New legislation could change how certain multifamily properties are sold, introducing additional requirements, longer timelines, and new considerations for real estate professionals.

In New York real estate, timing is everything. Now, proposed legislation could add months to certain multifamily property transactions.

On October 22, 2026, the New York City Council voted 38-9 to approve a revised Community Opportunity to Purchase Act (COPA). The legislation would give qualified nonprofit organizations an opportunity to purchase certain distressed and affordability-restricted multifamily properties before they are sold to other buyers.

According to citybiz, approximately 2,100 buildings could initially be affected.

The legislation aims to preserve affordable housing and expand nonprofit ownership. However, it also raises important questions for real estate attorneys, brokers, investors, and lenders.

Here’s what industry professionals should understand.

Which Properties Would Be Affected?

COPA would apply to certain Class A multifamily buildings containing four or more residential units that meet specific criteria.

Potentially covered properties include:

  • Buildings enrolled in HPD’s Alternative Enforcement Program for at least one year.
  • Properties facing in rem foreclosure proceedings.
  • Buildings with longstanding orders to correct underlying housing conditions.
  • Properties averaging three or more open hazardous or immediately hazardous violations per residential unit.
  • Buildings recently denied a certification of no harassment without subsequent remediation.
  • Certain buildings with 100 or fewer units subject to HPD affordability restrictions.

Owner-occupied buildings with five or fewer units would be exempt.

Certain transactions, including refinancings, bankruptcy sales, qualifying family transfers, and specified ownership restructurings, would also be exempt.

The key consideration: Determining whether a property is subject to COPA could become an important early step in transaction planning.

How Could COPA Affect Transaction Timelines?

One of COPA’s most significant implications is its potential impact on how quickly properties can be marketed and sold.

Under the revised legislation, owners of covered properties would need to notify the New York City Department of Housing Preservation and Development (HPD) and qualified nonprofit organizations before proceeding with a sale.

The process would include:

  1. 20 days for qualified nonprofits to express interest.
  2. 5 days for owners to provide specified property information.
  3. 70 days for interested nonprofits to submit an offer, with a possible five-day extension.
  4. 10 days for owners to respond to offers.
  5. 30 days for contract execution.

According to legal analysis cited by citybiz, these requirements could delay marketing by approximately 130 to 135 days.

The legislation would also establish a limited right of first refusal. If an owner rejects a nonprofit’s offer and subsequently intends to accept another buyer’s offer within one year, the nonprofit would have an opportunity to match the terms.

For sellers, investors, and lenders, these additional requirements could affect financing commitments, carrying costs, and projected closing dates.

What Should Industry Professionals Consider?

COPA could introduce new responsibilities across the real estate transaction process.

Real estate attorneys may need to evaluate property eligibility, applicable exemptions, notification requirements, and contract provisions earlier in the process.

Commercial brokers may need to adjust marketing strategies and manage client expectations regarding listing and closing timelines.

Investors and developers may need to account for additional holding costs, financing considerations, and uncertainty surrounding acquisition schedules.

Lenders may need to assess how extended transaction periods could affect borrower obligations and collateral disposition strategies.

Compliance could also carry substantial financial consequences. As reported by citybiz, owners who fail to meet applicable notification requirements could face penalties of up to 15% of the property’s sale price.

For professionals handling multimillion-dollar transactions, overlooking a potential compliance issue could prove costly.

Why Early Due Diligence Matters

COPA reinforces an established principle of successful real estate transactions: Identifying potential problems early is far less expensive than resolving them at the closing table.

Properties may have regulatory agreements, unresolved violations, ownership complications, or recorded restrictions that require further investigation.

Before proceeding with a potentially affected transaction, professionals should consider whether the property meets COPA’s coverage criteria, whether an exemption applies, and how any required notification periods could affect the transaction.

Coordinating with experienced legal, title, and financing professionals early can help identify potential obstacles and establish realistic expectations.

Although title research does not replace legal analysis of COPA eligibility, thorough due diligence remains an essential component of informed transaction planning.

The Cornerstone Advantage: Proactive Support for Complex Transactions

Regulatory changes are nothing new in New York real estate. What matters is having experienced professionals who can anticipate challenges and help address them before they disrupt a transaction.

At Cornerstone, we understand that successful closings require more than title insurance. They demand careful research, proactive communication, and coordination among professionals who understand New York’s complex real estate environment.

With experience gained from more than 17,000 transactions, Cornerstone provides comprehensive title due diligence supported by in-house legal expertise. Our team works to identify liens, easements, covenants, restrictions, and other title-related matters that could affect a transaction.

We collaborate closely with real estate attorneys, brokers, lenders, and investors to help minimize surprises and keep transactions moving efficiently.

As legislation like COPA introduces new considerations for multifamily property transactions, experienced title support becomes even more valuable.

The earlier Cornerstone becomes involved, the more opportunity we have to help.

Whether your clients are buying, selling, refinancing, or developing New York real estate, Cornerstone delivers the transparency, expertise, and responsive service that complex transactions demand.

Partner with Cornerstone. Because when the rules change, preparation and the right professional relationships can make all the difference.