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As you may be aware, New York City Local Law 58 of 2026, commonly referred to as the “Timing Bill,” becomes effective on July 28, 2026 and applies to cooperative purchase applications submitted on or after that date. The law establishes mandatory timelines for cooperative corporations in processing purchase applications. Please be advised of the following:
45-Day Decision Deadline. Cooperative corporations must approve or deny a completed purchase application within 45 days after receipt of a complete application.
Written Notice of Incomplete Applications. If an application is incomplete, the cooperative must promptly notify the applicant in writing of the missing information or documentation needed before the review period begins.
Limited Extension. Under limited circumstances, the cooperative may extend the review period as permitted by the statute, provided the applicable notice requirements are satisfied.
Written Determinations. Applicants must receive written notice of the cooperative’s determination within the time periods established by the law.
Civil Penalties. Failure to comply with the statutory requirements may subject the cooperative corporation to civil penalties and enforcement proceedings by the City.
Accordingly, we strongly recommend that every cooperative corporation review and, if necessary, update its purchase application procedures before July 28, 2026. Boards, managing agents, transfer agents, and counsel should have a coordinated process in place to: track the receipt of applications; determine when an application is complete; timely request any missing documentation; monitor all statutory deadlines; and issue written determinations within the required time frames.
Our office has developed compliance procedures, forms, and recommended protocols to assist cooperative corporations in meeting the requirements of the new law and minimizing the risk of penalties.
If you have any questions regarding Local Law 58 or would like assistance in updating your transfer procedures to ensure compliance, please feel free to contact our office.
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