NEW YORK CITY— Landlords would have to give qualified nonprofit organizations an opportunity to pursue the purchase of certain residential properties before selling them to other buyers under legislation approved by the City Council on Thursday.
The Community Opportunity to Purchase Act, sponsored by Council Member Sandy Nurse, would give eligible nonprofits and qualifying partnerships an initial opportunity to express interest in buying covered properties and submit an offer.
Under the legislation, qualified organizations would have 20 days to submit a statement of interest and 70 days to make an initial offer.
If the property owner receives an offer from another buyer, a qualified nonprofit would have the right to match that offer and purchase the property under the same terms.
Property owners could seek exemptions by demonstrating undue financial hardship.
The City's Department of Housing Preservation and Development would oversee the program and issue periodic reports.
"After six years, multiple Mayors, and a veto, we finally passed COPA," Nurse said.
Mayor Eric Adams vetoed an earlier version of the legislation, opposing the measure over concerns about its potentialimpact on property owners and the housing market.
The Community Opportunity to Purchase Act is designed to preserve affordable housing, but it would not automatically create new affordable apartments or require every building purchased by a nonprofit to charge below-market rents.
Its effect would depend on whether nonprofits can secure financing, complete purchases and maintain affordable rents over time.
Nonprofits could also seek to preserve affordability through building management, renovations and long-term ownership.
Small Property Owners of New York, an organization representing small landlords, opposed the measure, arguing it could reduce property values and limit owners' ability to sell to conventional buyers.
"COPA, in any form, is a destructive housing policy for renters, owners, and affordable housing," Ann Korchak, the organization's board president, said.
Korchak argued the policy could reduce property values for small landlords, and give qualified nonprofits an advantage over other prospective buyers.
The bill requires owners of covered properties to notify the city and qualified organizations when they intend to sell.
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