REMINDER: New Requirements for Review of Cooperative Apartment Purchase Applications

Legal Alert

June 30, 2026

Below is another copy of our Legal Alert dated February 2, 2026 in connection with what is commonly called “the Co-op Timing Bill.” This is a reminder that it is effective as of July 28, 2026. If you have not already done so, now is the time to update/revise your building’s application package to confirm it is complete. It must include all necessary forms, questionnaires, and requirements. It must also include a list of “transfer requirements” for the sale, including transfers to a trust, and how to submit those materials/documents for review. Make sure your application materials note if your board does not regularly meet between July 1 – August 31 a/k/a “summer recess period.” Even if your board meets during these months, it cannot take advantage of the tolling period described below without providing prior notice.

The New York City Council recently added a new provision to the Administrative Code setting forth time deadlines and procedures that boards of apartment cooperatives must observe when considering applications for the transfers of apartments. The new requirements apply to applications submitted after July 28, 2026. Cooperatives’ boards and managing agents must familiarize themselves with and comply with these deadlines and requirements.

The cooperative must have and provide “promptly upon request” an application form and list of requirements for every transfer, including documents, conditions, interviews and background checks. Conditions such as limits on financing, discretionary analysis of financial qualifications, bans on pieds-a-terre or special requirements or procedures for trust transfers should be included.

Then, within 15 days after receiving an application, the cooperative must send the purchaser or its broker – by both registered mail and email – an acknowledgment that it has received the application and a statement as to whether the application is complete or incomplete. If incomplete, the statement must refer to the specific item(s) in the application or requirements that are incomplete. The board may also, in this statement, request additional documentation for “clarification or completion of previously submitted materials.” The 15-day response period applies to the initial submission and any subsequent submission. If the cooperative fails to provide this acknowledgment before the 15-day deadline, the application is deemed complete as of the expiration of the 15-day period and no further information or documentation may be required.

The acknowledgment (or deemed acknowledgement) of receipt of the complete application triggers a new deadline: within 45 days, the cooperative must provide notice via email that consent to the transfer has either been granted unconditionally, granted with conditions, or denied. Within the 45-day period, the cooperative may request additional materials, but such request does not extend the deadline. The purchaser or agent may consent to an extension of the deadline or the cooperative may unilaterally extend the date by up to 14 days by giving notice to the purchaser or agent via email prior to the expiration of the 45-day period.

To address concerns that many cooperative boards do not meet regularly over the summer, either the 15-day or the 45-day period may be suspended during a period in July and August if the board maintains a written notice in its corporate records that is available upon request specifying a “summer recess” period in July and August when it will not consider applications. It is recommended that cooperatives which do not meet regularly over the summer ensure that such notice is included with their application materials no later than June 30, 2026.

It is important to note that this law does not alter a board’s current ability to grant or withhold consent as permitted by law to a transfer except with respect to timing. If a cooperative fails to comply with the law, it will be subject to a civil (not criminal) penalty of $1,000 for the first violation, $1,500 for the second, and $2,000 for the third and subsequent violations. The Code neither creates nor limits other remedies for applicants or sellers.

Please contact us with any questions or concerns you may have.