In Suffolk County they do. Suffolk County Executive Steve Levy, flanked by members of the Long Island Board of REALTORS, signed landmark legislation Monday which provides protection for prospective cooperative home buyers against discrimination. The new Suffolk County law, the first in New York State, requires cooperative boards to provide a written explanation for denial within 45 days, and provides enforcement powers to the Human Rights Commission.

Though co-op Boards are not required by law to do so (yet), experienced agents (and attorneys) can find out the reason. The law will eventually be passed requiring disclosure. There is case law (I am a lawyer & broker) that says the decision must be based on the "business judgment rule" (ie financial reasons) and cannot be otherwise in violation of law (eg discrimination laws). If you suspect discrimination (by the questions asked at the interview) you can bring an administrative proceeding (at no cost) and at such hearing the board is legally REQUIRED to disclose the reason. See the blog post below.

Hi Christine, Yes it is a bill in the city council but it has not passed yet. In fact it was a council member from Queens who introduced it. There is support for it but REBNY the real estate board of NY is against it because they represent management companies who represent coop boards. They are lobbying the city council members to vote against it by arguing that it will open up coop boards to lawsuits.

Mitchell, I thought I heard that there was going to be a law mandating that all co-op boards need to disclose WHY they are objecting. I have yet to see it, but did you hear of the same thing out by you?

Under current law coops do not have to offer any explanation when they reject a potential buyer from their building.