![\"Public](\"https:\/\/www.newsbeep.com\/us-ny\/wp-content\/uploads\/2025\/12\/DSC09406-copy.jpg\" "\\"Why")
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Public Advocate Jumaane Williams.<\/p>\n
Photo by Dean Moses<\/p>\n
New legislation in the NYC Council would require co-op boards to tell prospective buyers why they were turned down for an apartment<\/a>, as well as other protections for would-be property owners.\u00a0<\/p>\n NYC Public Advocate Jumaane Williams is pushing for Intro. 0407<\/a>, a bill he sponsored that would require co-op boards to provide unsuccessful buyers with a written statement explaining why they did not get the apartment.\u00a0<\/p>\n 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.<\/p>\n If Williams\u2019 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.\u00a0<\/p>\n During a recent NYC Council hearing on housing and building<\/a>s, Williams, who won re-election in November, said the bill would help bring \u201cclarity and accountability\u201d to the process of purchasing a co-op apartment in the city.<\/p>\n He also stated that \u201cdiscriminatory practices\u201d have long existed in the industry, although he did not elaborate on their specific nature or extent.\n<\/p>\n \u201cThe extent of discrimination is difficult to quantify but it is estimated to be a factor in almost a fifth of board decisions with broker agents reporting common code words like \u2018NOK\u2019 or \u2018NQ\u2019 to indicate \u2018not our kind\u2019 or \u2018not quite,\u2019\u201d he said. \u201cBecause a potential buyer can wait lengthy periods only to be denied with no explanation, it can be difficult to improve a subsequent application to access co-op ownership after a denial.\u201d<\/p>\n There are more than 6,800 co-op buildings in NYC. Williams said this is more than other metro areas in the country. Intro. 0407 would provide transparency and \u201cmitigate discrimination as secrecy\u201d surrounding co-op denials.\u00a0<\/p>\n \u201cEliminating this closed-door system would have a tremendous impact on efforts to make homeownership more equitable and accessible, setting an important precedent,\u201d he said.\u00a0<\/p>\n How NYC co-ops can make their decisions\u00a0<\/p>\n A co-op typically has a board of directors that adheres to basic legal obligations.\u00a0<\/p>\n Per the NYS Attorney General\u2019s Office,<\/a> boards must \u201cexercise prudent business judgment\u201d\u00a0 in making decisions, just like any other corporate board. It must follow the co-op\u2019s internal rules, as set forth in the bylaws, the proprietary lease, the certificate of incorporation and the house rules.<\/p>\n As far as background checks, it is unlawful for co-ops to refuse to sell, rent or even approve the sale of housing based on a person\u2019s criminal history. However, a board can review an applicant\u2019s criminal history<\/a> after the sale to find out whether or not they are on the state\u2019s sex offense registry.\u00a0<\/p>\n Protections for co-op buyers<\/p>\n