NYC Co-ops will have to inform buyers why they were rejected under new bill!

Co-op Transparency Update as of Feb 2023

NYSAR REALTORS® fundamentally supports equal opportunity in housing and opposes all forms of illegal discrimination in housing. Maintaining the integrity of fair housing policies in New York is of the utmost importance.

Therefore we support ensuring fairness and transparency in the cooperative housing purchase process by establishing a clear timeline for the response to applicants by coop boards and requiring a reason for any denial of an application to help combat illegal discrimination.

NYSAR REALTORS® have successfully advocated for co-op transparency bills in 5 counties (Nassau, Suffolk, Westchester, Rockland, and Dutchess).

NYSAR had advocated for a statewide and an NYC bill for nearly two decades. 

Here is where we are today. 

NYC Council Bills

Public Advocate Jumaane D. Williams and Council Member Pierina Sanchez, Committee Chair on Housing and Buildings, put forward a package of legislation to provide long-overdue transparency and reform to the co-op sales and management process by amending the administrative code of the City of New York.

These bills would combat a history of discrimination among some co-op board processes while enabling boards acting in good faith to continue unimpeded. The length and depth of the co-op application, review, and approval process have made such discrimination easier to perpetrate and more challenging to identify and prevent. By providing uniform guidelines and a 'reason requirement' for rejected applications, the process with be clarified and the standards codified.

NYC Council Bill Int. 915 

• Must provide a written statement of each reason for denying a sale within five days after making the decision. 

NYC Council Bill Int. 914 

• Requires a standardized application and a list of requirements for prospective purchasers 
• Must acknowledge receipt of application within 10 days 
• Must reply to the application within 45 days.

NYC Council Bill Int. 917 

• Requires a co-op to disclose its finances to a prospective purchaser after its offer is accepted within 14 days of a request by the prospective purchaser. 

 NYS Assembly 

A.1778-Lavine

• Would amend Article 11 §§360 - 366 of the Real Property Law
• Co-ops must notify an applicant whether consent to a sale is granted or denied within 45 days. The co-op may provide an extension request if necessary. 
• If the cooperative corporation does not act on the application, the prospective purchaser may inform the co-op that failure to act within 10 days will constitute consent by the cooperative corporation to the sale.
• If no action is taken following the 10-day notice, the cooperative corporation shall be deemed to have consented to the sale. 
• The bill also provides for a longer timeframe for the co-op board to respond during summer months, as boards often meet less frequently during this time.

A.2685-Walker

• Would amend the Civil Rights Law §19 requiring cooperative housing corporations to provide a prospective purchaser with a written statement of reasons when declining the purchaser.

NYS Senate

• Senator Kavanagh will be sponsoring a co-op transparency bill with the assistance of several fair housing advocacy groups.

Respectfully submitted,

Dave Legaz, RE Broker - Keller Williams Realty Landmark

2021 NYSAR President