Mamdani Signs Law Giving Nonprofits First Chance to Buy Distressed Buildings
The law requires owners of eligible buildings to notify the city’s housing department and qualified nonprofit organizations when they plan to sell. Nonprofits will have 20 days to express interest and up to 70 days to make an offer. If an owner chooses another buyer, the law can give a nonprofit a later opportunity to match that offer under specified conditions.
The measure generally applies to residential properties containing four or more units if they satisfy criteria such as major open housing-code violations, established tenant-harassment cases or certain affordability agreements. Owner-resident landlords with no more than five apartments are excluded, as are buildings subject solely to limits from the 421-a tax incentive program. The law does not require owners to sell to a nonprofit or guarantee that a nonprofit can complete a purchase.
The Council approved the revised bill on October 22 by a 38-9 vote, with two abstentions. The measure followed years of debate and a previous veto by former Mayor Eric Adams. Changes negotiated with real estate representatives narrowed its reach: officials estimated that eligible properties fell from about 10,000 to 2,100.
At the signing ceremony in Brooklyn, Council Member Sandy Nurse called the measure an anti-displacement tool for community organizations seeking to repair troubled buildings and preserve affordable homes. Mamdani said it would help keep homes from predatory investors.
The city’s housing department will use the year before the law takes effect to set up the program and certify organizations. Supporters say financing remains a major obstacle: the law creates no dedicated purchase fund, and a housing nonprofit leader said acquisition financing, preservation funding and technical assistance would also be needed.
COPA Gives Community Groups a Chance to Preserve Affordable Homes
For years, community groups sought a way to compete for troubled apartment buildings before they changed hands. Mayor Zohran Mamdani signed the Community Opportunity to Purchase Act on November 10, creating an early purchase opportunity for qualified nonprofits and community land trusts seeking to repair buildings and preserve affordable housing.
The law covers an estimated 2,100 properties, far fewer than the roughly 10,000 originally expected after negotiations narrowed the measure. Eligible owners must notify the city and qualified nonprofits when planning a sale. Organizations get 20 days to express interest and up to 70 days to submit an offer, with a possible later chance to match another buyer’s offer.
The measure targets buildings that satisfy specified conditions, such as major outstanding housing-code issues, substantiated tenant-harassment cases or certain affordability agreements. It does not force an owner to sell to a nonprofit, and it does not ensure the nonprofit can afford to buy.
That limitation matters. The law provides no dedicated acquisition financing program, and a local housing nonprofit leader said opportunity alone would not make preservation possible without purchase financing, preservation funds and technical help. The administration has set aside over $2 billion for affordable-housing preservation over two years, but the amount available for COPA purchases was not specified.
The Council passed the revised measure 38-9 on October 22, after former Mayor Eric Adams had vetoed an earlier version. Its supporters have won a tool against displacement; whether community organizations can use it will depend in part on resources to compete with private buyers.
COPA’s Early-Bid Rules Put New Limits on Property Sales
New York City’s new COPA law inserts a nonprofit bidding process into sales of certain distressed residential buildings, giving qualified organizations an early opportunity before a property reaches other buyers. Mayor Zohran Mamdani signed the measure on November 10; it takes effect in November 2027.
Owners of eligible properties must notify the city and qualified nonprofits when they plan to sell. Nonprofits have 20 days to express interest and up to 70 days to make an offer. If an owner pursues another buyer, a nonprofit may have a later opportunity to match that offer under the law’s conditions. The rules do not compel an owner to accept an initial nonprofit bid, but they add steps and restrictions to the sale process.
The law was once described by critics as an attack on private real estate ownership. Negotiations produced a narrower measure, reducing the estimated number of eligible buildings from about 10,000 to 2,100. It generally covers residential structures containing at least four units if they satisfy specified housing-code, tenant-treatment or affordability conditions; landlords living in their buildings with no more than five apartments are excluded.
The legislation does not guarantee a nonprofit can finance a purchase, and it creates no dedicated acquisition fund. A housing nonprofit leader said additional financing, preservation funding and technical assistance would be needed. That leaves a practical question at the center of the policy: whether organizations given priority can assemble competitive offers while owners navigate the new process.
The City Council approved the revised bill 38-9 on October 22. The program’s implementation now falls to the city’s housing department, which will certify eligible organizations before the law begins.
Reported by amNY, New York Post.
