When searching for listings in Hartsdale, you may notice some apartments in the same neighborhood with unusually low prices. Most of them are co-ops.

If the term is unfamiliar, think of it this way: a condo is when you buy a unit outright, while a co-op involves purchasing shares in a corporation that owns the building, granting you the right to live in that unit.

Thus, condos can generally be bought and sold quickly if the price is right, but co-ops require approval from the corporation's board, commonly referred to as the board.

The reason for the lower prices becomes clear here. There's an additional hurdle for buyers to pass, and the next buyer must also go through the same approval process, which narrows demand compared to condos.

However, if you only look at the low sale prices, you may be surprised by two things: the monthly maintenance fees and the financial criteria for board approval.

First, the maintenance fees. In co-ops, this is referred to as maintenance, which essentially covers property taxes, building mortgage interest, and management labor costs, divided according to your share.

For example, one co-op listing on East Hartsdale Avenue had a monthly maintenance fee of $1,828.

Additionally, there was a special assessment for facility repairs of $337 per month, which was noted to continue until the end of 2026.

If you think about adding this amount to your monthly mortgage, the advantage of a lower sale price diminishes more quickly than expected.

Therefore, when considering a co-op, you should compare the total monthly expenses, which include the mortgage and maintenance, rather than just the sale price. This makes it much easier to assess alongside the combined HOA fees and property taxes of a condo.

Next is the board approval process. The same listing included the conditions required by the board.

A credit score of at least 650, a 10% down payment, a debt-to-income ratio below 28%, and six months of liquid assets were required.

The debt-to-income ratio (DTI) is simply the percentage of your monthly income that goes toward debt repayment. While banks may approve loans with a higher DTI, co-op boards set stricter standards.

Liquid assets refer to cash that can be converted immediately after closing. The board wants to ensure that you can cover maintenance fees even if your income stops for a few months after moving in.

However, these numbers are just the standards for one building. Co-op criteria can vary by building, so another building might require a 20% down payment.

Whether retirement accounts count as liquid assets also varies by building. Some places accept 401(k)s, while others do not, so if your assets are heavily tied up in retirement accounts, it's best to ask in advance.

You should also be prepared for a board package, which is a collection of documents. This includes tax returns, bank statements, proof of employment, and letters of recommendation, and often, an interview follows if your documents pass.

In the past, it was common not to receive reasons for rejection during this process. Many Korean applicants have shared stories of being denied without understanding why.

Westchester County amended its fair housing law in 2021 to change this aspect. Since Hartsdale is part of Westchester, these changes apply here as well.

According to the county's Human Rights Commission, boards must specify minimum financial criteria on the application, and if there are no minimum criteria, they must disclose preferred criteria.

Upon receiving the application, they must confirm receipt or notify you of any missing documents within 15 days, and they must decide on approval or denial within 60 days of receiving a complete application.

If denied, the committee must provide a reason in a specified format and send a copy of that notice to the committee within 15 days.

Board members must complete at least two hours of fair housing training every two years, and new members must complete it within 60 days.

However, this does not mean that boards must accept anyone. They can still deny applicants who do not meet financial criteria, and how they weigh those criteria remains at the board's discretion.

In my view, the real benefit of this law is that it allows potential buyers to know the criteria in advance. If you receive the criteria sheet and find that your numbers do not match, you can shift your focus to a different building from the start.

In summary, when considering co-ops versus condos in Hartsdale, there is an order of checks to follow: monthly maintenance and remaining special assessments, board down payment and debt-to-income ratio criteria, and the range of recognized liquid assets.

If you plan to rent out the unit, you should also check the sublet regulations. Many co-ops have restrictions on renting, making them less favorable for investment compared to condos.

If you plan to live there long-term and exceed the criteria comfortably, a co-op can be a great choice for getting a larger home within the same budget.

Conversely, if you are just barely meeting the criteria, I would recommend obtaining the criteria sheet from the managing agent before making an offer. It's much less painful than placing a deposit and waiting weeks only to receive a rejection notice.