THE CO-OP CONNECTION THE POWER OF PRINCIPLE 6

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1 The National Cooperative Business Association CLUSA International THE CO-OP CONNECTION THE POWER OF PRINCIPLE 6 Mike Beall President & CEO National Cooperative Business Association CLUSA International

2 The National Cooperative Business Association CLUSA International B Co-op s are the intersection of Business, Community, and Democracy U COMMUNITY S E S DEMOCRACY I S N

3 The National Cooperative Business Association CLUSA International 7 Cooperative Principles

4 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.

5 NCBA CLUSA & NAHC 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 Connecting NAHC with a network of other sectors Call to Action: Housing Co-ops Affected by Hurricane Sandy Need Your Help! Households Program. As an NCBA member, you have the opportunity to change this! attached letter. Congress today. 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 The deadline to sign the letter is March 13 th, so please contact your Members of Click here to find your Member of Congress. Thank you for your support of cooperatives. Scheduling a webinar series or rcondra@ncba.coop. Sincerely, 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 Co-op Month Radio Program Michael Beall President and Chief Executive Officer 1401 New York Avenue, NW Suite 1100 Washington, DC National Cooperative Business Association CLUSA International Worked together with NAHC on FEMA Housing Bill to ensure Housing Co-ops are eligible for FEMA Housing Assistance in times of natural disasters PRESS RELEASE Contact: John Torres jtorres@ncba.coop 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 singlefamily 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

6 FEMA Housing Bill 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.

7 NCBA CLUSA & NAHC NCBA CLUSA is working with NAHC to reach out and educate Members of Congress for support of H.R & S 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.

8 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 ). 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.

9 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.

10 The National Cooperative Business Association CLUSA International Established in 1916, NCBA CLUSA is the oldest and largest U.S. trade association for the cooperative sector representing all co-op sectors: Housing Insurance Marketing Manufacturing Technology Utility Agriculture Child Care & Preschool Credit Unions Financial Services Food Funeral & Memorial Societies Healthcare

11 U.S. Coops by the Numbers 29,000 Cooperatives in the US 2 million jobs $652 billion in annual sales $3 trillion in assets

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13 The National Cooperative Business Association CLUSA International 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. Key Projects in: Senegal Uganda Indonesia Niger Burkina Faso East Timor Guatemala Mozambique

14 NCBA CLUSA s Role 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 The National Cooperative Business Association CLUSA International

15 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 Senegal 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 The National Cooperative Business Association CLUSA International

16 Key Projects Yes Youth Can! National associations based on the cooperative model Kenya Youth Empowerment 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 The National Cooperative Business Association CLUSA International

17 Key Projects Delta Regional Market (DRM) Cooperative sponsored community economic empowerment, promoting locally grown/made products. Poverty Alleviation 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 Marks, Mississippi The National Cooperative Business Association CLUSA International

18 Co-op Question? What are the global CHALLENGES & SOLUTIONS Faced by Co-ops

19 Questions?

20 Thank You! Michael Beall President & CEO The National Cooperative Business Association CLUSA International 1401 New York Avenue, NW Suite 1100 Washington, DC