NYC Passes COPA: What Brokers, Landlords, and Developers Need to Know

The Community Opportunity to Purchase Act (COPA) is moving forward in New York City. The City Council approved the bill on December 18, 2025, sending it to Mayor Eric Adams for final review. 

If signed, the law would give certain nonprofit groups a first opportunity to buy specific multifamily properties before they can be sold on the open market. 

Here’s what you need to know about what COPA does.

COPA requires owners of covered buildings to:

• Notify HPD (Housing Preservation and Development) before selling
• Give qualified nonprofits a first shot to make an offer
• Honor a right of first refusal if the owner later accepts a private offer within a year

It’s designed to help mission-driven organizations preserve affordable housing, but it also adds extra steps and timelines to any sale.

Which Buildings Are Covered? 

A property is covered only if it meets both of these tests.

1) The building type

• A Class A multiple dwelling (standard apartment building), and
• Four or more units (or five or more, depending on occupancy)

2) At least one of the following must apply:

• The building has income-restricted affordability under an HPD regulatory agreement that’s expiring within two years
• The building is in HPD’s Alternative Enforcement Program (AEP), the city’s list of its most distressed buildings
• The building has serious HPD enforcement actions or tenant harassment findings
• The building was denied a Certification of No Harassment (CONH) in the past year
• Or HPD later adds new criteria by rule

If a property doesn’t meet the building-type test or any of those conditions, COPA doesn’t apply.

Quick Facts on AEP

• HPD’s Alternative Enforcement Program currently includes about 250 buildings citywide, representing roughly 6,800 apartments and over 50,000 open code violations, according to HPD’s 2025 report. 
• These are some of the city’s most neglected properties, which is why AEP participation automatically triggers COPA coverage.
• COPA applies only after an owner decides to sell a covered property.

It kicks in only when:

• The building qualifies as covered, and
• The owner files an intent to sell with HPD

If the owner isn’t selling, COPA doesn’t affect financing, refinancing, or ownership. 

No sale = no COPA.

What Happens Next: 

COPA now heads to Mayor Eric Adams, who can:

• Sign it into law
• Veto it
• Let it become law without his signature

Adams has previously voiced concern about housing laws that might slow down development or deter investment, so a veto is possible. If that happens, the City Council can override with a two-thirds vote. 

If enacted, COPA would take effect one year after becoming law to give HPD time to write the rules.HPD’s Power to Expand COPA. 

One major piece to watch: HPD can expand coverage by rule. 

The law lets HPD:

• Add new qualifying categories
• Adjust how buildings are identified
• Require additional disclosures

That flexibility means COPA could eventually reach more properties than the initial categories listed in the bill.

The Bottom Line: 

• COPA isn’t a citywide rule. It targets a small segment of multifamily housing tied to HPD programs, enforcement, or harassment findings. 
• But because HPD can broaden the rules, and the sale process involves multiple notice and offer deadlines, owners, brokers, and investors should review each deal early to confirm whether COPA applies. 
• If you handle multifamily transactions in NYC, expect COPA to become a new due diligence checkpoint.