New York City has passed a new law aimed at giving nonprofit organizations a priority opportunity to purchase certain distressed residential buildings, a move supporters say could help preserve affordable housing amid rising costs. The legislation, known as the Community Opportunity to Purchase Act (COPA), was approved by the City Council on Thursday with 38 votes in favor, nine opposed, and two abstentions. Mayor Zohran Mamdani has indicated he will sign the bill into law.

COPA is designed to prevent predatory investors from acquiring vulnerable housing stock and displacing tenants. It grants a select list of qualified nonprofit buyers the right to be the first to submit offers on properties meeting specific criteria. These include buildings with at least four units that show signs of financial or physical distress, such as maintenance issues, or those with fewer than 100 units where affordable housing mandates are set to expire.

Under the law, property owners must notify the city’s housing department and the approved nonprofit list before selling such properties. A defined timeline then follows: nonprofits have 20 days to express interest, five days for sellers to provide additional information, 70 days to submit an offer, and 10 days for sellers to respond. Nonprofits have the right to match competing bids from other buyers, effectively giving them a first refusal option. If a sale is not completed within this timeframe, COPA no longer applies.

This legislation marks a scaled-back iteration of a similar bill that the City Council passed last year but was vetoed by then-Mayor Eric Adams. The current version narrows the scope of properties covered and accelerates the purchase timeline—from as long as 180 days under the earlier bill to a total of roughly four months. Proponents contend the changes result from thorough vetting and are not concessions to industry pressure, despite remarks from real estate representatives.

The bill’s chief sponsor, Council member Sandy Nurse, a Democrat from Brooklyn, emphasized the importance of preserving existing affordable housing to combat displacement, noting that building new units alone would not address the crisis. Housing Commissioner Dina Levy estimated that about 2,100 buildings could qualify under COPA, a significant reduction from the earlier estimate of up to 10,000.

Opponents, including major real estate groups such as the Real Estate Board of New York and the New York Apartment Association, have criticized COPA as a form of government overreach that could hinder the housing market. They questioned whether nonprofit entities are better equipped to maintain troubled properties and expressed concerns about the financial burden on the city to support these acquisitions. A study from New York University’s Furman Center highlighted the potential cost challenges involved in helping nonprofits buy and rehabilitate targeted buildings.

Still, Mayor Mamdani and supporters argue the bill empowers tenants and community organizations rather than leaving neighborhoods vulnerable to speculation and profit-driven displacement. They view COPA as a tool to slow gentrification and sustain long-term housing affordability in one of the nation’s most competitive real estate markets.