New Mandatory Timelines For Review Of Cooperative Purchase Applications

On January 29, 2026, the New York City Council enacted Local Law 58 of 2026, adding a new chapter to the New York City Administrative Code that imposes statutory deadlines on cooperative boards when reviewing purchase applications that require board approval. The law addresses longstanding concerns about protracted and unpredictable co-op approval timelines and will require many cooperatives and managing agents to update their application review procedures.

Legislative Background

The legislation was introduced in November 2024 in response to persistent delays and a lack of predictability in processing cooperative purchase applications. Although the bill passed the City Council in December 2025, it was vetoed by the Mayor on December 31, 2025, due to concerns about enforcement costs and the scope of municipal oversight of private cooperative transactions. The City Council subsequently overrode the veto, and the bill became law on January 29, 2026.

Effective Date and Applicability

The law takes effect on or about July 28, 2026, which is 180 days after enactment (the "Effective Date"), and applies to cooperative purchase applications submitted on or after that date. The statute applies to most cooperative corporations containing ten (10) or more dwelling units, subject to certain enumerated exemptions. Notably, the law does not apply to HDFC cooperatives, or other cooperatives subject to approval by a governmental housing agency.

Key Substantive Requirements

1 Application Materials and Transfer Requirements

Cooperatives must maintain written documentation governing their transfer process and, upon request, promptly provide: (i) a written purchase application; and (ii) a written list of all transfer requirements, including required documentation, disclosures, fees, interview procedures, and any supplemental written requests typically made in connection with a transfer. These materials must accurately reflect the cooperative's current practices and procedures, not aspirational or outdated requirements.

2 Fifteen-Day Acknowledgment Requirement

Within fifteen (15) days of receiving a purchase application (and any subsequent submission), a cooperative must issue a written acknowledgment by both email and registered mail stating whether the application is complete, and if incomplete, identifying each specific item required for the application to be deemed complete. If the cooperative fails to issue a timely acknowledgment, the application is deemed complete as of the acknowledgment deadline.

3 Forty-Five-Day Determination Deadline

Within forty-five (45) days after an application is acknowledged as complete (or deemed complete due to a cooperative's failure to timely acknowledge), the cooperative must notify the purchaser or the purchaser's attorney by email that the application has been: (i) approved; or (ii) approved, subject to certain conditions; or (iii) denied. The law affords cooperatives a single, one-time extension of up to fourteen (14) days, provided notice is given to the prospective purchaser before the original deadline expires. Aside from the one-time 14-day extension, this deadline may only be extended upon the written consent of the purchaser.

4 The "Summer Recess" Exception

The statute permits a cooperative to toll this deadline during a "Summer Recess" during the months of July and August, but only if the cooperative has formally adopted a written "summer recess notice" that complies with the law. A valid summer recess notice must be maintained in the cooperative's records and made available upon request and must state that the cooperative does not ordinarily meet during a specified "recess" period in July and/or August. The notice must include the specific start and end dates of that "summer recess" period. The availability of summer tolling is not automatic, and a cooperative may not rely on this provision unless it has adopted and maintained a compliant written notice in advance.

Enforcement and Penalties

The New York City Department of Housing Preservation and Development (HPD) is charged with enforcement of the law, with violations adjudicated before the Office of Administrative Trials and Hearings (OATH). The fine for the first violation is set at $1,000, with all subsequent violations resulting in a $2,000 fine per violation.

Recommendations for Cooperative Boards

Prior to the Effective Date, cooperative boards and managing agents should:

• Review and update application packages and transfer requirement lists for accuracy and consistency;
• Implement tracking systems to monitor submissions, acknowledgment deadlines, and determination deadlines;
• Prepare standardized acknowledgment, incompleteness, and extension notices;
• Confirm procedures for registered mail service and retention of proof of mailing;
• Align board meeting schedules and interview practices with statutory timelines;
• Evaluate whether adoption of a compliant summer recess policy is appropriate for the cooperative.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.