NYC COPA Law: What Building Owners Need to Know Before Selling

The NYC COPA law, short for the Community Opportunity to Purchase Act, passed the New York City Council on October 22, 2026, by a vote of 38 to 9, and Mayor Zohran Mamdani has said he will sign it. It gives HPD-certified nonprofits the first chance to buy certain residential buildings when the owner decides to sell. It takes effect one year after it is signed.

Headlines may make it sound like every multifamily building in the city is affected. It isn’t. The City Council’s own estimate is about 2,100 buildings, and HPD’s revised estimate is about 3,400. Either way, that is a small slice of the city’s apartment buildings, and one-, two- and three-family homes are not covered at all. This guide explains which buildings the law reaches, which ones it leaves alone, how the sale process works for a covered building, what it costs to skip the rules, and what to do now if you own a multifamily building and are thinking about selling in the next year or two. It is general information, not legal advice, and the final details will also depend on the rules HPD writes during the year before the law takes effect.

What is the NYC COPA law?

COPA is a “first look” law. When an owner of a covered building decides to sell, the owner has to tell the city’s housing agency and a group of approved nonprofit buyers before putting the property on the market. Those buyers then get a defined window to say they are interested and to make an offer, and they keep a right of first refusal if someone else makes an offer instead.

Who gets the first look

The law calls them qualified entities. According to the City Council’s announcement of the vote, these are certain not-for-profit organizations, or joint ventures between not-for-profits and other entities, that the Department of Housing Preservation and Development (HPD) certifies. Community land trusts and mission-driven housing groups are the kind of organizations the law was written for.

What it is not

COPA does not let the city take a building. It does not set the price. It does not stop an owner from selling, and it does not apply to an owner who is keeping the building. It is a set of notice and timing rules that apply when an owner of a covered building chooses to sell. The owner still sells, and the buyer still pays, but the order of who gets to make the first offer changes.

The bill behind the name

The version that passed is Introduction 905-A, sponsored by Council Member Sandy Nurse. You may see it called Intro 905, Int. 905-2026 or simply COPA. The bill’s history, votes and text are posted on the Council’s legislation page for Int. 905.

Where the law stands right now

As of this update, the Council has passed the bill, and the mayor has said he intends to sign it. Once it is signed, there is a one-year runway before it takes effect. During that year, HPD is expected to write the rules that fill in the practical details: the notice forms, how qualified entities are certified, and how owners learn whether their building is on the list.

What that means for a sale this year

A sale that closes before the law takes effect is not subject to COPA’s process. An owner of a building that might be covered and who was already planning to sell in the near term has a decision to make about timing, and that is a conversation to have with a real estate attorney early, not in the last month before the effective date.

Why the dates matter more than the headlines

Coverage turns on a building’s record at the time of a sale. A building that is not covered today could become covered if violations pile up, and a building that might be covered today could fall outside the criteria if its problems are corrected. The one-year runway is time an owner can use.

Which buildings are covered by COPA?

This is the question that matters most, and it is where the final bill is much narrower than earlier versions. In general terms, a building has to pass two tests to be covered: a size test and at least one trigger that points to distress or an affordability agreement with the city.

Test one: the size of the building

The law is aimed at multiple dwellings with four or more units, or five or more units if one of the apartments is the owner’s primary residence. Reports on the final bill also describe four- and five-unit owner-occupied buildings as excluded, along with one- to three-family homes. If you live in your own small building, read the exemptions section below carefully.

Test two: at least one trigger

A building of that size is covered only if it also meets at least one of the specific criteria in the bill. Based on the published summaries of the final version, the triggers include:

• The Alternative Enforcement Program. The building has been in HPD’s Alternative Enforcement Program (AEP) for at least a year.
• A long-standing underlying condition. The building has an underlying problem, such as disrepair, that has lasted more than a year and is the subject of an HPD order.
• A high rate of serious violations. The building carries a high annual rate of hazardous (Class B) or immediately hazardous (Class C) housing code violations, measured against the number of units.
• A harassment finding. HPD denied the building a Certification of No Harassment within the past year, and the circumstances have not been remedied.
• Distressed and in foreclosure. The city has determined the building to be distressed and it is subject to an in rem foreclosure action.
• An affordability agreement. The building has up to 100 units and is subject to an affordability restriction, such as a regulatory agreement with HPD.

The exact thresholds, such as how many violations per unit trigger coverage, are written into the bill and will be applied through HPD’s rules. Published summaries do not all describe them the same way, so check the bill text and HPD’s guidance for your specific building rather than relying on a headline.

