If a cooperative's review board rejects an application, what are they required to do?

In the context of cooperative housing, when a review board rejects an application, they are generally not required to inform the applicant of the reasons for the rejection. This policy underscores the cooperative's discretion in managing its membership and maintaining its standards. Unlike other housing systems, cooperatives have the right to choose who can become a member, and the review board's decisions are often final and without the obligation to provide justification.

This approach allows cooperatives to maintain their community standards and member compatibility without liability or potential disputes arising from detailed explanations. The lack of requirement for disclosure helps protect the cooperative from legal challenges or claims of discrimination, as the reasons for rejection — if disclosed — could potentially lead to conflict or misunderstandings.

In contrast, other options involve obligations that are not typically required by cooperative boards. For instance, informing the state about the rejection doesn't align with standard practice, as such internal decisions do not warrant reporting to a regulatory entity. Similarly, approvals based on financial qualifications are separate considerations and do not pertain directly to the process of handling rejections.