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The Disabled and the Co-op Approval Process
Co-op boards have become accustomed to having their process for approving prospective applicants significantly insulated from review. But boards and applicants must be acutely aware of the effect of the laws protecting the disabled as boards are subject to, and their particular building rules do not trump, the disability laws. It attracted front-page attention in the New York Law Journal (an affiliate publication of this newsletter) on June 20, 2007, when a Manhattan court concluded that a co-op board had exceeded statutory bounds by rescinding approval after learning of a prospective purchaser's disability. In Hirschmann v Hassapoyannes (NYLJ June 25, 2007, p.18, col. 3), it was held that a board may not inquire, directly or indirectly, about an applicant's disability. Nor may a Board punish an applicant by pulling its approval for not disclosing a disability ' even if the board argues that the disclosure of the disability was relevant to them during the board interview.
The Co-op Interview in General
The co-op interview process in New York has generated legendary tales spanning those rejected ' such as celebrities and politicians ' to the process itself, e.g., voluminous application forms and interviews of prospective purchasers' companion animals. To an increasing extent, condominiums engage in similar applicant reviews. For the most part, boards enjoy and exercise wide discretion under the business judgment rule so that their decisions are relatively free from oversight. But boards nonetheless may not violate discrimination laws in either the process or the result.
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