Mayor Zohran Mamdani signed a new law on Nov. 10. It gives approved nonprofits the first chance to buy some New York City apartment buildings. The Community Opportunity to Purchase Act, or COPA, starts in November 2027. The City Council passed it 38 to 9 on Oct. 22. Republicans and several Democrats voted no. Then-Mayor Eric Adams vetoed an earlier version.
How it works
COPA covers buildings with four or more apartments. They must be in poor shape or have certain city deals to keep rents low. Poor shape includes an average of three or more serious code violations per apartment. Buildings with fewer than four units are exempt. So are owner-occupied buildings with five or fewer. City estimates run from 2,100 to 3,400 buildings.
An owner who wants to sell must first tell the city and every approved group. If no group shows interest in 20 days, the owner can sell to anyone. If one does, it gets 70 more days to bid, and no one else can buy in that time. The owner must share rents, finances and any other offers. If the owner says no, then for a year the group can take over any outside deal by matching its price and terms. Skipping the notice can bring a fine of up to 15% of the price.
What critics say
"The government should not be dictating how the people sell property," said Council member Vickie Paladino, a Queens Republican. She said the law "potentially reduces property value and will stall all sales." Ann Korchak of the Small Property Owners of New York said small owners would have to sell "for pennies on the dollar." The law lets owners turn down a group's bid. A group can beat an outside buyer only by paying the same price. Owners facing "undue financial hardship" can ask to be let out.
Korchak also said COPA will "illegally take private property." Frank Morano, a Staten Island Republican, called it unconstitutional. He said it "adds uncertainty" in a city "already struggling to attract investment." The sponsor, Council member Sandy Nurse, told the New York Post the old version had "points that could be sued over," but not "anything unconstitutional." No court has ruled.
Council member Joann Ariola, a Queens Republican, said of an earlier version that the city was "sliding headfirst into a communist dystopia." One critic told the Post that COPA "is just a foot in the door." The Real Estate Board of New York, which fought the earlier bill, called this one "more targeted and practical." The final law also dropped a clause letting the housing agency add kinds of buildings on its own.
Korchak blames government for the buildings' trouble. "Government policies like rent freezes set up small owners for failure," she said. In June, the rent board froze rents for 1 million rent-stabilized apartments. Most of its members were picked by Mamdani. The board's chair said "most owners" still meet rising costs. Mamdani blames speculators. He says the law keeps homes from "predatory investors seeking to make a quick and easy buck."
Some critics say the law helps political allies. John Ketcham of the conservative Manhattan Institute wrote in 2025 that an earlier version would "benefit nonprofit allies of the City's progressive leadership." Only charities with housing experience and money, or partnerships they control, can qualify. The city can drop one. Federal law bars these charities from campaigning for candidates, though they may lobby within limits.
Ketcham also called nonprofits' tax breaks "an effective subsidy paid by remaining taxpayers." A city program, Neighborhood Pillars, gives nonprofit buyers up to $380,000 per apartment, plus tax breaks. Mamdani has promised "a historic investment in affordable housing preservation." COPA itself sets aside no money to buy buildings. The Council's budget office says it will cost $170,000 a year to run. As of June, Pillars had not closed a single deal.
Townhall, a conservative site, also pointed to Cea Weaver, the mayor's tenant chief. In 2019 she wrote that private property, "kind of ESPECIALLY homeownership," is "a weapon of white supremacy." She later called those "regretful comments." Real estate publisher Amir Korangy said she has "no funding or authority to seize buildings."
Critics also doubt nonprofits will do better. Ketcham saw "little reason to think that nonprofits would be better at addressing cold boilers." Korchak said COPA "shuts out conventional buyers" with the money to fix a building fast. Nonprofits say they face "the same strains" as other owners. A Council staff report backing the bill cites studies showing nonprofits charge about 3% less rent and file fewer evictions.
Other cities
Washington, D.C., has let tenants buy first since 1980. In 2025 it dropped that rule for buildings with two to four units. One owner there told The Hoya the problem was letting "a tenant who isn't going to buy" still "delay or block a sale." New York Council staff say San Francisco's 2019 law preserved 436 homes by late 2025. They say sales there stayed among the nation's fastest. But they note San Francisco has a fast-cash fund for buyers that New York lacks.
Still unknown
The housing agency must still write the rules. It has not said which groups will qualify or how much public money will back them. Nurse says a trusted nonprofit can "buy the building, fix it up" and "keep the rent low." Yearly reports will show whether that happens.
Reporting through Wednesday, November 11, 2026. Sources: New York City Council, Int. 905-A record, roll call, final text, fiscal impact statement and committee report (Local Law 164 of 2026); HousingWire, Nov. 10, 2026; NY1, Nov. 10, 2026; Bisnow, Oct. 22, 2026; 6sqft, Oct. 23, 2026; Brick Underground, Oct. 22, 2026; City Limits, Sept. 14, 2026; City Journal, Dec. 17, 2025; Fortune, Jan. 7, 2026; Bisnow, June 5, 2026; Bisnow, June 25, 2026; The Hoya, Oct. 31, 2025; New York Post, Oct. 22, 2026; Townhall, Nov. 11, 2026; IRS.
