Housing Advocates Push for the Enactment of The New York Community Opportunity to Purchase Act (“COPA”)
City Council Bill Intro 902, COPA, was introduced to the New York City Council on May 16, 2024, and is pending a vote with the City Council’s Committee on Housing and Buildings. If enacted into law, the bill would give qualified non-profit entities a first opportunity to submit offers to purchase private residential buildings for sale.
Under COPA, Owners of certain residential buildings with three or more dwelling units would be required to provide written notice to the NYC Department of Housing Preservation and Development (HPD) with detailed information about the property at least 180 days before a sale, with limited exceptions[1]. Once the notice of intent to sell is posted with HPD, a qualified entity has 60 days to submit a notice of intent to submit an offer, then an exclusive 120-day window from the date of the notice to submit an offer to purchase at the list price. In the event the owner receives an offer from a third party, further notice is required to HPD, and qualified entities will have an additional 120-day window to match the offer. HPD can extend any time for “good cause”.
During the 120-day window, owners are not permitted to accept any offers from third parties. The current iteration of the bill does not explicitly require owners to accept an offer from qualified entities, but rather incentivizes the sale through mandatory delay of a sale to other parties.
Owners who fail to comply with the provisions of the bill face a civil penalty of $30,000.00 and may be subject to injunctive relief.
While housing advocates argue the bill is necessary to maintain affordable housing, it raises serious property rights concerns of owners. The right of first refusal, coupled with the protracted process, then exacerbated by HPD’s authority to render any time frame open ended, creates a tremendous obstacle in the transaction process. Delays coupled with uncertainty will hurt buyers, lenders, and sellers alike.
There is no currently scheduled date for the vote to be held but housing advocates claim the bill has garnered enough support to pass a vote before the City Council. If the bill passes, it would be sent to the full City Council before being presented to the Mayor. COPA is effective 120 days after the law goes into effect.
Please note, the current version of COPA is a draft bill and is subject to change.
[1] The bill does not include existing purchase and sale agreements, judicial sales, bankruptcy proceedings, or owner refinancing.
Contact Us
Reach out to your BBG attorney of record or contact us here to discuss how these updates may apply to your specific situation.
Written by: Ryan D. Matthews, Associate, Administrative Law Department
