NYC's COPA Proposal Is Back: What Multifamily Building Owners Need to Know

The Community Opportunity to Purchase Act (COPA) is moving through the NYC Council again, reintroduced on May 14, 2026, as Int. 0905-2026, with a mayor's office that has signaled it wants to sign it. The first version was vetoed by Mayor Adams in late 2025 and a Council override failed in January 2026. This version is leaner, but the core mechanism remains the same: before you can take a single step toward selling a qualifying rental building, you must first give certified nonprofits a structured opportunity to buy it.

Current Status

• Bill Number: Int. 0905-2026
• Status: In Committee (Not Yet Law)
• Reintroduced: May 14, 2026 (Committee on Housing and Buildings)
• Support: Strong mayoral support under the current administration

Who COPA Affects

COPA does not apply to condos, co-ops, or individually owned condo units. It specifically targets Class A multiple dwellings with 4 or more units, provided the building meets at least one of the following distress or affordability criteria at the time it is offered for sale:

1. Has been in the city's Alternative Enforcement Program (AEP) for at least 1 year.
2. Has been designated a distressed property subject to in rem foreclosure by the Commissioner.
3. Is under an order to correct an underlying condition for at least 1 year.
4. Has a violation annual daily average of 3 or higher (averaged open hazardous violations per unit per day over the prior year).
5. Has been denied a certification of no harassment within the past year with no cure.
6. Has 100 or fewer units with an affordability restriction set to expire within 2 years.
7. Meets any other criteria established by HPD through rulemaking.

Exemption: Owner-occupied small buildings are exempt. If you own a building with 5 or fewer units and live in one of them as your primary residence, COPA does not apply regardless of the other criteria.

Who Gets the Right – and What It Is

The right of first offer does not go to your tenants. It goes exclusively to HPD-certified non-profit entities that have gone through a formal certification process demonstrating legal and financial capacity to acquire and manage affordable housing. Joint ventures that include a certified nonprofit with a controlling interest also qualify. These organizations (such as community land trusts and affordable housing nonprofits) receive notice any time a covered property comes to market, giving them the first shot at submitting a bid before you can solicit offers from anyone else.

The Mandatory Sale Process Sequence

Day 0 — File Notice of Intent to Sell
Submit written notice to HPD and every certified nonprofit on HPD's published list. Must include rent roll, income/expenses, unit count, and other required information. You cannot solicit a single offer until this is done.

+20 days — Nonprofit Statement of Interest Deadline
Any certified nonprofit that wants to bid has 20 calendar days to file a statement of interest with HPD and you. Within 5 days of receiving one, you must hand over detailed financials (rent roll, mortgage balance, open violations, pending legal actions, any harassment findings).

+70 days — Nonprofit Offer Deadline
Each nonprofit that filed a statement of interest has 70 calendar days from the close of the statement-of-interest window to submit a formal bona fide offer. During this entire period, you cannot take any action to sell to anyone else.

+10 days — Owner Must Respond
You have 10 calendar days to notify each bidding nonprofit whether you accept, reject, or counter their offer. You must file this response in writing with HPD.

+30 days — Contract Execution Window
If you accept or counter a nonprofit's offer, you have 30 calendar days to execute a contract of sale. If no deal is reached within this window, you may proceed to the open market subject to the right of first refusal.

Minimum mandatory process before you can list publicly: 130 days.

The Right of First Refusal

Even after you complete the full 130-day process and reject every nonprofit offer, the first nonprofit that submitted a formal bid retains a right of first refusal for one full year. If you receive a third-party offer within that year that you want to accept, you are required to notify HPD and that nonprofit — who then has 15 calendar days to match the offer at the exact same price, terms, and conditions. If they match it, you are legally obligated to sell to them instead. In plain terms: a nonprofit you already said no to can follow your deal for a year and step in at the last moment to take it at your buyer's price.

The Penalty for Non-Compliance

Up to 15% of the Sale Price. If you sell a covered property without going through the COPA process, HPD can impose a civil penalty of up to 15% of the price you sold for. On a $3M building, that's up to $450,000. Furthermore, certified nonprofits have a private right of action: they can sue you directly in court and seek injunctive relief, legal fees, and costs.

What This Means If You Own a Qualifying Building

COPA targets buildings that already have regulatory problems — buildings in the AEP program, buildings under foreclosure action, buildings with high violation rates, or buildings with expiring affordability restrictions. If you own a clean, well-managed building, you may never trigger these thresholds. However, the criteria for what constitutes a "covered property" can be expanded by HPD through rulemaking without a Council vote, meaning the definition of who is subject to COPA is not locked in by the bill's text alone.

The bottom line: if your building has any open violations, any regulatory history, or any affordability obligations, you need to know whether COPA applies to you before you start thinking about selling. The process doesn't begin when you list — it begins the moment you decide to sell. Skipping it isn't a technicality; it's a six-figure penalty.

Int. 0905-2026 is in committee as of June 2026. It has not passed a final vote. But Mayor Mamdani's administration has publicly supported it, and a revised version cleared the Council once already. If you have been thinking about timing a sale, the window for a completely unrestricted transaction is open right now. It may not stay open.

Legal Disclaimer: Randy Reis is a licensed real estate salesperson, not an attorney. The information in this post reflects his personal opinion and professional experience as a real estate agent. It does not constitute legal advice. Please consult a qualified attorney for guidance specific to your situation.

Contact & Strategic Guidance
Randy Reis
Licensed Real Estate Salesperson, eXp Realty
Specializing in landlord-side rental listings and investor strategy for NYC multifamily owners.
Creator of the ReisNYC Fair Act.
Email: randy.reis@reisnyc.com | Phone: (917) 336-1118 | Web: reisnyc.com