1,629 youth bunges (groups)

representing more than 83,000

individuals

• 119,023 youth (including 50,674

women) obtained National Identity Cards

• 37,290 youth (including 14,910

women) elected into leadership

positions

• More than 16,000 advocacy campaigns promoted gender

equality, governance, and health

National associations based

on the cooperative model

Key Projects


Poverty

Alleviation

Marks, Mississippi

Cooperative sponsored community

economic empowerment, promoting

locally grown/made products.

• Nearly 35% of current population at or

below poverty level

• Directly targets poverty alleviation

through job creation, business

development, and tourism

• DRM will be formed as a cooperative • Will boost economy, nutrition, health • Combatting “food desert” syndrome

• Model for Public/Private partnerships

• Focused on investing in local community

Delta Regional Market (DRM)

Co-op Question?

What are the global

CHALLENGES

& SOLUTIONS Faced by Co-ops

Questions?

Michael Beall President & CEO


Thank You!

www.NCBA.coop

1401 New York Avenue, NW • Suite 1100 • Washington, DC 20005

202.383.6222

the co-op connection the power of principle...

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