Violations & compliance · 10/23/2026
COPA passed the Council. Now HPD has to write the rules
The City Council passed the Community Opportunity to Purchase Act with substantial changes. HPD, led by Commissioner Dina Levy, now has to set out how it will work. Alpha Realty's Lev Mavashev warns that distressed buildings already struggle to find buyers, and expects sales to stall while the market waits for HPD's rules.
Reported by The Real DealRead the original ↗
What happened
The Community Opportunity to Purchase Act, known as COPA, has passed the New York City Council with substantial changes, The Real Deal reported in its Policy Pro newsletter dated Oct. 22, 2026. The next step is implementation. The Department of Housing Preservation and Development (HPD), led by Commissioner Dina Levy, now has to put the law into practice and clarify how its rules will work.
Some in the sales market are worried. Lev Mavashev, a principal at Alpha Realty, told The Real Deal that distressed buildings are already hard to sell. Many need capital for repairs, which limits buyer interest. "You're just adding another layer of making things difficult on selling these buildings," he said. He worries that uncertainty about COPA could scare off the few buyers willing to take these properties on.
According to The Real Deal, lenders are driving many of these distressed sales. Mavashev expects the law's passage to put deals on hold while the market waits for HPD guidance. "It's going to be pencils down. Let's wait and see before we make any moves," he said.
The same newsletter pointed to other coverage. A Real Deal column by Erik Engquist says NYC landlords are drawing the line on one-shot deals amid mounting losses and tenant arrears. Gothamist reported that the City Council plans to question the city at an upcoming hearing about why a $650 million deal to redevelop the Hunts Point Produce Market in the South Bronx fell apart over the summer.
Key facts
- Law
- Community Opportunity to Purchase Act (COPA)
- Status
- Passed the City Council with substantial changes
- Implementing agency
- Department of Housing Preservation and Development (HPD)
- HPD commissioner
- Dina Levy
- Market view
- Alpha Realty's Lev Mavashev expects distressed-building deals to pause until HPD clarifies the rules
- Who drives many sales
- Lenders, in the distressed-building market, per The Real Deal
- Report date
- Oct. 22, 2026 (The Real Deal, Policy Pro)
What it means
Buyers and owners
Owners trying to sell distressed buildings may see buyers wait until HPD explains how COPA will work. One broker expects a "pencils down" period for these deals.
Landlords
Small landlords planning a sale should expect rules that are not yet fully defined. It is worth tracking HPD guidance before setting a timeline.
Caseworkers
A Real Deal column reports landlords are pushing back on one-shot deals amid arrears and losses. Caseworkers may meet more resistance when arranging arrears assistance, though the column's details are not given here.
The highlights
- The City Council passed COPA with substantial changes to the bill.
- Broker Lev Mavashev says COPA makes hard-to-sell distressed buildings even harder to sell.
- He expects lender-driven sales to pause until HPD clarifies how the law works.
Why it matters Landlords
Owners planning to sell, especially distressed buildings, may face delays and fewer buyers until HPD issues COPA rules.
What to do: If you plan to sell a building, watch for HPD guidance on COPA.
Not known yet
- What the substantial changes to COPA were and which buildings the final law covers
- When the law takes effect and when HPD will issue rules or guidance
- Which organizations would qualify to make offers under the law and how much time they would get
- Whether the mayor has signed the bill
Background
Opportunity-to-purchase laws, in general, give designated nonprofit or community buyers a chance to make an offer on certain residential buildings before an owner sells to someone else. In New York City, when the Council passes a housing law, HPD often handles the details through rules, notices and procedures. Owners and buyers usually look to that agency guidance to understand deadlines and obligations.
Summary written by Bulwark from The Real Deal’s reporting. The original story is at therealdeal.com. This is general information, not legal advice.
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Photo: Andre Carrotflower, CC BY-SA 4.0