NYC Council Passes Watered-Down Bill Granting Nonprofits First Right to Buy Distressed Properties
The New York City Council passed the Community Opportunity for Purchase Act (COPA), a revised bill that grants nonprofits a 90-day exclusive window to purchase distressed properties before they hit the open market. This watered-down version, championed by Councilwoman Sandy Nurse, affects fewer than 2,100 buildings, a significant reduction from the previous proposal that targeted over 10,000. While real estate groups praised the narrowed scope, critics argue it still devalues properties and forces small owners to sell at low prices. The legislation replaces a prior version vetoed by former Mayor Eric Adams, with supporters claiming the changes address legal concerns while maintaining the core right-of-first-refusal mechanism.
Key points
- The Council passed the Community Opportunity for Purchase Act (COPA) on October 22, 2026, requiring sellers to delay listing distressed properties for 90 days to allow community land trusts and nonprofits to make offers.
- The new bill targets fewer than 2,100 buildings, a substantial reduction from the previous iteration that covered more than 10,000 properties, many of which were already managed by the city’s Housing Preservation Department.
- Councilwoman Sandy Nurse, who recycled the bill earlier in 2026, stated that the changes were made to strengthen the legislation after a third review, addressing potential legal challenges rather than constitutional issues.
- The Real Estate Board of New York (REBNY) shifted from opposition to support, with President James Whelan praising the 'constructive engagement' and 'targeted' nature of the revised bill.
- Critics, including Ann Korchak of Small Property Owners of New York, argue the bill devalues buildings and forces small, often immigrant, owners to sell for 'pennies on the dollar' by excluding conventional buyers who could rehabilitate the properties.
- Republican Councilwoman Joann Ariola previously criticized the initial proposal as an 'attack on private real-estate ownership,' warning of a shift toward government-controlled property and perpetual rentorship.
Background
This legislation follows a pattern of the NYC Council passing controversial housing and labor measures in 2026, such as the Delivery Protection Act targeting Amazon and the ban on Central Park horse carriages. The COPA bill is a revised version of a proposal vetoed by former Mayor Eric Adams, reflecting ongoing tensions between progressive housing advocates and real estate interests in the city.
Why it matters
The passage of COPA signals a shift in NYC housing policy toward prioritizing nonprofit acquisition of distressed properties, potentially altering the market for small property owners and influencing the future of affordable housing development. The reduced scope may mitigate immediate legal challenges but could set a precedent for broader interventions in private real estate transactions.
What to watch
The bill must now be signed into law by Mayor Zohran Mamdani. If enacted, it will take effect for the specified distressed properties, with owners having the option to sell on the open market after the 90-day window expires. Legal challenges from property owners or real estate groups may still arise, though the narrowed scope is intended to reduce such risks.
- NYC Council quietly passes bill that forces owners to give nonprofits first dibs on buying their properties for 90 days New York Post
- New York City Wants to Control Who Can Buy Troubled Housing. Here’s How. The New York Times
- Mamdani-backed housing bill will give nonprofits head start on buying NYC apartments Gothamist
- COPA passes City Council, ending six-year legislative battle The Real Deal
- Nyc Council Passes Act To Preserve Affordable Housing News12 | Bronx
Want the full story? Read the original reporting
Read on New York Post