Imagine you own an apartment building and need to sell it. The mortgage comes due, insurance premiums keep climbing, repairs cannot wait, and you have found a willing buyer. You have negotiated a price and are ready to close. Then New York City tells you to wait.
Your financial obligations do not wait. Your buyer may not wait. But under New York City’s Community Opportunity to Purchase Act, known as COPA, the government can insert a lengthy process between you and the sale of your own property. What should be a private transaction becomes subject to a timetable designed to give selected organizations an opportunity to purchase the building first.
This is the kind of incremental change worth examining. Socialism does not always announce its arrival with bullets and revolution. Sometimes it arrives as a statute that sounds reasonable, addresses a genuine concern, and changes the rules one transaction at a time.
On October 22, the New York City Council passed COPA by a vote of 38 to 9, with two members abstaining. Mayor Zohran Mamdani has championed the measure. The revised bill is narrower than earlier proposals and is expected to cover roughly 2,100 multifamily buildings meeting specified conditions involving serious housing violations, city enforcement programs, or affordability restrictions. Qualifying owner-occupied buildings with five or fewer units are exempt. The law is scheduled to take effect one year after enactment.
Under COPA, owners of covered properties are mandated by to inform the city’s Department of Housing Preservation and Development when they intend to sell. Qualified nonprofit organizations have 20 days to express interest and another 70 days to submit an initial offer. Additional procedures can give a qualified organization the right to match an outside buyer’s offer. A legal analysis by Cullen and Dykman estimates that the process can delay a transaction by approximately 130 days when the applicable stages are triggered. The final timetable depends on the transaction and the rights exercised. Owners may apply for an exemption based on undue financial hardship, but that exception does not eliminate the underlying process.
For an owner facing mounting expenses, those delays are not abstractions. Mortgage payments, taxes, insurance, utilities, and repairs continue regardless of what the city requires. A willing buyer may move on. A deal that could have helped an owner meet financial obligations may disappear while the government process runs its course. Ann Korchak, president of Small Property Owners of New York, has warned that COPA could contribute to the extinction of small property owners. Her concern deserves attention. A policy intended to preserve affordable housing can impose new costs and risks on the people responsible for maintaining the buildings in the first place.
