WASHINGTON – Credit unions may qualify for free rent in federal buildings if 95% of the members who use the space are government employees or their family members, NCUA explained last week.
In a new legal opinion, NCUA said the so-called 95% rule has been amendment several times in recent years–but the most recent definition means that the 95% refers to the number of members who actually use the allotted space.
The rule applies to credit union on military bases, in government offices, or in court buildings, among other places.
Under the Federal CU Act, a federal agency may allot building space to a credit union at no charge if "at least 95% of the membership of the credit union to be served by the allotment of space" are, or were at the time of admission to membership, federal employees or their family members, NCUA explained. The 95% requirement applies to those who would be served by the allotment of space.
The legal opinion was requested by NLRB FCU, which occupies space in federal offices in Washington.
