NYC Co-op Compliance · Effective July 28, 2026

Local Law 58 puts a clock on every co-op application.

15 days to acknowledge. 45 days to decide. Penalties up to $2,000 per violation, with managing agents jointly liable. Tortus is built around the new clock — every application starts the timer automatically the moment it's submitted.

See Tortus Apply →See the timeline

15days

To acknowledge receipt

45days

To decide (after deemed complete)

$2K

Max civil penalty per violation

10+units

Co-op size threshold

The new timeline

Two phases. Hard deadlines. Civil penalties.

Local Law 58 of 2026 (Intro 1120-B) was enacted on January 29, 2026 and takes effect July 28, 2026. It compresses board-application review into two enforceable phases.

  1. Phase 1 — Acknowledgment

    15 daysfrom receipt

    The board must acknowledge the application is complete OR itemize what's missing. If the board fails to provide that notice, the application is automatically considered complete.

  2. Phase 2 — Decision

    45 daysfrom deemed-complete

    The board must approve, approve with conditions, or deny — by email.

Extensions, tolling, and fine print

  • One unilateral 14-day extension is allowed; anything beyond requires the buyer's written consent.
  • An additional 14-day extension if the board requests more information during review.
  • Summer recess tolling in July/August — only if the board adopted a formal written recess policy in advance and applicants are notified.
  • No automatic approval if a board misses the deadline. Civil penalties enforced by HPD via OATH: $1,000 first violation, $1,500 second, capped at $2,000.
  • Managing agents are directly liable alongside the board.
  • Covers purchase applications and other board-approved transfers (trusts, gifts, family transfers, estates). Sublets are not yet covered (may evolve).

Who's covered

  • Co-ops only. Condominiums are entirely excluded.
  • Buildings with 10 or more residential units.
  • HDFCs are exempt.
  • Mitchell-Lama developments are exempt — any cooperative where sales are subject to approval by a governmental housing agency.

The legacy way vs. the LL58-ready way

Domicile is a packet assembler. Tortus is a compliance system.

Stitching PDFs together doesn't help a managing agent meet a 15-day acknowledgment deadline. Knowing what's missing — and itemizing it instantly when needed — does.

CapabilityLegacy (Domicile + PDFs)Tortus Apply
Document uploadPDF assembler, manual sortingAI reads, classifies, dedupes
Building requirementsPM emails a checklistLoaded from offering plan + amendments + crowd
Gap analysisReviewer reads the application and types a listAuto-itemized in real time, ready to send
LL58 acknowledgment (15-day)Manual calendar reminderOne-click acknowledge with auto-drafted itemization email
LL58 decision clock (45-day)Tracked in spreadsheetsLive deadline pill on every application + alert at T-7/T-3/T-1
HPD/OATH audit trailReconstruct from emailEvery transition timestamped, signed, exportable
Multi-applicant scopingOne row per applicantPer-applicant + per-guarantor + dependent flows
Cover letterApplicant writes from scratchAI drafts from cross-doc anomalies; PM approves or skips
Section locks (BP-style)Locked sections, manual unlock messagesLocked sections + reasons + audit trail + email notifications
Cost to buildingPer-application feesFree for buildings

What it means for you

Three audiences. Three different stakes.

Managing agents

Direct liability — $1K–$2K per violation.

HPD/OATH penalties land on managing agents alongside the board. Your acknowledgment system becomes a compliance system overnight.

See Tortus for managing agents →

Co-op boards

The 'we haven't met yet' excuse expires.

Boards that meet quarterly need to either schedule emergency reviews or adopt a formal recess policy. The clock keeps running.

Read the policy primer →

Buyer-side brokers

The 8–12 week board timeline now has a hard ceiling.

Outside summer recess, boards have ~60 days total (15 + 45). Material change for buyer expectations on 10+ unit co-ops.

Try Tortus Apply →

Built for the new law. Free for buildings.

Tortus tracks every clock, drafts every itemization, and emails every acknowledgment — so managing agents and boards never miss a deadline.

See Tortus Apply →Book a demo

This page is informational and not legal advice. Refer to LL58 of 2026 and consult counsel for specific compliance questions.