Local Law 58 of 2026, which is effective for transfer applications submitted on and after July 28, 2026, enacts new procedures / timelines for covered cooperatives and how transfer applications must be handled in New York City. Prior to the enactment of Local Law 58, cooperative boards enjoyed great discretion as to the timing of the review of a transfer application and when a decision on the application would be rendered; as a result, the seller and the purchaser were often times left in the dark as to the timing of the review process and determination.

Significantly, Local Law 58 applies to, not just a purchase application, but to any application seeking the transfer of a cooperative; i.e. estate transfers, transfers to a trust, and to a family member. Local Law 58 does not, however, apply to all cooperatives; the law does not apply to (i) cooperatives with less than 10 residential units, (ii) HDFC cooperatives, and (iii) cooperatives that require a government housing agency’s approval for a transfer, including certain Mitchell-Lama developments.

Local Law 58 requires cooperatives covered under the law to maintain an “application and a transfer requirements” meaning a written application package setting forth the complete list of requirements, documents, information, forms, fees, disclosures, and procedural steps that a cooperative requires be submitted in connection with a transfer, including any interview, consent form, authorization, or third-party report, that is described in the cooperative’s standardized application, written policies, or governing documents, and any supplemental request by the cooperative in writing for the particular transfer. “Application and transfer requirements” also includes the cooperative’s instructions for submission, including designated mailing and email addresses and any stated standards for completeness.

Pursuant to Local law 58, the following deadlines run from the cooperative’s receipt of a transfer application:

1. 15 Days – Acknowledgement of Receipt: Local Law 58 requires that within 15 days after receiving a transfer application, the cooperative must acknowledge its receipt in writing by both email and registered mail. The Acknowledgement of Receipt must state the following:

a. Whether the application is complete; and if stated not to be complete, an itemization of each thing needed to render the application complete along with a reference to the application where such items were requested to be provided.

b. Any additional materials requested for clarification or completion of previously submitted materials.

If the cooperative fails to provide a written Acknowledgement of Receipt, the application will be deemed complete on the date that the 15-day written Acknowledgement was due.

If the cooperative has adopted a “Summer Recess Notice”, defined by the law to mean a written policy notice maintained in the cooperative’s records and made available upon request which states that the cooperative does not ordinarily hold meetings during a certain period during the months of July and August and expressly identifies the date on which the Summer Recess is deemed to commence and terminate (i.e. the “Summer Recess Period”), then the 15-Day Acknowledgement deadline is tolled during said Summer Recess Period.

2. 45 Days – Determination Date: Local Law 58 provides that no later than 45-days following Acknowledgment of Receipt of a complete application, or the date the application is deemed complete, the cooperative must notify the applicant via email whether consent is granted, granted conditionally upon stated conditions, or denied.

a. The cooperative may request, via email, any additional materials for clarification or completion of previously submitted materials, but such email request must be made within the 45-day period for determination.

b. The cooperative may extend the Determination Date one time by no more than fourteen days without the applicant’s consent, but only if written notice is given via email before the original 45-day deadline expires.

c. An applicant may consent in writing to extend the 45-day Determination Date deadline.

d. If the 45-day Determination Date, and any applicable extensions, ends during a Summer Recess Period, then the Determination Date is tolled during such Summer Recess Period.

Local Law 58 provides that the Department of Housing Preservation and Development shall enforce the law and shall commence a proceeding to recover any civil penalty authorized by the law with adjudication at the Office of Administrative and Trial Hearings. Civil penalties are set at $1,000 for a first violation, $1,500 for a second violation, and $2,000 for a third or subsequent violation. The law does not limit or restrict any rights or remedies granted by any other applicable law.

Cooperatives should review their application package and internal policies and procedures for transfers to ensure compliance with Local Law 58. Also, in the event that the cooperative does not have a Summer Recess Policy, it is urged that one be adopted in writing and made a part of the cooperative’s records. Finally, a calendaring protocol should be adopted in order for the cooperative to ensure they readily track the deadlines set forth in the law.