New York City law gives nonprofits first chance to buy distressed buildings

New York City Mayor Zohran Mamdani signed the Community Opportunity to Purchase Act (COPA) into law, which grants qualified nonprofit organizations the first opportunity to buy certain distressed multi-family buildings, according to nystateofpolitics.com.

The law targets buildings with four or more units that are in distress and aims to help preserve affordable housing and keep residents in their homes.

Under COPA, the city's Department of Housing will maintain a list of nonprofits experienced in managing affordable housing and capable of purchasing and maintaining these properties.

When an eligible building is put up for sale, nonprofits have 20 days to express interest, followed by a series of deadlines for offers and counteroffers before the property can be sold on the open market if no agreement is reached.

The legislation is designed to prevent predatory investors from acquiring these buildings and to support tenants by placing ownership in responsible hands. Mayor Mamdani said the law will give New Yorkers a tool to keep their homes out of the hands of predatory investors seeking to make a quick and easy buck. Councilwoman Sandy Nurse, the bill's sponsor, said COPA is an anti-displacement tool to get at-risk buildings into the hands of trusted housing organizations.

COPA will take effect one year after enactment, allowing the Department of Housing Preservation and Development to establish implementation rules.