Mamdani Signs Law Giving Nonprofits First Opportunity to Buy Distressed NYC Properties

New York City is changing how certain distressed apartment buildings can be sold. Mayor Zohran Mamdani signed the Community Opportunity to Purchase Act (COPA) on November 10, giving qualified nonprofit organizations and community groups the first opportunity to purchase eligible properties before they reach the private market.

The law is designed to preserve affordable housing and prevent apartment buildings from falling into disrepair under negligent ownership. It covers multifamily properties with four or more units that meet specific distress criteria, as well as certain buildings with existing affordability restrictions.

Under COPA, qualified organizations will receive advance notice when an eligible property is put up for sale. They will have an initial period to express interest, followed by time to submit an offer. If another buyer later makes an offer within the following year, eligible organizations will also have the right to match it.

The city estimates that approximately 2,100 properties could fall within the program. Eligible buyers may include vetted nonprofit housing providers, tenant organizations and community land trusts. They must demonstrate that they have the financial and organizational resources to acquire, rehabilitate and manage the buildings.

What This Means for Landlords and Investors

The legislation could change the sales process for owners of qualifying apartment buildings. Rather than immediately marketing a property to private investors, sellers will have to follow COPA's notification and purchase procedures.

For investors, this introduces additional steps and potential timing considerations when evaluating eligible properties. However, the law does not prohibit private buyers from purchasing these buildings. If qualified organizations do not pursue a purchase or their offers are rejected, the property can still be sold on the open market.

Supporters say the measure will help protect tenants from displacement and keep existing affordable apartments available. Property-owner concerns, meanwhile, have centered on how the requirements could affect private property sales and transactions.

Implementation Comes Next

COPA follows approximately six years of advocacy and legislative debate. An earlier version was vetoed by former Mayor Eric Adams in December 2025 before the legislation was revised and passed by the City Council in 2026.

With the law now signed, the city's Department of Housing Preservation and Development will begin establishing a list of qualified organizations and procedures for notifying them about eligible properties.

The law does not create new apartments by itself. Instead, it focuses on preserving housing that already exists. Its long-term impact will depend on whether nonprofit organizations can secure financing, complete purchases and invest in the repairs needed to keep these buildings safe and affordable.

For New York's real estate market, COPA introduces a new consideration for owners selling distressed multifamily properties. It also gives community-based housing organizations a more formal opportunity to compete for buildings that could otherwise change hands through conventional private sales.