In early February 2026, the New York City Council passed a new law requiring cooperative corporations with ten (10) or more dwelling units to (a) adopt a written application policy which will be available to sellers and prospective purchasers; (b) acknowledge receipt of purchase applications and/or advise prospective purchasers of any deficiencies in their applications within fifteen (15) days after receipt; and (c) review said purchase applications and make a determination within forty-five (45) days after the deficiencies have been remedied and/or the application is completed. The law takes effect on July 28, 2026 and buildings which do not comply are subject to fines and potential lawsuits.
Boards must adopt a written transfer requirement policy
A co-op must create and maintain with its application, written “transfer requirements” which means the complete list of requirements, documents, information, forms, fees, disclosures, and procedural steps that a co-op requires a prospective purchaser or seller to satisfy in connection with a sale. The transfer requirements must be provided to the prospective purchaser, their agent, or the seller promptly upon request. The statute does not require a prospective purchaser to have signed a contract in order to make the request for the “transfer requirements.”
The 15-day completeness acknowledgment
Within 15 days of receiving an application, the board or managing agent must provide a written acknowledgment sent via email and registered mail. In this notice, you must explicitly state if the package is complete or provide a detailed list of the exact missing documents. If the co-op does not provide such written acknowledgment within the fifteen-day period, the application will be deemed to be complete.
The 45-day decision window
Once an application is complete, the board has a strict 45-day window to provide written notice of its consent. It is worth noting that the law (Local Law 58 of 2026) does not grant automatic approval to a buyer if a board misses this deadline. Instead, the law shifts the focus to administrative accountability. If a board fails to comply with these timelines, a complaint may be filed with the NYC Department of Housing Preservation and Development (HPD). A short extension of tis time period is possible.
Pre-existing summer recess policies
The 45-day rule is not absolute during the summer months. If your board does not meet during July or August, you may pause the review clock. However, this exception is not a discretionary “pause” you can apply at will. To be valid, your board must meet these specific criteria:
- Document the policy: The summer recess (which is limited to the months of July and August) must be contained in a written policy maintained in your building’s official records.
- Disclose upfront: You must provide the notice to the applicant as part of the transfer requirements detailed above.
- Specify dates: The notice must identify the exact dates of the recess window.
If you do not meet these conditions, you cannot unilaterally invoke a summer recess once an application is already in progress.
The tiered penalty structure
Non-compliance with these new timelines can lead to civil penalties issued by HPD. The law establishes a tiered fine system based on the frequency of violations:
- First violation: $1,000
- Second violation: $1,500
- Subsequent violations: $2,000 each
Ensuring board compliance
Not all cooperatives are subject to this requirement. Small buildings under 10 units, HDFC’s and Mitchell-Lamas are not subject to this process.
Establishing a clear and vetted checklist builds a professional path that can shield the building from financial penalties and lawsuits. Consider speaking with an attorney to review your current application and procedures and formalize your summer recess policy before the July 28 deadline.