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City Council Co-op Bill | Transparency? Accountability?

The introduction of a bill may help move NYC coops into the 21st century. A previous bill in the city council that would have made coops accountable by having to give a reason in writing why they rejected a purchaser was defeated.

REBNY ( Real Estate Board of New York) opposed the previous bill is now supporting a bill for a transparent coop application process. While the current bill may bring more transparency to the application process, in my opinion it still falls short. Until coops are required to give a reason for rejecting a buyer they will not be accountable.

REBNY now supports the introduction of legislation in the City Council that would mandate that each coop board produce a list of their requirements for a completed application and specify response times for co-op sales applications.

The bill would require cooperative housing corporations to provide a prospective purchaser a decision within a reasonable period of receiving a completed application. This is a step in the right direction. It may make the process fairer by having a uniform application process and requiring a timely response.

Prospective buyers and their representatives who spend time and money completing a lengthy and detailed purchase application process are entitled to a timely written answer.

Cooperative housing is a the dominant form of home ownership throughout NYC. A timely written decision to a buyer’s completed application will benefit buyers and sellers of coops and may even make coops a more desirable form of home ownership and may facilitate market activity since apartments are taken off the market once a contract is signed. The coop board approval process can often take up to 90 days or more.

While introduction of this bill is a a step toward transparency, since many coops have archaic applications and procedures, full transparency will only come when coops are required to give a reason for a board turn down.

Housing discrimination is a violation of federal, state and city laws. Real estate salespersons and brokers are required to take 3 hours of fair housing continuing education every two years. No training, education or skills are required to serve on a coop board.

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