Elena is pre-approved for a share loan but the co-op board rejects her application despite her strong finances. What recourse does Elena have under New York law?
Correct Answer
B) She can sue for damages if she can prove the rejection was based on discrimination
While co-op boards have broad discretion, they cannot discriminate based on protected characteristics under Fair Housing laws. If Elena can prove the rejection was based on race, religion, national origin, or other protected status, she may have grounds for a discrimination lawsuit.
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