COOP BOARD APPROVAL & REJECTION

Co-op boards are not required by law to provide you with a reason for flat out rejecting your application. Maybe it was your financial situation, or maybe it was your shoes. However, according to Human Rights Law, the board is prohibited from rejecting you based on “race, creed, color, national origin, sex, age, disability, sexual orientation, marital status, citizenship, occupation, or the existence of children”.

Here are some possible reasons for board rejection –

Financials – Perhaps you have insufficient income, inadequate liquid assets, or bad credit. In certain situations, co-ops might request 1- or 2-years’ worth of maintenance as security put in an escrow account as a compromise.

Inaccuracies – Maybe your finances don’t look consistent. Maybe you hid those tax returns. Don’t stretch the truth when it comes to your application, especially with your finances.

Low Sales Price – You got too good of a deal. Remember, the board is looking out for their finances as well. A sale in which a motivated seller unloads for a low price brings down property values in the building.

Job History or Security – You ‘ve been bouncing around from job to job every couple of years. Who’s to say you won’t bounce from apartment to apartment?

Primary Residence – The apartment is your second residence. Even though some boards allow pied-a-terre’s, they might think the apartment will act more like a hotel than your weekend residence.

You’re Famous – Lots of celebrities have had difficulty getting into co-ops. Co-ops are notoriously private and don’t want to have to deal with paparazzi or super fans outside the building.

Home Office – You ‘re going to be working from home. If you ‘re a writer, OK. If you ‘re a psychiatrist with patients, that might not sit well with the board.

Board Interview – You really messed up your interview. Your broker should have prepared you for this, but maybe you got stuck in traffic or were just having an off day.