Concerns Over Community Purchasing Opportunity Act
City councils are seemingly pushing private landlords to sell their properties to nonprofit organizations, which raises concerns about creating problematic housing situations that are difficult to manage.
They aim to finalize the Community Purchasing Opportunity Act (COPA) in the coming weeks, before the plan faces much-needed scrutiny.
This legislation would grant certain nonprofit groups and tenant associations the first choice to purchase multifamily rental buildings when they come on the market. This process could potentially prolong any sales by several months, leading to a reluctance among prospective buyers who might fear losing a deal at the last moment—among other hidden hurdles imposed by this approach.
Essentially, this setup seems tailored to benefit nonprofits that have the right political connections. Furthermore, these nonprofits would not have to pay city real estate fees, which would ultimately impact city revenues.
Turning to the record of some urban nonprofit affordable housing providers, the situation isn’t exactly encouraging. For instance, the RiseBoro Community Partnership has faced a staggering 2,388 violations from Housing Preservation and Development and over 14,000 tenant complaints since 2019. Notably, its CEO earns $570,000 annually, alongside additional benefits totaling $45,000.
Aside from that, COPA has placed the Housing Preservation and Development (HPD) agency in charge of overseeing the entire “matching bid” process, even though HPD is already stretched thin managing much simpler tasks.
Moreover, the City Comptroller’s Office recently criticized HPD’s oversight of a $432 million contract for the nonprofit organization DocGo, which has been responsible for housing asylum seekers. The agency has spent millions for rooms that ultimately weren’t rented, as well as unnecessary brokerage fees and payments to security firms that didn’t provide any service.
However, the complexities of COPA could make it even more susceptible to favoritism, fraud, and abuse than straightforward emergency contracts.
And don’t expect incoming Mayor Zoran Mamdani to magically fix the entrenched issues within HPD.
Those counting on Speaker-elect Julie Menin to temper Mamdani’s more extreme tendencies should remember she’s a co-sponsor of COPA.
If the City Council insists on moving ahead with this plan, it would be wise for Mayor Eric Adams to listen to the landlords and reject COPA altogether.
