After five years of debate, the New York City Council passed a revised version of the Community Opportunity to Purchase Act (COPA) on Thursday. The legislation aims to give nonprofits and, in some cases, for-profit developers partnering with nonprofits, a first opportunity to bid on properties as they come up for sale, prioritizing mission-driven ownership over the open market.
What COPA Does
COPA targets buildings with existing issues—those in poor condition or with affordability restrictions nearing expiration. The law requires owners of these properties to notify the city and a list of “qualified entities” before offering them to the wider market. Qualified entities, defined as nonprofits with experience in property management and affordable housing preservation, then have a window of time to express interest and make an offer.
The revised bill narrows the scope of the original proposal. Properties with fewer than four apartments, owner-occupied buildings with five or fewer units, and vacant lots are exempt. The process unfolds in phases, initially focusing on buildings already involved in city initiatives addressing severe building conditions, like the Alternative Enforcement Program or Certificate of No Harassment programs.
A Divisive Issue
The passage of COPA was not without opposition. Landlord and real estate groups have criticized the act as government overreach, arguing it unfairly favors nonprofits and could drive up housing costs. Ann Korchak, board president of the Small Property Owners of New York (SPONY), and Robert Lee, a SPONY member, stated the amended proposal still creates “serious timing risk that would artificially devalue property” for owners seeking to sell quickly.
Thursday. (Photo by Todd Baker)
Supporters, however, maintain COPA is a vital tool for preserving affordable housing. Councilmember Sandy Nurse, the bill’s sponsor, emphasized the goal is “to keep those units affordable,” arguing that without COPA, “we potentially lose those affordable units.”
What Happens Next?
The law will be rolled out in phases. It is possible that the first year will see limited activity, focused on properties already flagged by the city’s Department of Housing, Preservation and Development (HPD). If the initial phase proves successful, the program will expand to include buildings with less severe housing code violations. It remains to be seen how many qualified entities will emerge and actively participate in the process, and whether they will be able to successfully compete with market-rate buyers.
Frequently Asked Questions
What types of buildings are covered by COPA?
The revised version of COPA covers buildings with poor conditions or expiring affordability restrictions. Properties with fewer than four apartments, owner-occupied buildings with five or fewer units, and vacant lots are exempt.
How long do qualified entities have to make an offer?
Once notified of a covered building owner’s plan to sell, qualified entities have 25 days to notify the owner and HPD of their interest to purchase, and then 80 days to make an offer, according to the New Economy Project.
What happens if a qualified entity makes an offer, but it’s not accepted?
If the landlord rejects all qualified buyers’ offers after the 80-day window, the property can go up for sale on the wider market. The first qualified buyer who made an offer, however, has 15 days to exercise a “right of first refusal” and match the terms of any open market offer the landlord is weighing.
Will COPA significantly alter the landscape of New York City’s housing market, or will it remain a niche tool for preserving affordability in specific cases?