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New to the Co-op scene and learning about board approval processes.
Fair Housing does not allow discrimination for age, race, religion, creed, etc., but boards are allowed to disapprove you for "any reason" (other than discrimination) and they don't have to tell you what the reasons are.
So if they don't like your looks, you might not be approved.
How do they get past the Fair Housing Laws?
Does anyone have stories about having an offer approved, going to contract, and then not getting approved by a board?
The process itself takes a lot of time, so I imagine it would be devastating to not be approved.
I have read this and that online - one person said someone was not approved because they wore brown socks with black shoes . . .
Comments on your knowledge or experiences?
Last edited by nobodysbusiness; 11-03-2019 at 11:03 AM..
One of my siblings with an 800+ credit score went into contract on a co-op. No debt, job for 20+ years, plenty of savings, letters from the highest people in her company. Her buyer's agent had sold there before and there was not a blemish anywhere in her past. Her first foray into buying and with nothing to worry about, she began packing and notified her landlord that she'd be leaving in a few months. Then the buyer's agent called her dumbfounded that she was declined. She looked and saw that her credit report had been run so she immediately check all three and there was not a mark. She asked the agent what she should do. She sent an email to the management company via the agent and it was immediately replied with "Sorry, this application has been rejected," or denied. Or whatever it said. She was crushed never having expected this.
Months later, she found a better unit in another development that had a deeded parking space in the garage and she was approved quickly. We ran into the buyer's agent some time later and she said that she heard through the grapevine that the board was not happy with the selling price, which at that time was maybe a grand or two less than similar units, but this one needed a bit of work.
She never got over the sting of that but in a twist, a friend of a friend bought in that original building and there's a board lunatic who actually checks the garbage and knocks on doors. This gal's next door neighbor bought some peel and stick tiles to put on the floor under her cat's litterbox and had the empty box in the recycle bag outside and this guy came to her door and gave her holy hell for not getting approval to make that improvement on her apartment.
They can deny you for any reason they want and they get around fair housing laws because they don't have to tell you why they rejected your application.
One of my siblings with an 800+ credit score went into contract on a co-op. No debt, job for 20+ years, plenty of savings, letters from the highest people in her company. Her buyer's agent had sold there before and there was not a blemish anywhere in her past. Her first foray into buying and with nothing to worry about, she began packing and notified her landlord that she'd be leaving in a few months. Then the buyer's agent called her dumbfounded that she was declined. She looked and saw that her credit report had been run so she immediately check all three and there was not a mark. She asked the agent what she should do. She sent an email to the management company via the agent and it was immediately replied with "Sorry, this application has been rejected," or denied. Or whatever it said. She was crushed never having expected this.
Months later, she found a better unit in another development that had a deeded parking space in the garage and she was approved quickly. We ran into the buyer's agent some time later and she said that she heard through the grapevine that the board was not happy with the selling price, which at that time was maybe a grand or two less than similar units, but this one needed a bit of work.
She never got over the sting of that but in a twist, a friend of a friend bought in that original building and there's a board lunatic who actually checks the garbage and knocks on doors. This gal's next door neighbor bought some peel and stick tiles to put on the floor under her cat's litterbox and had the empty box in the recycle bag outside and this guy came to her door and gave her holy hell for not getting approval to make that improvement on her apartment.
They can deny you for any reason they want and they get around fair housing laws because they don't have to tell you why they rejected your application.
Wow! Glad it all ended well for your sibling. That first building board sounds like a nightmare.
The process takes a long time - so you look, you put in an offer and go through all of that, then wait for the board - it could be months - just to have to start all over again (and many people would be gun-shy).
Not to mention the $400 application fee she paid, $175 credit check fee, there was another couple of hundred in fees too that I can't remember now. This was probably 4-5 years ago. All that was gone and she had to get new letters of rec from work and friends and all that stuff all over again for the new board application package. Very stressful.
I just realized that you have to pay an attorney to do due process - so you could be out another $3,500-$5,000 for that - and all for nothing.
I think they should have to give some reason, even if vague.
You can find an attorney for much less than that, especially if you're looking in an area full of coops where many real estate attorneys are familiar with what is going on, know the buildings, etc.
The realtor made sure we were very prepared for our coop board meeting. The thing is, you will never REALLY know, unless you do get some insight, why someone was rejected unless it was blatantly obvious.
In my building, they had a person in contract and everything was going through the process---she met with the board and they rejected her. The realtor said she was surprised because everything looked good on paper---but who knows what she could've said during the interview. People say some stupid crap sometimes without thinking. I know the sales price was not the issue so she definitely set off a flag somewhere along the way because my board isn't usually too strict with people.
The only reason to buy a co-op is because they're cheaper than condos, end of story. You get more for your money (lower purchase price, more space, etc.), and buyer closing costs are 1% to 2% lower for co-ops vs. condos according to this article.
But the end of the day, living in a co-op is voluntarily submitting yourself to the will of your neighbors. Some people are okay with that, and jokes aside 95% of co-op buildings are very reasonable and well-behaved. But if you end up in that 5% minority, well... perhaps you would have been luckier if they rejected you in the first place !! Imagine not being able to rent your place, and having the co-op board continue to deny all the applicants for your apartment...
Ultimately, the board application process is an easy backdoor for illegal discrimination. Hard to catch and prove, but it obviously happens. Totally shocked that NYC of all places, where everything is politically correct ten times over, has done nothing to increase transparency with the co-op board approval process. Instead, the state and local governments are focused on legislating the size of security deposits?
The only reason to buy a co-op is because they're cheaper than condos, end of story. You get more for your money (lower purchase price, more space, etc.), and buyer closing costs are 1% to 2% lower for co-ops vs. condos according to this article.
But the end of the day, living in a co-op is voluntarily submitting yourself to the will of your neighbors. Some people are okay with that, and jokes aside 95% of co-op buildings are very reasonable and well-behaved. But if you end up in that 5% minority, well... perhaps you would have been luckier if they rejected you in the first place !! Imagine not being able to rent your place, and having the co-op board continue to deny all the applicants for your apartment...
Ultimately, the board application process is an easy backdoor for illegal discrimination. Hard to catch and prove, but it obviously happens. Totally shocked that NYC of all places, where everything is politically correct ten times over, has done nothing to increase transparency with the co-op board approval process. Instead, the state and local governments are focused on legislating the size of security deposits?
Sometimes you ask a question because you simply know the answer already.
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"The man who sleeps on the floor, can never fall out of bed." -Martin Lawrence
It has taken me awhile, because I really wanted to buy a co-op in NYC, but because of this ridiculous process, I think I will probably rent instead.
I am old and they probably wouldn't like that. I have already been told that if you have a good job, that is worth a lot. I read online that they don't like people home during the day!!!!!!!!
Also: I think it is extra weird that they "don't like" pied a terres - which are actually better for a building - not there, not using elevator, no noise, etc.
My co-op in Bay Ridge is super strict. $750 non refundable application fee, thousands in other ridiculous fees. No sublets, constant assessments and maintenance increases. I wouldnt recommended a coop to anyone. But yeah it's either that or renting. I get it
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