PCCC leads national effort to include
co-ops in the PPP Program
l-r: PCCC Executives Mark Ulrich, V.P.; Janice Schreibersdorf, Secretary; Michael Kurtz, Treasurer; Warren Schreiber, co-President; Geoffrey
Mazel, Esq., Executive Member/Counsel; Bob Friedrich, co-President
BY GEOFFREY MAZEL, ESQ.
On Dec. 27, 2020, Donald
Trump finally signed a
coronavirus stimulus relief
bill. This bill includes relief for a
wide range of Americans, including
$600 direct relief checks for qualified
people; relief for the airline
industry and restaurant industry;
extension of supplemental unemployment
benefits; and may other
provisions. The legislation is over
5,000 pages in length.
Tucked away in this legislation is
much-needed relief for cooperative
housing corporations. This legislation
specifically makes co-ops eligible for
forgivable loans under the Payment
Protection Program. The inclusion
of co-ops in this legislation was the
result of a long, hard battle, led by
a Queens-based organization, the
President’s Co-op & Condo Council
(“PCCC”). The PCCC is a residential
cooperative advocacy organization.
While they have vast experience
on local issues with the New York
City Council and New York State
Legislature, they had to reach out to
a national network of organizations
to push for this legislation.
The Payroll Protection Program
(“PPP”) was part of the original
CARES Act passed by the U.S.
Congress and it provided forgivable
loans to small businesses in
March 2020. Since the COVID
pandemic was raging at this time,
this program provided a glimmer
of financial relief to the suffering
co-op community. Obviously, PPP
loans would provide much-needed
relief to co-op residents who have
been hit hard by the COVID-19
crisis, especially in New York City,
the epicenter of the pandemic at
that point in time.
However, on April 2, 2020,
the tens of thousands of co-op
residents in our area and the 1.5
million co-op residents in this
country were devastated to learn
that the U.S. Small Business
Administration (SBA) issued an
Interim Final Rule stating that the
Payroll Protection Program excluded
“passive entities,” which would
include residential cooperative
corporations. This ruling unfairly
carved residential co-ops out of this
critical relief program. The PCCC
took immediate action to right this
tremendous injustice.
At that time, the PCCC spearheaded
a national coalition of
co-op advocates, including elected
officials and sister co-op organizations.
The feedback was immediate
and effective. On April 22, 2020,
Northeast Queens Councilman
Paul Vallone introduced a resolution
calling on Congress and
President Trump to expand the
CARES Act and Payroll Protection
Program to include considerations
for residential cooperatives and
condominiums, allowing them
to access critical PPP loans processed
by the U.S. Small Business
Administration.
In May, 2020, as a result of the
support of Congress members
Grace Meng and Tom Suozzi
and the Queens Congressional
Delegation, the House of
Representatives passed the Heroes
Act, which included explicit language
that would qualify co-ops for
PPP loans. Obviously, the biggest
hurdle was yet to come — passing
this legislation in the United States
Senate.
Thereafter, the PCCC worked
closely with New York Senator
Chuck Schumer’s office to ensure
that any stimulus package in the
U.S. Senate would include co-ops
in the PPP Lending Program.
Senator Schumer met with the
PCCC personally and fought doggedly
for our co-op residents to
ensure that co-ops were included
in any further stimulus package.
On Dec. 21, 2020, Senator
Schumer announced that co-ops
would finally become eligible for
forgivable PPP loans as part of the
new $900 billion stimulus package
hammered out by House and
Senate. Finally, on Dec. 27, 2020,
this legislation was signed into law
by the president.
Co-op residents throughout the
city are relieved that they can now
enjoy some financial relief because
of this important program.
“Co-ops are facing the same
severe revenue problems as
other business concerns. They
are suffering declining revenues
and increased expenses. It was a
critical victory that they are now
included in the PPP program,”
said Bob Friedrich, co-president
of the PCCC.
“As a result of this injustice, the
PCCC, along with co-op advocacy
groups across the nation,
made their voices heard loud
and clear in Congress,” added
Warren Schreiber, co-president of
the PCCC.
As of January 15, lenders began
accepting applications for PPP
loans from co-ops. The maximum
loan amount is 2.5 months’ worth
of payroll and qualified benefits.
As stated above, if the monies
are spent in accordance with the
statutory guidelines, the loan is
forgivable. These monies will provide
much needed financial relief
for many co-ops throughout New
York City.
Geoffrey Mazel, Esq., is counsel
to the President’s Co-op & Condo
Council
20 NORTH SHORE TOWERS COURIER ¢ February 2021