NYC co-ops forced to disclose reasons for sale denial, under proposed law

"A co-op owner is a person who buys shares in a corporation, which are then given to a specific apartment. In return, co-op owners are entitled to a long-term proprietary lease for the apartment. If Williams' bill is passed into law, co-op boards would be required to provide their reason for denying a sale to a potential buyer within five days of making their decision."

"The public advocate said the current process for denying sales is open for the possibility of discrimination and denial of housing to qualified applicants. During a recent NYC Council hearing on housing and buildings, Williams, who won re-election in November, said the bill would help bring clarity and accountability to the process of purchasing a co-op apartment in the city. He also stated that discriminatory practices have long existed in the industry, although he did not elaborate on their specific nature or extent."

Intro. 0407 would require co-op boards to provide unsuccessful buyers with a written statement explaining the reason for denial within five days of a decision. A co-op owner buys shares tied to a specific apartment and receives a long-term proprietary lease. The bill aims to increase transparency, mitigate discriminatory practices, and create accountability in co-op sale decisions. Discrimination is estimated to factor into almost a fifth of board decisions, with brokers reporting coded rejections like 'NOK' or 'NQ.' Lengthy unexplained denials hinder applicants' ability to improve future applications. There are more than 6,800 co-op buildings in NYC.

Read at www.amny.com