City Council’s Proposed COPA Bill Rattles Multifamily Building Owners

Proposed legislation led by District 37 council member Sandy Nurse was reportedly “on a list set to age, meaning it would be eligible for a council vote,” however, in an effort to address pushback, it was pulled from the list and according to the post by The City, updated on Monday, December 8. The Community Opportunity to Purchase Act (COPA) initially introduced in 2021 “has had multiple hearings on the measure,” most recently in early June. Should the bill be approved, it would give “certain qualified entities, as set by Department of Housing Preservation and Development (HPD) rule, a first opportunity to submit a statement of interest in purchasing  and a first opportunity to purchase certain residential buildings or lots zoned for residential use when offered for sale” according to text posted on the City Council’s website.

Landlords and real estate industry groups reportedly say that even with the recent amendments that alter the range of buildings offered, expand the types of buyers and truncate the transaction timeline, the “bill is still too broad and would slow down the market, while “tenant advocates, community land trusts and Mayor-elect Zohran Mamdani have argued that COPA could help preserve affordable housing, provide a measure of stability for tenant and prevent speculation.” The recent amendments raised the range of residential buildings from three or more units to “at least four units, and they must also have significant physical or financial problems, or have affordable housing program requirements about to expire, such as tax credits.” Vacant lots zoned for residential use would also be subject to the program, but owner-occupied buildings with up to six units would be exempt. Eligible buyers have now been expanded to allow participation by for-profit buyers that can team up with nonprofit groups “so long as they get on HPD’s qualified preservation buyers lists.” An owner looking to sell a property that is subject to the program would need to notify HPD before moving forward with such plans. Following notification, the qualified buyer needs to submit a statement of interest within 45 days and upon receipt, the owner can accept or decline the offer; and if declined, the sale can then go on the market. If the property owner accepts an open market offer, the qualified buyer that had previously bid has a chance to match it.

According to a November 24th article by The Real Deal, the earlier version of COPA stated that the seller had to submit notice of an intended sale within 60 days, and the qualified buyer had a 120-day window to submit a statement of interest to HPD, during which time the owner is not allowed to accept other offers. Opposition at the time noted that it would preclude 1031 exchanges, since they must close within a 180-day window, while the concept of the city getting involved in the sale transactions of privately owned properties and the idea of having to tell the government that you are selling your property “seems like the most basic, un-American idea” was also expressed. Some owners suggested a COPA pilot version that applied to a smaller range of buildings as potentially workable and The Real Deal’s article cited similar programs that have had some success in San Francisco and Washington, D.C., which has the Tenant Opportunity to Purchase Act (TOPA) enacted in 1980. New York’s State legislature is also proposing a version of TOPA, but critics “agree that the success of COPA and TOPA programs hinges on nonprofits being able to tap into a steady stream of capital and tenants’ ability to organize.” Even the HPD has expressed concern about the potential of the agency’s staff being overwhelmed upon becoming the intermediary of these deals. Finally, one affordable housing developer requesting to remain anonymous reportedly commented that “overall, they [city council] just keep making it harder to do business in New York City.”

Source:    https://therealdeal.com/new-york/2025/11/24/nyc-multifamily-owners-brokers-fear-copa/

Source:     https://nyccli.org/wp-content/uploads/2025/12/int.-902-a-copa-f.a.q.pdf