🏙️ A Transformative Shift in How NYC May Buy and Sell Buildings
New York City is on the verge of adopting one of its most significant housing policies in decades: COPA, the Community Opportunity to Purchase Act. If passed, COPA would reshape how multifamily properties are sold by giving approved nonprofits and community land trusts the first opportunity to buy buildings before they hit the open market.
Supporters call COPA a path to preserving affordability and stabilizing neighborhoods. Critics warn it will slow sales, reduce buyer pools, and disproportionately burden small landlords.
This blog breaks down what COPA is, how it works, and how it could impact buyers, sellers, renters, and investors across the five boroughs.
🧩 What Exactly Is COPA?
COPA is a proposed NYC policy that requires the owners of certain multifamily buildings to notify a list of city-approved nonprofits before listing their properties for sale. These nonprofits then receive the first opportunity to make an offer and can later match an outside offer if the owner accepts one. COPA gives nonprofits a first look and first chance to buy a building before private buyers can.
Which buildings are covered?
Final thresholds are still under debate, but generally COPA would apply to:
• Multifamily buildings with three or more units
• Rental buildings that are not owner-occupied
• Buildings where displacement risk is high
COPA does not apply to:
• Single-family homes
• Two-family owner-occupied homes
• New development condos
• Primary residences
If enacted, NYC would become the largest city in the country with such a policy.
🌐 COPA Within the Community Land Act: The Larger Movement Behind It
COPA does not exist in isolation. It is part of a broader set of bills known as the Community Land Act (CLA), which aims to expand community ownership and preserve affordability across New York.
The CLA includes measures that:
• Strengthen community land trusts (CLTs)
• Expand nonprofit acquisition tools
• Increase tenant stability
• Reduce displacement pressures in gentrifying areas
The idea is to counter speculative acquisitions where investors buy buildings quickly, displace tenants, raise rents, or convert units. COPA gives mission driven nonprofits time and opportunity to compete in a market where speed and cash offers typically dominate.
🏢 Who Gets Priority Under COPA? Mission-Driven Nonprofits and CLTs
Under COPA, the owner must notify a list of qualified nonprofits, including:
• RiseBoro Community Partnership
• Phipps Houses
• Settlement Housing Fund
• Mutual Housing Association of New York (MHANY)
• El Barrio Community Land Trust
• Cooper Square Community Land Trust
These organizations have long-track records of operating affordable housing and preserving communities at risk of displacement.
Real NYC Examples: Where Community Ownership Already Works
Versions of COPA are not theoretical. They are already working in several neighborhoods.
248 Arlington Avenue, East New York
The East New York Community Land Trust took control of a distressed building and is converting it into limited-equity co-ops, giving tenants a path to long-term, stable homeownership.
785 East Tremont Avenue, The Bronx
The Bronx CLT helped tenants reverse a foreclosure and stabilize the building, preserving affordability and preventing displacement.
These cases show how nonprofit and community ownership can improve building conditions while keeping rents accessible.
📝 How COPA Works Step-by-Step
1. The owner decides to sell the building. They must notify the city and the qualified nonprofits.
2. Nonprofits have a fixed window (often 60 days) to show interest.
3. If interested, nonprofits are given a 120-day window to make an offer. They may seek financing from public agencies or mission-aligned partners.
4. If the owner receives an outside offer, nonprofits may match it.
5. If nonprofits cannot proceed, the owner may continue with a traditional sale.
These timelines may be extended under certain circumstances, potentially delaying a sale six months or longer.
⚠️ Concerns From Owners and Landlords. While COPA aims to preserve affordability, owners raise real concerns:
Longer Sales Timelines
A six-month or longer delay could affect:
• Refinancing
• Capital improvements
• Emergency repairs
• Retirement plans
• 1031 exchanges
Smaller Landlords Are Most Vulnerable. Many small owners already struggle with:
• Rising insurance premiums
• Higher property taxes
• Rent stabilization caps
• Local Law 97 compliance costs
• Increased maintenance bills
For these owners, a long, uncertain sale process can lead to financial strain or deferred maintenance.
Financing Challenges:
Nonprofits require layered financing (city subsidies, CRA-backed loans, grant funds).
Deals may fall apart if financing delays exceed the timeline.
Potential Legal Challenges:
Property rights groups argue COPA could prompt litigation, as courts may need to weigh in on how far the city can go in regulating first-opportunity rules.
🧱 Why Many Advocates Support COPA
Supporters argue COPA is necessary because NYC faces:
• Near-record-high rents
• Loss of older affordable buildings
• Speculative flipping
• Displacement of long-term tenants
• Shrinking regulated housing stock
They believe COPA:
• Preserves neighborhood stability
• Keeps tenants in their homes
• Empowers communities
• Creates long-term affordability
• Counterbalances aggressive investor acquisitions
👥 How COPA Affects Buyers, Sellers, and Renters
Buyers (Investors and End Users):
• Investors may face fewer multifamily opportunities
• Buyers may prefer condos or smaller buildings not covered by COPA
• Expected longer timelines may lower investor appetite for certain deals
Sellers:
• Must follow COPA’s notice and waiting periods
• Could face longer closing windows
• May receive fewer competitive offers due to uncertainty
Renters
• Often the biggest winners
• COPA can preserve units as permanently affordable
• Reduces displacement in gentrifying neighborhoods
Small Landlords
• Risk financial strain during extended timelines
• Harder to maintain buildings if sale proceeds are delayed
• May accelerate the sale of small properties before COPA takes effect
🏙️ What NYC Can Learn from Other Cities
Washington, D.C. (TOPA)
• Preserved thousands of units
• Suffered from long delays and unworkable processes
• Later modified to exclude small buildings
San Francisco (COPA)
• Strong preservation impact
• Significant financing delays
• Nonprofits often unable to close without city subsidies
NYC will need:
• Fast funding mechanisms
• Clear rules
• Better timelines
• Small-owner protections
to avoid the pitfalls other cities faced.
🌆 The Bottom Line for NYC Real Estate
COPA is a seismic shift in how New York buys and sells multifamily housing. It has the potential to:
• Reshape investor behavior
• Change how neighborhoods evolve
• Increase nonprofit ownership
• Slow down speculative flipping
• But also stress small landlords and reduce market liquidity
With strong backing in the City Council and a new mayor focused on affordability and community ownership, some version of COPA is expected to pass. The final version will hinge on whether policymakers can balance preservation goals with owner rights and economic realities.
📚 Sources
📞 Thinking of buying, selling, or investing in NYC multifamily property?
Policies like COPA could change timelines, buyer pools, and long-term value.
Book a consultation to stay ahead of NYC’s evolving housing landscape.
