Mamdani Signs Community Opportunity to Purchase Act, Giving Nonprofits First Chance at Distressed Buildings

Status: Mayor Zohran Mamdani signed the Community Opportunity to Purchase Act on Tuesday. amNewYork reports that the law takes effect in November 2027. The New York Post said it goes into effect one year from the Tuesday signing.

The law, known as COPA, gives qualified nonprofit housing organizations and community groups the first opportunity to buy certain distressed and affordable apartment buildings when an owner intends to sell. Mamdani signed it at a ceremony at Chestnut Commons in East New York, Brooklyn, alongside Council Member Sandy Nurse, who sponsored the measure, amNewYork and the New York Post report.

"This law will give New Yorkers a tool to keep their homes out of the hands of predatory investors seeking to make a quick and easy buck," Mamdani said ahead of the signing, according to amNewYork. The New York Post quoted him saying the legislation "will provide vetted community organizations with the right of first opportunity to make an offer on eligible buildings before they go to the open market."

Under the law, as described by amNewYork, owners of eligible buildings must notify the Department of Housing Preservation and Development and qualified nonprofit organizations when they intend to sell. Those organizations will have 20 days to express interest and 70 days to submit an offer. If a nonprofit's offer is rejected, it may later have a right of first refusal to match another buyer's offer, which can apply to qualifying offers made within the following year. The New York Post reported that a qualified nonprofit would then have 15 days to match a third-party offer and that, if it does, the owner would be required to sell to the nonprofit.

amNewYork reported that the legislation generally applies to residential buildings with at least four apartments that meet specified criteria, including serious unresolved housing violations, documented tenant harassment findings, or qualifying affordability agreements overseen by HPD. Owner-occupied properties with five or fewer apartments are exempt, as are buildings covered solely by affordability restrictions under the 421-a tax incentive program. The law does not force landlords to sell or guarantee that a nonprofit will be able to buy a building. Owners may still market a property and negotiate with other prospective buyers while nonprofits consider offers, though restrictions apply to completing a sale, amNewYork reported.

The signing follows a long legislative fight. Former Mayor Eric Adams vetoed an earlier version in December 2025, and the Council did not override that veto, amNewYork reported. Lawmakers then negotiated a narrower bill. Council Speaker Julie Menin said last month that the revisions reduced the estimated number of eligible buildings by nearly 80 percent, from approximately 10,000 to 2,100. The revised measure passed the Council on Oct. 22 by a vote of 38-9, with two abstentions. The New York Post reported that, after the bill was revised, it eventually received buy-in from some real estate groups.

Nurse, speaking before Tuesday's signing, described the measure's history: "Six years. Six years. Four introductions. Four hearings, three mayors, two times it was passed, one time it was vetoed." She called COPA an anti-displacement measure that would help community organizations acquire troubled buildings, make repairs, and preserve affordable apartments, amNewYork reported.

Supporters also said the law's success will depend in part on financing. Cea Weaver, director of the Mayor's Office to Protect Tenants, said the administration's budget includes more than $2 billion for affordable housing preservation over the next two years but did not specify how much would be available for COPA purchases, which do not have a dedicated acquisition-financing program, according to amNewYork. Michael Johnson, executive director of Cypress Hills Local Development Corporation, which hosted the ceremony, said, "opportunity alone isn't enough. Making preservation possible will take acquisition financing, preservation funding, and technical assistance." During the Council's consideration of the bill, lawmakers acknowledged that nonprofits can face lengthy delays obtaining city funding, potentially putting them at a disadvantage against private buyers, amNewYork reported. HPD will spend the next year establishing the program and certifying eligible organizations.

Landlord organizations have opposed COPA. On Tuesday, the New York Apartment Association pointed to a foreclosure auction of East Harlem buildings as evidence of financial pressure on owners, amNewYork reported. "Signing COPA into law the same day banks push 850 bankrupt rent-stabilized units to auction rather than accept an offer from a tenant-approved affordable housing developer is tragically ironic," said Kenny Burgos, the association's CEO. "We're missing the forest for the trees. The problem isn't who can buy these buildings; it's the rising expenses, two-year rent freeze, and tens of thousands of annual rent-stabilized vacancies driving properties toward financial collapse." amNewYork, citing Gothamist, reported that 38 deteriorating buildings with about 850 mostly rent-stabilized apartments were headed to a foreclosure auction after talks with an affordable-housing developer fell apart, and that COPA will not apply to judicially supervised foreclosure sales even after it takes effect.

Mamdani, asked about those talks and about financial support for competitive offers, said nonprofits have long said they could have purchased properties if they had a longer window to negotiate, amNewYork reported. "We do not tell ourselves that this, in and of itself, will solve the housing crisis at its root," he said. He did not announce additional acquisition funding in response to the question.

The signing comes the same day Quartz, citing the New York Times, reported that Mamdani has been meeting union leaders about a left-wing 2028 presidential candidate, as described in Mamdani Courts Union Leaders for a Left-Wing 2028 Presidential Candidate.

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