New Legislation Could Assist Nonprofits in Preserving Affordable Apartments in a Large City

New Yorkers voiced their frustration over soaring rents in last Novembers mayoral election, and the City Council is responding with a revamped strategy. The updated Community Opportunity to Purchase Act (COPA), a revision of a five-year-old bill, aims to empower nonprofits to acquire distressed apartment buildings before they are listed for sale.

According to City Limits, the legislation is expected to pass by years end, granting nonprofit organizations and community land trusts the first opportunity to purchase properties, ensuring affordability is maintained. Deyanira Del Rio, executive director of the New Economy Project, described COPA as a tool to move housing from speculative markets into permanent community control.

However, landlord associations and small-property owners have voiced strong objections. Ann Korchak, president of Small Property Owners of New York, criticized the bill as government interference in private market transactions, arguing that it gives certain nonprofits an unfair advantage.

If enacted, New York would join cities like Washington, DC, and San Francisco, which have similar programs. The legislation is also seen as a potential tool for Mayor-elect Zohran Mamdani to address housing affordability.

Under COPA, owners of qualifying buildings must notify the city and a list of approved nonprofit buyers before listing. These groups then have roughly 45 days to express interest and make an offer. Advocates argue that this first right is crucial to prevent at-risk affordable units from being sold to speculative investors who could raise rents.

The urgency is highlighted by the citys low vacancy rates. Overall, the vacancy rate is 1.4%, but for the most affordable unitsthose under $1,100the rate drops to 0.7%, emphasizing the scarcity of accessible housing. Since 2020, rising rents have driven many working- and middle-class residents out of the city, creating a growing need for measures like COPA.

Council Member Sandy Nurse, COPAs lead sponsor, emphasized that the legislation seeks to protect working-class families rather than the wealthy, putting communities back in control and countering speculative real estate practices.

Critics, however, argue COPA is not a comprehensive solution. Korchak recommends income-based rent exemptions and modifications to existing housing laws to make more rent-stabilized apartments available. She also warns that the bill could introduce delays and financial stress for small-property owners, who often lack the resources to absorb months of holding costs while waiting for nonprofit offers.

Lessons from Other Cities

Washington, DCs Tenant Opportunity to Purchase Act (TOPA), enacted over 40 years ago, has helped maintain affordability. Only about one in five units there is now fully market-rate, with the rest under some form of intervention such as rent control or public ownership. Yet median rents in DC remain high due to limited new construction.

San Franciscos COPA initiatives since 2019 have preserved nearly 500 affordable homes, safeguarding over 1,000 residents from displacement. While modest compared to overall need, these results demonstrate the potential of giving nonprofits priority in purchasing vulnerable properties.

Small Owners Concerns

Smaller landlords worry that COPA could complicate sales and delay cash flow, especially as many buildings are financially fragile. Even with exemptions for very small or owner-occupied properties, many 6- to 30-unit buildings remain vulnerable under the law. With the city planning rent freezes, these owners fear additional burdens just as they may need to sell.

For proponents, COPA represents an opportunity to stabilize communities and protect tenants. For small landlords, it could be an extra challenge during financially tight times. The legislation forces the city to grapple with a core housing question: Should distressed buildings be steered toward community control or sold through conventional market channels? The answer will significantly influence who can afford to remain in New York City.

Author: Riley Thompson