NYC Revives COPA Bill Targeting Distressed Multifamily

New York City lawmakers are making another push to pass the Community Opportunity to Purchase Act, reviving one of the city’s most closely watched housing proposals after a failed attempt less than six months ago, reports Bisnow. The revised COPA bill, introduced May 14 with support from 22 City Council members, would give nonprofits the first opportunity to purchase certain multifamily properties before they can be sold to other buyers.

The latest version significantly narrows the universe of affected buildings, aiming to address criticism from the real estate industry while preserving the bill’s core affordability goals. Supporters say the legislation could help mission-driven housing groups preserve affordable units and prevent tenant displacement in distressed buildings.

A Second Attempt After Adams’ Veto

Council Member Sandy Nurse first introduced COPA in 2024, framing the legislation as a tool to keep affordable housing in community hands. The proposal drew fierce opposition from landlords, brokers, and industry trade groups, which argued it would slow transactions, reduce liquidity, and discourage multifamily investment across the city.

The City Council passed a modified version of the bill in December 2025 by a 31-10 vote, according to Bisnow. Then-Mayor Eric Adams vetoed the legislation, and unlike several other vetoes issued during that period, the council did not override it.

The political environment has shifted since then. Mayor Zohran Mamdani has publicly supported COPA, with a spokesperson saying in February that the administration planned to work closely with Nurse to reintroduce and pass the bill.

The Revised COPA Framework

The updated legislation applies only to multifamily properties with four or more units that meet at least one distress-related condition. Those include buildings enrolled in the city’s Alternative Enforcement Program, properties facing in rem foreclosure actions, or assets averaging at least three open violations per day over the prior year.

The bill also covers buildings with unresolved chronic condition orders, owners denied certification of no harassment within the previous year, and smaller affordability-restricted properties with fewer than 100 units whose restrictions expire within two years.

Lawmakers also shortened timelines for nonprofit participation. Qualified entities would have 20 days to submit a statement of interest and 70 days to make an initial purchase offer, down from 25 and 80 days in the prior version.

The legislation further loosens partnership rules between nonprofits and private investors. Earlier drafts required for-profit partners to receive approval from the Department of Housing Preservation and Development. Under the revised proposal, nonprofits only need to maintain a controlling interest in the joint venture.

Enforcement provisions were softened as well. Sellers that fail to notify the city before a transaction would face penalties capped at 15% of the sales price, replacing the prior version’s uncapped court-determined fines.

Balancing Preservation And Investment Concerns

COPA mirrors similar housing preservation policies adopted in cities including San Francisco and Washington, DC, where tenant and nonprofit purchase rights have been used to preserve affordable housing stock. Supporters argue New York’s version is more limited because it focuses largely on distressed assets rather than the broader multifamily market.

Still, the proposal continues to raise concerns among landlords and investors. Industry groups warn mandatory notification periods and rights of first refusal could delay closings and complicate deals. The narrowed scope aims to ease those concerns while targeting financially stressed properties. That pressure has intensified across New York’s rent-stabilized sector, where several distressed portfolios have already faced foreclosure risk in recent months.

The narrowed scope appears designed to ease those fears while targeting buildings already under financial or operational stress. By focusing on properties with chronic violations or expiring affordability protections, the council is signaling that preservation — rather than broad market intervention — is the primary goal.

Why It Matters

New York still faces mounting affordability pressures, aging multifamily stock, and growing distress among rent-regulated properties. The New York City Rent Guidelines Board highlighted those trends in its 2025 Income and Expense Study. The report found operating costs often outpaced rent growth for stabilized buildings. As a result, many smaller owners now face heavier financial strain.

COPA could help nonprofits acquire at-risk affordable housing before speculative buyers step in. However, investors may face another layer of oversight under the proposed law. New York multifamily underwriting already faces pressure from high interest rates and strict rent regulations. Rising maintenance costs have also squeezed property owners across the city.

What’s Next

The City Council is expected to begin formal discussions on the bill this month, setting up what could become one of the city’s most consequential housing debates of 2026. With mayoral support now aligned with council leadership, COPA faces far better odds than it did during the Adams administration.

The biggest question will be whether the revised framework satisfies enough industry stakeholders to avoid another bruising political fight. If passed, the law could reshape how distressed multifamily properties trade in New York City and expand the role of nonprofit ownership in the city’s affordable housing ecosystem.