How Has COVID-19 Changed the NYC Co op Board Approval Process?

How Has COVID-19 Changed the NYC Co-op Board Approval Process? Learn More: https://www.hauseit.com/covid-19-nyc-coop-board-approval-process/

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The COVID-19 pandemic of 2020-2021 resulted in permanent (and mostly positive) changes to the co-op board approval process in NYC. The biggest change ushered in by the pandemic was the digitization of the co-op board package submission process itself.

Other changes include broader acceptance of electronic signature, digital submission of board package fees, faster response time from co-op boards and the pivot to virtual co-op board interviews. Collectively, these changes may shorten the typical co-op board approval timeline going forward.

Digital Board Package Submission

Prior to the pandemic, most co-ops and building managers openly rejected technology and required applicants to physically print and deliver several hard copies of the board application to building management. It was not unheard of for the most conservative Manhattan co-op buildings to require between five and seven hard copies of the board package.

Once the pandemic arrived in NYC, the transfer agents at the management companies started working from home. Therefore and almost immediately, physical submission of board packages completely disappeared.

In the years following the pandemic, we anticipate that most co-op buildings and managing agents will continue to accept digital submissions. We also expect most co-ops to update their board package submission instructions to accept digital submissions.

Broader Acceptance of Electronic Signature

Aside from catalyzing the pivot towards electronic board package submission, COVID-19 also further legitimized e-signature in the eyes of co-op boards and management companies. Prior to COVID and despite the unquestioned legality of electronic signatures in New York, management companies often demanded original ink signatures for all signature pages in the board application.

This open defiance of technology by managing agents created tremendous logistical headaches for buyers, sellers and brokers who were therefore required to mail each other individual documents to sign prior to submitting the board package. Aside from the hassle, this also delayed the submission timeline for the board application itself.

Digital Submission of Application Fees

COVID-19 has also changed the way co-op managing agents accept application fees. Prior to the pandemic, all fees were typically submitted via certified checks which almost always needed to be mailed in or hand delivered to management.

In the wake of COVID-19, most building managers began accepting online payments for application fees via credit card. For building specific fees (such as a move-in deposit), management began requesting that they be paid via wire transfer. We expect these changes to remain in place even after the pandemic fully subsides.

One arguably negative change to the co-op board approval process resulting from COVID-19 is that many co-op buildings added new fees for purchase and lease applications, such as a ‘COVID-19 Cleaning Fee.’

Faster Co-op Board Response Time

COVID-19’s ‘digitization’ of the co-op board package submission procedure has indirectly lead to overall faster turnaround times for co-op boards to review purchase applications. This faster review time is a result of the removal of logistical delays associated with sending physical board packages to board members and the fact that more board members are working from home and traveling less.

Virtual Co-op Board Interviews

COVID-19 also resulted in the complete acceptance of virtual board interviews. Prior to the pandemic, all interviews were held in-person, and the very idea of a Zoom or Skype interview was a non-starter.

The pivot towards virtual interviews dramatically reduced the risk of delays to the overall board approval process.

So there you have it! We hope you enjoyed this video, and if you did, please like, subscribe and leave us a comment. We’d greatly appreciate it. I’m Nick at Hauseit, and we’ll seen you on the next video!

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