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NYC Council Moves COPA Plan Giving Nonprofits First Purchase Rights on Multiunit Buildings

An updated draft with majority sponsorship is slated for a Council briefing.

Overview

  • COPA would require owners of buildings with three or more apartments to notify HPD and a roster of qualified nonprofits before marketing a sale, giving those groups a first offer and the ability to match private bids.
  • HPD testimony indicated the proposal could touch roughly 90,000 buildings citywide and intersects with about 25,000 rental property sales each year.
  • Under the draft described in reports, nonprofits would have 60 days to declare interest and 120 days to submit a competitive offer, with the HPD commissioner permitted to extend deadlines for good cause.
  • The bill has 32 of 51 Council sponsors, and the lead sponsor has signaled an amended version will be presented in a web briefing, with the Mayor’s Office saying it is reviewing the measure.
  • Real-estate and small-owner groups warn the process could add about 180 days to closings, complicate financing, estate settlements and 1031 exchanges, and impose fines up to $30,000 for noncompliance.