UPPER EAST SIDE, NY — New York City co‑op buyers may finally spend less time in co‑op limbo, thanks to a new law taking effect this summer that puts hard deadlines on how long boards can take to review applications.
The legislation, often referred to as the “co-op timing bill,” was enacted on Jan. 29 after the Council overrode a veto by Mayor Eric Adams. It will take effect on July 29 — right when many boards will be paused for summer recess.
Intro 1120‑B requires co‑op boards to move much faster once a buyer submits a board package — an attempt to fix one of the biggest pain points in the city’s famously opaque co‑op system.
In the past, it wasn’t unusual for applications to sit for two or three months — or longer — especially over the summer or during the holidays, when boards struggled to gather a quorum.
“Once you submit your co‑op board package, the board now has 45 days to act on it,” Lisa K. Lippman, the top real estate broker and co-op expert at Brown Harris Stevens, told Patch. “That uncertainty of ‘It could be one month, it could be three’ is gone.”
The new rules
Under the new law, managing agents have 15 days to say whether an application is complete, and the board has 45 days to approve or deny once it’s in.
The law, which applies to most co-op buildings with 10 or more units, dictates that co-ops must maintain a full list of required documents, fees, disclosures, interview procedures and contact information and clearly define what makes an application “complete.”
If materials are missing, the board must itemize exactly what is needed within 15 days, but if the co-op fails to provide that notice, the application is automatically considered complete.
From the date an application is deemed complete, the board has 45 days to approve the sale, approve it with conditions, or deny it. Boards are permitted one extension of up to 14 days.
Buildings that miss these deadlines will face civil penalties starting at $1,000 for a first violation and increasing to $1,500 and then capping at $2,000 for subsequent violations.
“The new law puts a hard clock on co‑op approvals so buyers and sellers aren’t left in limbo for months,” Lippman said.
The law comes at a moment when co‑ops are under pressure: Condos have steadily eaten into their market share, and many buyers prefer condos precisely because the approval process is quicker and more predictable, Lippman said.
“For years, one of the biggest turn‑offs of co‑ops was the feeling that nothing was in your control —not the timing and not the decision,” Lippman said. “This law at least fixes the timing.”
The law also allows the timeline to pause during documented summer recess periods in July and August when a board does not meet, but applicants must be notified in advance.
“It’s the first time we’ve had a law about the co‑op board approval process in a really long time, or ever,” Lippman said. “I wonder what it means for the future. I wonder what it means for increased transparency.”
For questions and tips, email Miranda.Levingston@Patch.com.