NYC Council Passes COPA, Sending Distressed-Building Sale Rules to Mayor

Council approval

The New York City Council passed the Community Opportunity to Purchase Act, or COPA, on Oct. 22, 2026, by a 38-9 vote, with two abstentions. The bill now heads to Mayor Zohran Mamdani; Bisnow reported that it was expected to be signed.

COPA would require owners of specified distressed multifamily properties to give nonprofit entities a right of first refusal when a building is offered for sale. Nonprofits may participate alone or with a joint-venture partner. The city estimates that as many as 2,100 apartment buildings could be affected.

Which buildings are covered

The measure is aimed at smaller buildings and properties with HPD regulatory agreements, rather than the broader universe contemplated in earlier proposals. Covered categories include buildings with four or more units—or five or more if an owner occupies an apartment—that meet particular distress criteria.

Those criteria include prolonged building problems such as disrepair; at least a year in the city’s alternative enforcement program; in rem foreclosure distress; or high counts of Class B or C violations, including conditions such as leaking ceilings and vermin infestations. A building denied an HPD certification of no harassment within the prior year may also qualify if the underlying conditions remain uncorrected.

Buildings with up to 100 dwelling units that are subject to affordability restrictions are included. Properties receiving as-of-right incentives such as 421-a or 485-x are exempt.

Revised process and enforcement

The final legislation shortens the qualified buyer closing period to 145 days, from 160 days in the version introduced in May. It also removes a provision that would have allowed HPD to add covered building categories, although the department may recommend categories.

HPD must annually notify owners whose buildings meet the criteria. Owners can appeal by arguing that their building problems stem from financial hardship.

An owner who sells a covered property without notifying the city could face a penalty capped at 15% of the sale price. Enforcement is subject to a two-year statute of limitations, so an action could not be brought more than two years after the sale.

Competing views

Supporters, including bill sponsor Council Member Sandy Nurse, said COPA can help preserve existing housing, create public oversight of troubled properties and give community-based groups earlier visibility into potential acquisitions. East New York Community Land Trust representatives said the 145-day period is important for nonprofits that must assemble financing, while also saying narrower eligibility rules will make participation harder.

Landlord and real estate industry groups continued to oppose the measure. They argued it may complicate transactions, reduce the pool of buyers for distressed properties and delay sellers facing acute financial pressure. Other industry voices said the revisions made the bill less expansive, and that owners able to maintain lower violation counts would generally remain outside its reach.