The New York City Council has passed the Community Opportunity to Purchase Act (COPA) by 38 votes to 9. Following six years of intensive negotiations and an interim veto, the law grants non-profit organisations, whether independently or within joint ventures, a right of first refusal when rent-regulated residential buildings are sold. The municipal initiative aims to transfer parts of the housing stock from the private-sector portfolio into non-profit hands.
Bidding deadlines and economic hardship exemptions
The new regulation obliges owners wishing to sell to notify the municipal authority New York City Housing Preservation and Development (HPD) of planned sales. Non-profit bidders are then granted a 70-day window to submit a purchase offer. At the same time, however, the law includes significant relief for existing property holders: sellers can apply for an exemption provided they demonstrate unreasonable financial hardship.
Such a burden affects an increasing number of landlords of regulated apartments who face severe income pressure following the rent freeze introduced by Mayor Zohran Mamdani, which came into effect on 1 October. Furthermore, COPA applies exclusively to properties that have a high number of building violation notices from the HPD or the New York City Department of Buildings, or are part of a municipal renovation scheme. Since Mamdani had already publicly backed the initiative in May, the formal signing of the legislation into law is considered certain.
Criticism of structural pressures in the rental housing sector
Scepticism is growing in the New York real estate sector regarding the effectiveness of the model. Speaking to the Commercial Observer, Kenny Burgos, CEO of the New York Apartment Association, pointed out that non-profit operators struggle with financial difficulties despite largely being exempt from property tax. This underlines that the sector is not only suffering from revenue challenges, but is above all confronted with massive cost increases.
Burgos stressed that a combination of higher financing costs, lingering impacts of the pandemic, regulatory interventions, and rent freezes has made managing many holdings unprofitable. Rising insurance premiums and sharply increased energy costs are increasingly stripping owners of the liquidity required for maintenance. According to the New York State Division of Homes and Community Renewal, around 57,000 rent-regulated units stand empty across the city, representing a 70 per cent rise compared to the 2019 level.
Former Mayor Eric Adams vetoed COPA prior to leaving office, as the resolution lacked the required two-thirds majority. An attempt by the City Council to override this veto in January 2026 failed at the time due to insufficient support within the chamber.
