The New York City Council has overridden the Mayor’s veto of Introduction No. 1120-B. The bill will therefore become law and will amend the NYC cooperative corporations reviewing applications to sell cooperative apartments.
Under the new law, co-op's will be required to:
- A Co-op shall maintain an application and transfer requirements and provide them to a purchaser or purchaser’s agent and seller promptly upon request.
- Acknowledge receipt of the purchase application within 15 days via email and registered mail and advise the purchaser whether the application is complete and, if not, a list of each item required to make the application complete with a citation to the application for each such item
- Provide written notice of approval or denial via email within 45 days after the application is deemed complete
- Comply with limited extension provisions in certain circumstances
Enforcement and Penalties
The law authorizes the Department of Housing Preservation and Development (HPD) to issue violations for failure to comply with these requirements. Civil penalties are:
- $1,000 for a first violation
- $1,500 for a second violation
- $2,000 for third and subsequent violations
Effective Date
The law will take effect 180 days after enactment.
What Co-op Boards and Managing Agents Should Do Now
Boards and managing agents should begin reviewing their sales application procedures and internal timelines to ensure compliance before the effective date. In particular, cooperatives should implement clear systems to:
- Track receipt of application materials
- Document when an application is deemed complete
- Calendar decision deadlines
- Coordinate interviews and board votes within statutory timeframes
- Maintain written records of all communications
Boards that rely on informal or extended review processes will need to be mindful of this new law to avoid violations and civil penalties.
We are available to assist with policy updates, compliance planning or issues and any drafting or modifications to sales application procedures.
For those who wish to review the full legislative text, the final version of Introduction No. 1120-B is available on the City Council’s website.
