Earlier this year, we notified you that the New York City Council enacted Local Law 58 of 2026 (formerly Introduction No. 1120-B), establishing new requirements for New York City cooperative corporations when reviewing purchase applications.
With the law now set to take effect on July 28, 2026, we wanted to provide a reminder so boards and managing agents can ensure their procedures are in place before the compliance deadline.
Beginning July 28, 2026, applicable NYC cooperative corporations will be required to:
- Maintain written purchase application and transfer requirements and provide them promptly upon request to purchasers, purchasers' agents, and sellers.
- Acknowledge receipt of a purchase application within 15 calendar days by both email and registered mail, confirming whether the application is complete or identifying any missing items required to complete the submission.
- Issue a written approval or denial by email within 45 calendar days after the application is deemed complete.
- Comply with the law's limited extension provisions when additional time is necessary.
Enforcement and Penalties
The New York City Department of Housing Preservation and Development (HPD) is authorized to enforce the law. Civil penalties for noncompliance are:
- $1,000 for a first violation
- $1,500 for a second violation
- $2,000 for each third and subsequent violation
What Boards and Managing Agents Should Do Now
If you have not already done so, now is the time to review and update your sales application procedures. In particular, cooperatives should have systems in place to:
- Track receipt of all purchase application materials.
- Document when an application is deemed complete.
- Calendar statutory review and decision deadlines.
Coordinate interviews and board votes within the required timeframes. - Maintain clear written records of all communications regarding the application.
- Boards that have historically relied on informal or extended review processes should ensure their procedures are updated to comply with the new statutory requirements before the July 28 effective date.
Our firm is available to assist with reviewing and updating your policies, advising on compliance, and preparing or revising sales application procedures.
If you have any questions about how this new law may impact your cooperative, please contact our office. We would be happy to assist.
