Coop Board may face a new issue if this legislation passes

Coop board maybe made to give reasons why they reject candidates. Working in the industry for about 25 years and representing over 1,000 buyers who have gone through the board application I can say without a doubt that there are rejections made in NYC coop board applications that are unethical and go against current NYC state and federal laws.

• New proposed legislation may require co-op boards to provide a written explanation to prospective buyers with the reason(s) their application was rejected within five business days.

• There is concern among co-op boards and their counsel that if passed, the proposed bill will make co-op volunteers vulnerable to costly litigation and could open the flood gates to attorneys looking at this as a money-making opportunity by suing co-ops.

• While the outcome of the proposed legislation is pending, buyers should continue to prepare their board packages with great care and look to assistance from an experienced broker who will perform due diligence on their behalf and guide them through the process.