Proposed State Law Would Regulate Coop Application Process
Once again, the New York State Legislature is considering legislation (Bill A1267D/S6408B) that, if passed, would impose time limitations on cooperative boards’ consideration of purchase applications and require them to provide reasons for rejecting an applicant. More specifically, the proposed legislation would require coop boards to:
(1) have a written, uniform application process for considering applications and provide a copy to prospective purchasers, sellers, and agents on request;
(2) advise applicants whether their application is complete or what additional information is necessary within 21 days of receipt;
(3) advise applicants in writing when the board will complete its review once the complete application is submitted;
(4) complete their review and advise the applicant whether the application has been approved or denied within 90 days; and
(5) if the application is denied, provide the reason for the denial. If no written notice of approval or denial is provided within 90 days, the application would be deemed approved.
In the past, cooperatives have strongly opposed similar proposals because of the additional burdens these requirements would create and the potential for litigation that could arise from providing reasons for rejecting applicants. Board members and others may wish to contact their state legislators and express their views on the proposed legislation.