What the Alternative Enforcement Program is

The AEP is one of the most common reasons a building would be covered, so it helps to know what it means. HPD describes the Alternative Enforcement Program as a program for apartment buildings with many housing maintenance code violations. Each year, around January 31, HPD designates severely distressed buildings based on their Class B and C violations and emergency repair charges. To be discharged, owners must correct heat and hot water violations and a large share of their other serious violations, pay or arrange to pay outstanding charges, and keep a valid property registration. An owner who is in the AEP already knows it, because the program comes with inspections, orders and fees.

Which buildings and sales are not covered?

For most people reading about COPA, this section is the good news. The law leaves out the kinds of property that most New York City homeowners actually own.

Homes and small owner-occupied buildings

• One-, two- and three-family homes are not covered. The typical Queens two-family or Brooklyn three-family is outside the law.
• Small owner-occupied buildings. Reports on the final bill describe four- and five-unit buildings where the owner lives as excluded.
• Co-op apartments and condo units sold one at a time are individual apartment sales, not the sale of a whole rental building, and they are not what COPA is built for.

Transfers that are not a market sale

Transfers between family members are excluded, according to reports on the final bill. An owner leaving a building to children, or moving it into a family member’s name, is a different kind of transaction from listing it for sale.

Buildings with as-of-right tax incentives

Buildings that receive incentives through as-of-right programs such as 421-a or 485-x are reported to be exempt.

Owners who would face undue financial hardship

The Council’s announcement says owners can apply for an exemption from the bill’s requirements by demonstrating undue financial hardship. How that application works, what proof is needed and how long a decision takes are among the details HPD’s rules will need to spell out.

Buildings that are in good standing

A four-unit or larger building that is not in the AEP, has no long-open HPD order, has a low violation record, has no harassment finding, is not in an in rem foreclosure and has no qualifying affordability agreement is not covered, even if it is a rental building. Size alone does not trigger COPA.

How many buildings does the NYC COPA law affect?

Two numbers have been published, and they come from two different offices.

Advocates have also estimated that roughly 300 covered buildings are sold in a typical year. The honest takeaway is not the exact number but the scale: the final law reaches a few thousand buildings with serious violation histories or affordability agreements, not the city’s ordinary housing stock.

Why the number can move

Coverage depends on each building’s record. If violations are corrected and an AEP building is discharged, it can fall out of the criteria. If a building’s record gets worse, it can fall in. That is why the count will change from year to year, and why HPD is expected to notify owners of buildings that meet the criteria.

What this means for the fear headlines

If you own a house, a two-family, a co-op or a condo, COPA does not change how you sell. If you own a well-maintained rental building with no affordability agreement, it most likely does not either. The owners who need to pay close attention are the ones whose buildings have real violation histories, AEP status or regulatory agreements with HPD.

How a sale works under the NYC COPA law, step by step

For a covered building, COPA adds steps at the front of the sale. Here is the sequence as described in the Council’s announcement and in reporting on the final bill. HPD’s rules will set the forms and the exact mechanics.

Step one: notice before marketing

This is the step that matters most for an owner’s plan. The notice comes before the property is marketed. An owner of a covered building who lists first and notifies later is out of order, and that is exactly what the penalties described below are designed to prevent.

Steps two and three: interest, then an offer

A qualified entity has 20 days to submit a statement of interest. If it does, it has 70 days to submit a first offer. The owner is not required to accept that offer. The point of the window is that the nonprofit buyers get a real chance to make one.

Step four: the right of first refusal

If the owner turns down the qualified entity’s offer and later receives an offer from another buyer, the qualified entities have a right of first refusal. In practice, that means an owner should expect a covered sale to take longer and to involve more paperwork than a sale of a building outside the law. How long the right lasts and how it is exercised are details to confirm in the bill text and HPD’s rules for your sale.

What it means for your calendar

For a covered building, add several months to the front of the sale timeline. A seller who plans to sell in a particular season, or who has a purchase or a 1031 exchange depending on the sale, should build that time in before setting any dates. The general stages of a New York City sale, from listing to closing, are in the guide to selling a home in NYC.

What happens if an owner skips the process?

The law has teeth. Reporting on the final bill describes several enforcement tools.

A penalty of up to 15% of the sale price

Selling a covered property without notifying the city can bring a penalty capped at 15% of the sale price. On a building that sells for several million dollars, that is a number large enough to change the economics of the whole sale. This is the main reason an owner of a possibly covered building should confirm the building’s status before marketing it, not after.

Lawsuits and HPD enforcement

The bill includes a private right of action and HPD enforcement. Reporting on the final bill describes a two-year window, measured from the date the deed is publicly recorded, for actions over a sale that violated the law. That is two years in which a closed sale can still be challenged.

