By Michael J. Franco, Lic. Assoc. R.E. Broker, Compass

For most purchases, yes. Under Local Law Int. 1120-B, a New York City co-op board in a building with more than 10 units must confirm within 15 days whether a purchase application is complete, then approve, conditionally approve, or deny it within 45 days. The rules cover applications submitted on or after July 28, 2026. The law sets a clock. It does not require a board to approve anyone or to explain a rejection.

Key Takeaways

• Boards have 15 days to say whether an application is complete, and a late response means the application is treated as complete.
• A decision is due within 45 days of a complete application, with only limited extensions unless the buyer agrees to more time.
• A missed deadline brings fines from the city, not an automatic approval, and boards still do not have to give a reason for a denial.

What does the new co-op law require?

For decades, the co-op approval process in New York City had no fixed timeline. A buyer submitted a board package and waited, sometimes for weeks, sometimes for months, with a mortgage commitment and a rate lock ticking in the background. The City Council changed that in January 2026, when it overrode a mayoral veto and enacted Int. 1120-B (Cozen O’Connor).

The law creates a defined sequence:

1. Within 15 days of receiving an application, the board must acknowledge it in writing, by email and registered mail, and state whether it is complete. If anything is missing, the notice has to list it.
2. Within 45 days of a complete application, the board must tell the buyer or the buyer’s agent whether consent is unconditional, conditional (for example, with a guaranty or additional escrow), or denied.
3. One 14-day extension is allowed without the buyer’s consent, with notice before the original deadline, and another 14 days if the board asks for more information during its review. Anything longer requires the buyer’s written consent.
4. A July and August recess can pause the clock, but only if the board has formally adopted it and told applicants in advance.

Boards must also keep a standardized application package and a complete list of transfer requirements, including forms, fees, interview procedures, and submission instructions, and provide them promptly when a buyer, seller, or agent asks.

Which co-ops does the law apply to?

The timelines apply to co-ops with more than 10 units. HDFC co-ops and transfers that require a government agency’s approval are excluded (Phillips Nizer). Beyond standard purchases, the law also covers other transfers a board must approve, such as transfers into a trust, gifts to family members, and estate transfers.

Condominiums are not covered, because condo boards generally do not approve buyers. Most condos instead hold a right of first refusal, which is a separate and usually faster process.

What happens if a board misses a deadline?

If the board misses the 15-day acknowledgment, the application is deemed complete as of the date the acknowledgment was due, and the 45-day decision clock starts from there.

Missing the 45-day decision deadline does not approve the buyer. Instead, the city’s Department of Housing Preservation and Development can pursue civil penalties through the Office of Administrative Trials and Hearings: $1,000 for a first violation, $1,500 for a second, and $2,000 for each one after that.

What doesn’t the new law change?

The law compresses time. It does not lower the bar. A board can still decline an application for any lawful reason without explaining why, and its financial expectations for debt-to-income ratio and post-closing liquidity remain entirely its own.

Flip taxes, transfer fees, and interview practices are also unchanged. Some practitioners expect more conditional approvals as boards work within the new timelines alongside the Fair Chance for Housing Act, which limits when criminal background checks can be run (Brooklyn Brownstone Sales).

What does this mean for buyers?

The biggest change for buyers is planning. With 15 days for completeness and 45 days for a decision, a clean application should have an answer in roughly two months. With both 14-day extensions, the outer edge without the buyer’s consent is about 88 days.

• Ask for the building’s application package and requirements list early. Boards now have to provide it on request, so there is no reason to guess.
• Submit a complete package the first time. The fastest way to lose two weeks is a missing bank statement or an unsigned form.
• Line up the mortgage commitment and rate lock with the board timeline, and build realistic dates into the contract’s contingency period.
• Plan around summer. If the building has adopted a July and August recess, an application submitted in late June may not be decided until September.

What does this mean for sellers?

Sellers gain something they rarely had before: a predictable path to closing. That makes it easier to plan a purchase, a move, or a sale-contingent transaction. It also makes the quality of the buyer’s package more important at the offer stage. Two offers at the same price are not equal if one buyer is far more likely to clear the board on the first submission.

How The Michael J. Franco Team approaches the board process

On the buy side, the team requests the building’s requirements before an offer is accepted, so the board package can be assembled in parallel with contract negotiations. On the sell side, the team evaluates each offer’s financial profile against what the building’s board typically expects, not just the price. Under the new law, the timeline is now measurable, which means every week saved at the start shows up as a week saved at closing. For context on why co-ops can offer value relative to condos, see Have New York City Co-ops Become Undervalued?, and for the full cost picture, What First-Time Buyers Pay in Closing Costs.

Frequently Asked Questions

How long does co-op board approval take in NYC now?

For applications submitted on or after July 28, 2026, in co-ops with more than 10 units, the board has 15 days to confirm the application is complete and 45 days after that to decide. Limited extensions can add up to 28 days without the buyer’s consent, so most decisions should arrive in about two to three months.

Can a co-op board still reject a buyer without giving a reason?

Yes. The law sets deadlines, but it does not require boards to explain a denial or change their financial standards. Boards still cannot discriminate on the basis of protected characteristics under fair housing laws.

Does the co-op timeline law apply to condos?

No. Condo boards generally do not approve buyers. Most condos instead have a right of first refusal, a separate process that is typically faster than a co-op board review.

What happens if a co-op board misses the 45-day deadline?

The application is not automatically approved. The city can issue civil penalties of $1,000 for a first violation, $1,500 for a second, and $2,000 for each later violation, enforced by the Department of Housing Preservation and Development.

Buying or selling in a New York City co-op?

The Michael J. Franco Team prepares board packages and evaluates buyers with the new timelines in mind.

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This article explains how the law works in general terms and is not legal advice. Speak with a New York real estate attorney about your specific transaction.