Community Opportunity to Purchase Act Stirs Controversy

"Real estate industry sources say the bill, if enacted, could increase costs and add significant delays and complicate borrowing, which could affect property sales. The Community Opportunity to Purchase Act or COPA, also known as Intro 902, would require owners of buildings with three or more residential units to notify the Department of Housing Preservation and Development and a list of "qualified entities" when their buildings will be listed for sale, giving these nonprofits a first right of refusal to purchase a residential property."

"Nonprofits and affordable housing advocates such as the New York Community Land Initiative say the legislation, modeled after regulations in Washington, D.C., and San Francisco, would help "nonprofits to expand the supply of permanently affordable housing." Lead sponsor Council Member Sandy Nurse, who represents Bushwick, Brownsville, Cypress Hills, and other parts of east Brooklyn, said it would "level the playing field so we can have a fighting chance to preserve at-risk affordable housing.""

Council consideration of the Community Opportunity to Purchase Act (COPA) would give nonprofits greater access to properties for conversion to permanently affordable housing. COPA (Intro 902) would require owners of buildings with three or more residential units to notify the Department of Housing Preservation and Development and a list of qualified entities when listing for sale, granting nonprofits a first right of refusal. Nonprofits could submit the first offer and match competing bids. Industry sources warn the bill could increase costs, complicate borrowing, add delays, and extend closings by 180 days or more. Advocates say the measure would expand permanently affordable housing and preserve at-risk units.

Read at Brownstoner