In a significant move on his final day in office, Mayor Eric Adams vetoed the Community Opportunity to Purchase Act (COPA) and 18 other bills. This decision has sparked immediate reactions from both landlord groups, who celebrated the vetoes, and housing advocates, who expressed strong disappointment. The vetoes affect several measures aimed at reshaping New York City's housing landscape, including those setting new rules for city-financed developments and a controversial bill granting nonprofits first dibs on certain multifamily buildings.
Key Takeaways
- Mayor Adams vetoed COPA and 18 other bills on his last day.
- COPA would have given nonprofits a first purchase option on specific multifamily buildings.
- Real estate groups praised the vetoes, citing concerns over slowed sales and reduced investment.
- Housing advocates and City Council members criticized the move, calling it a setback for affordability.
- The vetoes also targeted bills establishing minimum unit sizes and affordability requirements for city-financed housing.
The Community Opportunity to Purchase Act
The Community Opportunity to Purchase Act, or COPA, was a central point of contention. This measure aimed to give city-approved nonprofits and joint ventures the first chance to buy certain multifamily buildings. These buildings included those in distress or with expiring affordability requirements. Proponents argued COPA would help preserve affordable housing and empower community groups.
The bill would have required owners selling multifamily buildings with four or more units to first notify the city. This notification would go to a list of approved prospective buyers. These buyers would then have 25 days to express interest. After that, they would get 80 days to submit an offer. If a competing bid emerged, qualified entities had another 15 days to match it.
COPA Details
- Eligible Buildings: Multifamily buildings with four or more units.
- Target Properties: Distressed buildings or those with expiring affordability rules.
- First Right: City-approved nonprofits and joint ventures.
- Notification Period: Owners notify city and approved buyers first.
- Offer Period: 80 days for interested entities to submit an offer.
- Matching Clause: 15 days to match a competing bid.
Reactions from Real Estate and Housing Advocates
The vetoes drew immediate and contrasting responses. Real estate organizations largely celebrated Mayor Adams' decision. Jim Whelan, President of the Real Estate Board of New York (REBNY), stated that the mayor’s action “prevented our housing supply crisis from worsening and the cost of housing from becoming even more unaffordable.” Ann Korchak of the Small Property Owners of New York echoed this sentiment, remarking that “sanity prevailed.” These groups had consistently argued that COPA would hinder property sales and discourage investment in the city’s housing market.
Conversely, housing advocates and several City Council members expressed strong disapproval. Zohran Mamdani, a prominent voice for housing reform, had championed COPA as a vital tool to address issues with landlords. The veto creates uncertainty for his housing agenda, which aims to build 200,000 new affordable housing units over the next decade. The City Council could attempt to override the vetoes, but the path forward remains unclear.
"It is unsurprising that this mayor is ending his term by demonstrating, once again, that protecting and supporting working-class New Yorkers is not his priority," said Speaker Adrienne Adams in a statement. "The vetoes put special interests above greater affordability and opportunity for hardworking New Yorkers."
Other Vetoed Housing Measures
Beyond COPA, Mayor Adams also vetoed 18 other bills, including three that would have imposed new restrictions on city-financed housing projects. These bills aimed to establish minimum percentages for specific unit types:
- Units with two- and three-bedrooms.
- Units affordable to New York’s lowest-income residents.
- Units designated for homeownership.
Impact on Affordable Housing Goals
The administration estimated these bills would add approximately $600 million to the Department of Housing Preservation and Development’s annual budget needs. This added cost was a primary concern cited by the mayor. Such increases could potentially complicate efforts to expand affordable housing options across the city.
One notable exception to the vetoes was the Construction Justice Act. This bill mandates a minimum wage of $40 per hour in wages and benefits for construction workers on certain housing projects. These projects must have 150 units or more, construction costs exceeding $3 million, and receive at least $1.5 million in city financing. While the administration had voiced concerns about the cost, estimated at $425 million of the total $600 million in added budget needs, the mayor did not veto this specific measure.
Additional Vetoes and Council Relations
The mayor’s veto power extended to other areas as well. He vetoed a bill that would have set minimum wages for building security guards. REBNY had also raised concerns about the legality of the city setting wages for these guards. Another vetoed measure would have allowed the city to sell tax liens to a land bank instead of a private trust. This change aimed to give the city more control over distressed properties.
A bill setting time limits for co-op boards to respond to prospective residents was also vetoed. This measure sought to streamline the application process for those looking to live in co-op buildings. The security guard, land bank, and co-op application bills all passed the City Council with a supermajority, indicating strong legislative support.
These vetoes highlight a strained relationship between Mayor Adams and City Council Speaker Adrienne Adams, particularly over the last two years. The housing bills were passed at the City Council’s final meeting of the year, following an unsuccessful push against three ballot measures approved in November. The Council had called these measures, which reduced its influence over land use decisions, an unlawful power grab by the administration.
The incoming City Council and presumed Speaker Julie Menin now face the decision of whether to attempt to override these vetoes. Most of the housing bills had passed with a supermajority, making an override possible. However, COPA itself only secured 30 votes, making an override less likely for that specific bill. Menin, who abstained from voting on COPA, has indicated the Council is considering its "next steps."
The outcome of these legislative battles will significantly shape the future of housing development and affordability in New York City. The next administration and City Council will need to navigate these complex issues, balancing the concerns of property owners with the pressing need for more affordable housing options for New Yorkers.
