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<br /> Administrative Plan 7/1/2025 <br />. <br />Page 15-14 <br />PART V: COOPERATIVE HOUSING <br />[24 CFR 982.619; New HCV GB, Special Housing Types, p. 14] <br />15-V.A. OVERVIEW <br />This part applies to rental assistance for a cooperative member residing in cooperative housing. It <br />does not apply to assistance for a cooperative member who has purchased membership under the <br />HCV homeownership option, or to rental assistance for a family that leases a cooperative <br />housing unit from a cooperative member. <br />A cooperative is a form of ownership (nonprofit corporation or association) in which the <br />residents purchase memberships in the ownership entity. Rather than being charged “rent” a <br />cooperative member is charged a “carrying charge.” The monthly carrying charge includes the <br />member’s share of the cooperative debt service, operating expenses, and necessary payments to <br />cooperative reserve funds. It does not include down payments or other payments to purchase the <br />cooperative unit or to amortize a loan made to the family for this purpose. <br />The occupancy agreement or lease and other appropriate documents must provide that the <br />monthly carrying charge is subject to Section 8 limitations on rent to owner, and the rent must be <br />reasonable as compared to comparable unassisted units. <br />When providing HCV assistance in cooperative housing, the standard form of the HAP contract <br />is used with the special housing type specified in Part A of the HAP contract, as follows: “This <br />HAP contract is used for the following special housing type under HUD regulations for the <br />Section 8 voucher program: Cooperative housing.” <br />15-V.B. PAYMENT STANDARD, UTILITY ALLOWANCE AND HAP CALCULATION <br />The payment standard and utility allowance are determined according to regular HCV program <br />requirements. <br />The HAP for a cooperative housing unit is the lower of the payment standard minus the TTP or <br />the gross rent (monthly carrying charge for the unit, plus any utility allowance) minus the TTP. <br />The monthly carrying charge includes the member’s share of the cooperative debt service, <br />operating expenses, and necessary payments to cooperative reserve funds. The carrying charge <br />does not include down payments or other payments to purchase the cooperative unit or to <br />amortize a loan made to the family for this purpose. <br />EXHIBIT 1