How Does Co-op Board Approval Work in NYC?

The co-op board approval consists of filling out and submitting a detailed application and sitting for a board interview. The typical co-op application asks for a litany of financial documents which includes bank statements, a financial statement as well as tax returns among other requirements. You'll also be asked to submit letters of reference in almost all cases as well as
various disclosure forms which you'll be asked to sign.

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You'll typically also submit a copy of your purchase contract and a copy of your commitment letter if you are financing. Most co-op boards take roughly four weeks to review and respond to an application. Now keep in mind that this four-week timeline does not include the period
when the managing agent receives and reviews your application. Usually management reserves about a week in order to review what you've submitted, make sure it's complete not missing anything and then they will submit it to the board. Upon submission to the board is when you can be guided by that roughly four week estimated timeline.

If after four weeks or whenever the board responds they like what they see it means you have been conditionally approved and this will trigger a request for an interview.

Now keep in mind that a co-op has no obligation to invite you to an interview so if they strongly dislike what is contained in the application it is possible that the co-op board can reject you outright. But if you are called in for an interview it's really good news because it essentially means that they're in principle on board with approving you and as a result the objective of the interview is just to make sure that you are the same person as reflected and outlined in the
application.

Now one thing we would like to circle back on is that rough timeline of four weeks in terms of when you'll hear back from the co-op board. Now unlike a condo there is no legal requirement for the co-op board to respond within say four weeks. It could potentially take several months. Admittedly this is rare but we do have one particular example where we were working with a building in Greenwich Village downtown by NYC and it just so happened that during the time of this deal it was the summer so a lot of board members were on vacation and this was pre-COVID and sort of pre-zoom taking over the world and back then the board literally had to have everyone present and physically meet to review applications.

So the summer holidays really delayed the board's ability to review the purchase applications and in addition there were a ton of sales at that same time in the building way more than is normal and as a result it literally took three months for that poor buyer to hear back from
the co-op.
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Save money when buying, selling and renting real estate in New York and Florida with Hauseit (https://hauseit.com). Available in NYC, Long Island, the Hudson Valley and South Florida. Est 2014.

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