RESIDENTIAL COOPERATIVE HOUSING UNITS.

SEC. 501. RESIDENTIAL COOPERATIVE HOUSING UNITS.(a) Housing Benefits for Cooperative Housing Units.—Subsection (a) of section 3710 is amended by inserting after paragraph (11) the following new paragraph:“(12) With respect to a loan guaranteed after the date of the enactment of this paragraph and before the date that is five years after that date, to purchase stock or membership in a cooperative housing corporation for the purpose of entitling the veteran to occupy for dwelling purposes a single family residential unit in a development, project, or structure owned or leased by such corporation, in accordance with subsection (h).”.(b) Conditions of Housing Benefits for Cooperative Housing Units.—Such section is further amended by adding at the end the following new subsection:“(h)(1) A loan may not be guaranteed under subsection (a)(12) unless—“(A) the development, project, or structure of the cooperative housing corporation complies with such criteria as the Secretary prescribes in regulations; and“(B) the dwelling unit that the purchase of stock or membership in the development, project, or structure of the cooperative housing corporation entitles the purchaser to occupy is a single family residential unit.“(2) In this subsection, the term ‘cooperative housing corporation’ has the meaning given such term in section 216(b)(1) of the Internal Revenue Code of 1986.“(3) When applying the term ‘value of the property’ to a loan guaranteed under subsection (a)(12), such term means the appraised value of the stock or membership entitling the purchaser to the permanent occupancy of the dwelling unit in the development, project, or structure of the cooperative housing corporation.”.