How to Get In The Co-op Admission Process

 Purchasing a co-op in New York City can be a real odyssey. Even with thousands  of options on the market, securing a place that fits your lifestyle and budget  can leave you with only a handful of viable choices. Factor in each building’s financial requirements and you may be down to just two or three co-ops that  you qualify for. And then there’s the interview with the board, a nerve-wracking process even for the most well  qualified applicant. But even after the stress and paperwork, many applicants  don't make it past the finish line. For a successful admission process for both  boards and applicants, there are several legal and practical matters that both  parties should keep in mind.  

 Who is the Best Applicant?

 Like every business, each co-op board is different, and this individuality  pertains to the admission process as well. When prospective buyers are looking  into purchasing a co-op, they typically complete a board package that is a  complete picture of their financial history. Boards want to see financially  stable individuals who will be able to cover maintenance fees, mortgage  payments and closing costs, while still having reserves. “The one color you can discriminate is green, which is credit,” says attorney Neil Garfinkel of the law firm of Abrams Garfinkel Margolis  Bergson LLP in Manhattan. “Boards want to see where your income is coming from.”  

 In order to make decisions about an applicant’s finances, boards will typically ask for two years of signed income tax returns  and W2 forms, bank statements, and your last three pay stubs. Many boards also  want applicants to include letters of reference from both personal and business  sources. They may even include a questionnaire. A licensed broker can help  applicants assemble the package, ensuring that they include all required  paperwork and turn it in before deadline.  

 Besides finances and personality, boards are limited in their criteria used to  accept or reject applicants. Garfinkel says that the board cannot discriminate  based on the protected categories of age, citizenship, color, familial status,  handicap, marital or partnership status, race, occupation, religion, sex and  source of income. He adds that New York City has the most protected classes,  compared to the state and even the Fair Housing Act of 1968, which is federal  law.  

 The Interview

 If after reviewing the board package the board feels like the applicant meets  their financial and lifestyle criteria, they will invite them over for an  interview. For many applicants, this is the most stressful part of the process.  The board has the power to ask the applicant more questions relating to their  finances or lifestyle, but cannot ask any questions relating to the protected  categories, says Frederick Peters, a licensed broker and president of Warburg  Realty in Manhattan. For example, many boards may ask why your income has  dropped, or if you are planning on doing renovations in the future. Depending  on the co-op and the board, the interview can be short and succinct or lengthy  and thorough almost to the point of feeling intrusive.  


Related Articles

Multifamily Developers Experiencing Pandemic-Related Delays

Construction Resuming - Slowly - as States Open Up

What’s Next for North Brooklyn Real Estate After L Train Shutdown Suspension?

Is It Still a Buyer's Market Now That Cuomo Reversed Course?

9 Manhattan Luxury Residential Properties Signed Into Contract Last Week

It Was the First Time Since December That the Number of Sales Was Below 10