New Laws & Requirements for Condo and Co-op Boards – Spring 2026
March 25, 2026Cooperative Boards: Local Law 58 of 2026 - Review Purchase Applications Within Strict Timelines
Effective July 28, 2026, Local Law 2026/058 requires New York City cooperatives with more than 10 units to abide by strict timelines for the review of purchase applications for the first time ever. Specifically, boards must now acknowledge receipt of a purchase application within fifteen (15) calendar days, both by e-mail and registered mail. That communication must confirm a purchaser’s application is complete or specify the missing components. If no acknowledgement is sent within that time frame the application is deemed complete.
Once a purchaser’s board package is complete, the cooperative has forty-five (45) calendar days to issue a decision either approving or rejecting the candidate. Boards are permitted one fourteen (14) day extension beyond the forty-five (45) day deadline, but further extensions require the purchaser’s written consent. Boards are permitted to take a summer recess during which these deadlines are tolled, but only if the recess is publicized to applicable purchasers in advance.
This new regulation will be enforced by the Department of Housing Preservation and Development (HPD), and carries fines of $1,000 for the initial violation, $1,500 for the second violation and $2,000 for each subsequent infraction. HDFCs and other government supervised cooperatives are exempt from the regulation.
This new regulation does not require the cooperative board to explain any rejection of a candidate; it merely requires boards to make timely admissions decisions.
Cooperative boards and transfer agents (be they the managing agent or counsel) should immediately confer to formulate a process for compliance with this new law.
Condominium & Cooperative Boards: Mandatory Attestation for Alteration Filings
On January 26, 2026, the Department of Buildings (DOB) reinstated and updated a previously existing requirement that co-op and condo boards or their representatives formally sign off on permit applications submitted by shareholders and unit owners, "attesting" to the fact that any alterations are in fact board approved. This sign off is built directly into DOB NOW: Build the City’s online filing portal.
This initiative is intended to assist co-op and condo boards by reducing the likelihood that renegade shareholders and unit owners will be able to surreptitiously file for permits for major renovation projects without the board’s knowledge or approval.
The DOB has power to enforce this regulation by denying issuance of a permit or issuing g a "stop work order" for any project in progress for which a permit not in fact authorized by the board has been filed. However, the DOB lacks any means to independently verify the board’s authorization of a permit filed by a shareholder or unit owner. Thus, the new sign-off requirement is not a guaranty against fraudulent filings. Boards and their representatives must maintain their vigilance by: (1) systematically checking the DOB online platform for any unauthorized permit filing within their development; (2) revise their alteration policies and agreements to specify that no alteration approval is deemed to be given, noting no work may commence and no contractors may enter the building for any purpose until the board has confirmed DOB sign off in writing; and (3) update their alteration agreement to provide appropriate sanctions for a shareholder’s or unit owner’s failure to comply with the sign off requirements. Finally, boards and their managing agents must coordinate to implement a workable sign-off procedure.
Condominium & Cooperative Boards: Strike Preparation
The current labor contract with the 32 BJ Union expires on April 20th, and negotiations for a new agreement are underway. While there is currently no talk of an impasse, we strongly suggest that boards confer with their managing agents to begin formal strike preparation measures. These preparations will insure “business as usual” building operation in the event of an impasse.
Herrick's Condominium and Cooperative Group welcomes inquiries concerning preparation of the requisite notice or compliance with new legislation or questions about strike preparation.
For more information on condominium and cooperative law matters, please contact:
Bruce A. Cholst at +1 212 592 1621 or [email protected]
Andrew B. Freedland at +1 212 592 1623 or [email protected]