Release: NYAA Submits Testimony Opposing COPA
Community Opportunity to Purchase Act Would Distort Multifamily Housing Industry, Hurting Renters and Property Owners
(New York, NY) – The New York Apartment Association (NYAA) submitted testimony today before the City Council in opposition to Intro 902, also known as the Community Opportunity to Purchase Act (COPA). The goal of this bill is to make it easier for non-profit organizations that have been approved by the city to buy buildings that are up for sale. The reality is that the bill would create a lengthy and complicated government scheme that will make housing worse for both renters and property owners.
“If the goal is to help non-profits buy apartment buildings, then let’s create a bill that actually helps non-profits. This bill just creates a complicated government process that will throw the entire market into chaos,” said Kenny Burgos, CEO of NYAA. “Making a private owner hold a building for more than a year just so a non-profit has a chance to purchase it will cause a ripple effect of negative consequences that the City Council needs to consider.”
Under the bill, a property owner looking to sell their building would be forced to make the building for 180 days to a list of approved non-profits. After that time, they can list the building for sale to anyone, but if an offer is accepted the government-certified non-profits would have the right to match the purchase price for 90 days. After the government certified non-profit announced their intent to match the price, they have an additional 90 days to secure funding to make the purchase. If they fail to secure the funding, the owner can move forward with the sale to a buyer, a full year after the initial intent to sell.
“Our members have no problem selling buildings to community-led non-profit entities. Everyone should have a fair shot at purchasing a building. This system doesn’t do that though. It creates an overly complicated and inefficient government process that is ripe for corruption,” said Burgos.
COPA has been tried in San Francisco, where an independent analysis found that it can be effective with reasonable time limits that are in line with normal business practices. Additionally, the program in San Francisco benefited from financial support that allowed non-profits to quickly secure funding. One non-profit housing provider summed up the program like this:
“If you don’t have financing in place or developers with capacity to do these deals, it does look like you just want to frustrate landlords and give them extra paperwork.”
NYAA urges the City Council to delay the passage of Intro 902 and work with stakeholders to craft a program that will be effective in promoting community-based non-profit ownership without the destructive impact on multifamily housing.
View our testimony on Intro 902 here.
The New York Apartment Association (NYAA) is a 501(c)(6) not-for-profit organization that represents a diverse coalition of apartment building owners and managers who provide the majority of affordable multi-family housing in the state of New York. To put it simply, we are Housing New York. The official NYAA website is HousingNY.Org. @HousingNY on X; @HousingNY on Instagram; @HousingNY on Youtube, and @HousingNY on TikTok.