Why buyers and title companies will care

Because a non-compliant sale can be challenged after closing, expect buyers, lenders and title companies to start asking whether a building is covered and whether the COPA steps were followed. Sellers of buildings near the criteria should be ready to show the answer. Owners already familiar with how title issues can delay a closing will recognize the pattern from the guide to title insurance in NYC.

HPD notices, appeals and the hardship exemption

An owner should not have to guess. Reporting on the final bill says HPD must notify owners of properties that meet the criteria each year and allow appeals, including on the basis of financial hardship.

The annual notice

If your building is on HPD’s list, the expectation is that you will hear about it. Keep your property registration and your mailing address with HPD current, so that a notice reaches the right person. An owner who manages through a management company should make sure that company knows to forward anything about COPA right away.

Appeals

If you believe a building was placed on the list in error, for example because violations were corrected or a regulatory agreement has ended, the appeal process is where to make that case. Keep records of corrected violations, dismissed orders and recorded documents. They are the evidence an appeal will rely on.

Undue financial hardship

The Council’s announcement confirms that owners can apply for an exemption by showing undue financial hardship. If an owner needs to sell quickly, for example to settle an estate’s debts or to avoid a foreclosure, this is the provision to discuss with an attorney as soon as HPD publishes how it will work.

HPD’s reports

The Council’s announcement also says HPD must submit periodic reports on the program. Those reports should show how many buildings are covered, how many sales go through the process and how many end with a qualified entity buying. They will be the best way to judge how the law works in practice, rather than predictions from either side.

Who are the qualified entities?

The law is built around nonprofit buyers that HPD certifies. The details of certification will come from HPD’s rules, but the Council’s description gives the outline.

Nonprofits and joint ventures

Qualified entities are certain not-for-profit organizations, or joint ventures between a not-for-profit and another entity. The joint venture option matters because buying and renovating a distressed building takes capital, and many nonprofits work with financial or development partners to do it.

Certification by HPD

HPD must certify these organizations before they can use COPA’s first-look rights. An owner who receives a statement of interest should expect it to come from a certified group, and an attorney can confirm that it does.

They still have to pay

The qualified entity is a buyer. It has to make an offer, finance the purchase and close like any other buyer. COPA gives it time and a place in line. It does not give it a discount. Whether its offer is competitive is a question of the market and of each building’s condition.

How to check whether your building could be covered

Coverage comes down to records, and most of them are public. Before you list a building with four or more units, go through these with your attorney and your broker.

Violations and HPD orders

HPD keeps public records of housing maintenance code violations, their class (A, B or C), whether they are open or closed, and orders issued to the building. Count the open Class B and C violations, look at how they have changed over the past year, and look for any order that has been open for more than a year. Clearing old violations that were actually corrected but never certified is one of the most useful things an owner can do early.

AEP status

An owner whose building is in the Alternative Enforcement Program will have received notices and orders from HPD. If you bought the building recently, or inherited it, ask the prior owner or the managing agent for any AEP paperwork, and check HPD’s records.

Regulatory and affordability agreements

Many affordability agreements with HPD are recorded against the property. In the five boroughs, recorded documents can be searched in ACRIS, the city’s online land records system. An attorney can tell you whether an agreement is still in force and whether it is the kind that COPA counts.

Harassment and foreclosure history

A denied Certification of No Harassment or an in rem foreclosure action is not something an owner usually misses, but on an inherited or recently purchased building, it is worth confirming that neither appears in the record.

Put it in one file

Gather the violation printout, any HPD orders, AEP correspondence, recorded agreements, the certificate of occupancy and your current rent roll in one place. That file is what an attorney needs to give you a clear answer, and it is what a buyer will ask for anyway. Owners who expect to sell a building with repairs outstanding can also read the guide to selling a house as-is in New York, which covers how condition and disclosure affect price.

If you own a house, a two-family or a co-op

This is the group most likely to read a scary headline about COPA, and most likely not to be affected by it.

One- to three-family homes

One-, two- and three-family homes are excluded. Selling a Queens two-family works the way it did before: you list, you market, you take offers, you sign a contract and you close. The steps, costs and paperwork for that kind of sale are in the guide to Queens closing costs for buyers and sellers.

Small buildings where you live

If you own a four- or five-unit building and live in one of the apartments, reports on the final bill describe that as excluded. Because the size rule and the owner-occupancy rule interact, confirm with your attorney how your specific building is classified before relying on it.

Co-op and condo owners

Selling your own co-op apartment or condo unit is not a sale of a rental building. COPA is aimed at the sale of whole buildings with the distress or affordability triggers described above.

