New York City Mayor signs law giving nonprofits first right to buy buildings

New York City Mayor Zohran Mamdani signed the Community Opportunity to Purchase Act (COPA) into law, which grants nonprofits and community groups the first opportunity to bid on specific properties.

The law will take effect in November of 2027. Under the new law, building owners must notify the city housing department when they intend to sell certain properties.

These include distressed multifamily buildings with four or more units and buildings with 100 or fewer units that are subject to specific affordability rules. Eligible nonprofits and community groups have 20 days to submit a statement of interest and 70 days to make a first offer before a private buyer can purchase the property. The law also gives these groups a right of first refusal if an owner receives an offer from an entity that is not a qualified nonprofit.

The City Council passed this version of the bill after a previous version was vetoed by former Mayor Eric Adams. Council member Sandy Nurse, the bill's main sponsor, argued that the city cannot build its way out of the housing crisis and needs to preserve existing buildings. This current version of the law applies to 2,100 buildings, a reduction from a previous proposal that covered 10,000 buildings.

Critics of the law argue that it adds bureaucratic layers to the housing market and may discourage private investment by creating timing delays and legal costs. Some observers note that nonprofits still have the legal right to evict tenants and may not be better equipped to handle maintenance issues like leaky roofs or cold boilers. Others argue the law does not change the underlying economics of operating distressed buildings.