New legislation would require NYC co-op boards to reform application process

POSTED ON WED, FEBRUARY 22, 2023BY AARON GINSBURG

New legislation introduced by New York City lawmakers this month would require co-op boards to explain to prospective buyers why they are being rejected. The three-bill legislation package, put forth by Public Advocate Jumaane Williams and Council Member Pierina Sanchez, aims to reform policies that critics say contribute to housing discrimination.

Co-op boards typically dig deep into an applicant’s financial, work, and even personal history and require a commitment to living in the unit for an extended period of time. Under current law, co-op boards are not required to disclose the reason for turning down buyers.

law, co-op boards are not required to disclose the reason for turning down buyers.

A version of the legislation has been introduced several times over the years but has never gained enough political momentum to move forward. According to the Wall Street Journal, housing committee chair Sen. Brian Kavanagh in April 2021 sponsored a similar bill that called for a standardized co-op application process. The bill has been stuck in committee.

The legislation package wants to make the co-op board approval process more transparent. Intro 915 would require co-ops to provide potential buyers with a written statement detailing each reason why they’ve been denied, given to the buyers within five dys after the co-op’s decision is made.

The second bill, Intro 914, would reform the appliation process for co-op apartments to guarantee that applicants receive approvals or denials on time. It would standardize the application process and its requirements, and require the co-op to acknowledge their obtainment of application materials within 10 days of receiving them. The co-op would then be mandated to respond to the application within 45 days.

Link to full article :

https://www.6sqft.com/new-legislation-would-require-nyc-co-op-boards-to-reform-application-process/