The New York City Council has Enacted Legislation Int 1120-B – Learn More

On January 29, 2026, the New York City Council overrode Mayor Adams’ veto and enacted The Co-op Transparency Law (Int. 1120-B), which establishes mandatory timelines for co-op boards to acknowledge receipt of, and to approve or reject, purchase applications. The law is designed to address delays in the co-op approval processes and it will take effect on July 28, 2026, which is six months after its enactment, so that co-op boards have time to update their procedures.

Key takeaways under the new law:

• Board Acknowledgment Deadline: A co-op board must acknowledge receipt of a purchaser’s application materials within fifteen (15) days.
• Board Decision Deadline: Once an application is deemed “complete,” the board must approve or deny the sale within forty-five (45) days.
• Board Requests for Additional Information: Boards may still request additional information at any time, but the forty-five (45) days timeline starts once the application is “complete.”
• Enforcement and Penalties: Failure to comply can result in violations issued by the Department of Housing Preservation and Development, with civil penalties starting at $1,000 and increasing to $1,500 for a second violation, and $2,000 for third and subsequent violations.

This new law creates additional compliance deadlines for co-op boards and managing agents, with financial consequences for their inaction and procedural delays. For buyers and sellers, this law provides them with greater predictability of a process that has historically not been completely transparent. We expect this legislation to meaningfully impact transaction timelines, board practices, and how co-op purchase applications are structured going forward.

New York City co-op boards, shareholders, sellers and prospective purchasers who want more information about this new law should contact their trusted R&E attorney or Brett Stack who authored this alert.