Inherited homes

Transfers between family members are excluded. If an estate later sells a covered multifamily building to an outside buyer, that sale is a different question, and the estate’s attorney should check the building’s status early. The guide to selling an inherited house in New York explains how estate sales are usually organized.

If you plan to sell a multifamily building in the next year or two

If you own a multifamily building and are thinking about selling in the next year or two, now is the time to find out where you stand. Whether your building is covered comes down to its violation record, its HPD history and its recorded agreements, all of which can be checked. Here is how I would approach it.

1. Find out first

Pull the building’s records and have an attorney review them against the bill’s criteria. A clear answer now is worth more than a guess later.

2. If the building is near the line, fix what can be fixed

Correct violations, certify corrections, and work through any HPD orders. Beyond COPA, a cleaner violation record makes a building easier to finance and easier to sell, because buyers and lenders look at the same records.

3. Plan the timing honestly

A sale that closes before the law takes effect follows today’s rules. A sale after that date follows COPA if the building is covered. Do not rush a sale only to beat a date if it means accepting the wrong price, and do not drift past the date without a plan if the building is likely covered.

4. Price with the process in mind

If the building is covered, the sale will take longer and may draw interest from qualified entities as well as private buyers. That can be an advantage: one more serious buyer at the table. The price still comes from comparable sales, rent rolls and condition. If you want a current estimate, ask me for a comparative market analysis, which is an opinion of value and not an appraisal.

5. Think about taxes early

A longer sale timeline can affect the year your gain is reported and any plans for a tax-deferred exchange. Talk to your accountant early. The guide to the capital gains tax on the sale of a home in New York covers the basics for owners.

What the COPA law means for buyers and investors

COPA also changes the picture for people buying buildings, especially buildings with problems.

Distressed buildings will take longer to buy

Many investors look for buildings with deferred maintenance, because that is where value can be added. Those are the same buildings most likely to meet COPA’s triggers. Expect more time between a listing and a contract, and expect nonprofit buyers to have the first look.

Due diligence gets a new line item

Buyers of multifamily buildings should ask whether the building is covered and, if it is, whether the notice and timing rules were followed. Because a non-compliant sale can be challenged for two years after the deed is recorded, this belongs in the contract review alongside violations and the certificate of occupancy. Buyers new to small multifamily properties can start with the guide to buying a multi-family home in Queens.

Most small-building purchases are unaffected

A buyer of a two- or three-family home, or of a well-kept four-unit building with a clean record, should not see COPA in the transaction at all.

How the COPA law got here

COPA has been a talking point in New York City housing politics for years, and the final version looks different from where it started.

The veto and the failed override

An earlier version passed the Council, and former Mayor Eric Adams vetoed it as one of his last acts in office after it failed to gain a veto-proof supermajority. When the Council tried to override the veto in January 2026, it did not have the votes.

A narrower bill in 2026

The bill was reintroduced as Int. 905 and amended before the final vote. Coverage was narrowed to buildings with distress triggers or affordability agreements, the estimated count fell from about 10,000 buildings in earlier versions to the figures above, a provision that would have let HPD add new categories of buildings on its own was removed, and the overall nonprofit window was shortened.

The vote and what comes next

On October 22, 2026, the Council passed Intro 905-A by 38 votes to 9, with two abstentions, and the mayor has said he will sign it. The next steps are the signature, a year of HPD rulemaking, and then the law taking effect. I will update this guide as those steps happen.

This article is general information, not legal advice. Consult a real estate attorney about your specific property. It reflects the bill as passed by the New York City Council on October 22, 2026, the Council’s announcement, the Council’s legislation record and reporting on the final bill; the law has not yet taken effect, and HPD’s rules may change how it applies. Real estate brokerage services are offered by Agatha Lubas, Licensed Associate Real Estate Broker, NY License #10301213345, Keller Williams Realty Liberty, 96-10 101st Avenue, Ozone Park, NY 11416. Cell (646) 250-6512. The NYS Disclosure Form for Buyer and Seller, the NYS Housing and Anti-Discrimination Disclosure / Fair Housing Notice, and the brokerage’s Standard Operating Procedures are available on request. Equal Housing Opportunity.

Agatha Lubas

Licensed Associate Real Estate Broker · NY License #10301213345 · Keller Williams Realty Liberty

Agatha Lubas works with buyers and sellers throughout Queens, Brooklyn, Nassau County and Suffolk County, including owners of two-families and small multifamily buildings, coordinating attorneys, lenders and managing agents from the first conversation to closing day. She serves clients in English and Polish.

Work with Agatha