The New York City Council quietly passed a controversial bill on Thursday that changes how distressed properties get sold. The Community Opportunity to Purchase Act, or COPA, forces sellers to give nonprofits the first shot at buying their buildings before hitting the open market. This move aims to shift housing stock away from private landlords, but it sparks a fierce debate over who really benefits and who gets left holding the bag.
Small property owners are already worried about their financial survival. The new law requires sellers to delay listing for 90 days while community land trusts make their offers. With Mayor Zohran Mamdani’s rent freeze already in place since October 1, many landlords argue they simply cannot afford to wait or sell at reduced prices. The Council voted 38-9 to pass the legislation, overriding previous concerns about the impact on the real estate market.
The Narrow Scope of the New Law
This version of the bill is much smaller than what was proposed before. It will only affect under 2,500 buildings across the city, specifically those with high violation counts or those already in city remediation programs. Former Mayor Eric Adams had vetoed a similar, broader proposal before leaving office, but the Council believes this targeted approach avoids legal pitfalls. Councilmember Sandy Nurse, who recycled the bill, argued that the changes were necessary to strengthen the legislation against potential lawsuits.
Despite the narrower scope, the mechanics remain the same. Sellers must inform the Department of Housing Preservation and Development when they intend to list a property. This gives nonprofits 70 days to submit an offer, though sellers can apply for exemptions if they claim undue financial hardship. REBNY President James Whelan noted that the Real Estate Board of New York appreciates the “constructive engagement and thoughtful leadership” that led to this more practical version.
Critics Fear Devaluation and Displacement
Opponents argue that giving nonprofits a right of first refusal shuts out conventional buyers who have the cash to fix failing buildings. According to reports, who leads the Small Property Owners of New York as board president, The New York Post heard her say the initiative “is just a foot in the door.” She warned that COPA will devalue buildings, forcing small, often immigrant and multigenerational owners to sell their properties for pennies on the dollar.
Kenny Burgos, CEO of the New York Apartment Association, highlighted the broader financial strain on the sector. “Nonprofits already own and operate housing across our city, and they’re showing us how untenable it has become,” Burgos said. He pointed out that nonprofit buildings often struggle financially despite not paying property taxes, suggesting the issue is as much about government regulations and rent freezes as it is about revenue.
The City Council has made its move, but the real test begins now. Mayor Mamdani backed the legislation during May, and enactment appears imminent as the bill nears signature. However, the economic pressure on landlords is mounting. With interest rates high and rent controls tight, the ability of small owners to maintain their buildings is under siege. If COPA forces more sales, it could accelerate the transition of NYC housing to a nonprofit model, regardless of the market’s ability to absorb the cost.
This is opinion and commentary from the RapForMayor team.
