The Future of Affordable Housing in New York City

We need my Community Opportunity to Purchase Act now more than ever.

Think back for a moment to the Great Recession in 2008 — a recession spurred on by government tax breaks.

Right after that, private equity and hedge funds spent $36 billion to purchase more than 200,000 foreclosed homes across the US. The buyers converted so many into market-rate, investor-owned rental properties that they markedly decreased the country’s homeownership rate.

Now think of where we are in this moment, in 2021: We’re still fighting to stop a global pandemic that plunged us into yet another recession, with record unemployment. Recent estimates show that New York tenants owe over $1 billion in unpaid rent as COVID-19 continues to rage, and as a result, we’re poised to be dealing with an unprecedented eviction crisis later this year, the likes of which our city has never seen before.

This leaves us at an important crossroads for the future of affordable housing in New York City, and we can’t sit by and do nothing this time. We have a responsibility and an urgent mandate to build a future where affordable housing in all shapes and sizes remains possible.

Like we saw in 2008, the chaotic market in which we once again find ourselves has proven to be an opportune time for private equity and real estate firms to swoop in on cheaper properties with record low interest rates.

The question is, how will this Council prevent that from happening again?

A crucial part of the solution includes my bill, Intro. 1977–2020, the Community Opportunity to Purchase Act, or COPA.

COPA would give affordable and community housing developers — including supportive housing developers, which are vital to combating the homelessness crisis — Community Land Trusts, and other organizations a right of first refusal whenever landlords decide to sell apartment buildings or property. This would expand the playing fields for these organizations in the hypercompetitive New York real estate market, and in turn, give affordable housing opportunities a greater chance of success.

What these entities most often need is the time and flexibility to put together the necessary financing to make a fair market offer, which can be critical in a market where properties can change hands sometimes in a matter of days. COPA would be a game changer by giving them that time and flexibility to bring an offer to the table, as well as expanding their access to a greater number of potential listings.

To be clear, any seller in this case can still consider other offers, and is well within their right to reject an offer that is below market-rate. COPA would simply give affordable housing producers a fair shot.

Here’s the gist of what COPA would do:

1. Create a timeline where property owners would be required to consider offers from affordable housing developers, which is essential to giving qualified community organizations time to prepare their bid
2. Give community organizations an opportunity to identify their development partners, contractors, and prospective property managers
3. Improve efficiency and planning by ensuring awareness about the full range of properties available and having the guarantee that they will be considered just as seriously by a seller as a market-rate real estate developer would be

What’s even more compelling is that this isn’t some new idea. Cities like Washington, D.C. and San Francisco have had forms of COPA on the books for years now, and the legislation hasn’t interrupted the real estate market in either city. What it has done is allow for numerous affordable housing projects to move forward that otherwise might not have without COPA.

Of course, bold policies like COPA are not a silver bullet. This legislation will only be as effective as New York City is willing to invest the financial resources needed to support it. As we embark on the new budget season, it’s imperative that investments are made in community-led development to codify housing as a human right.

We must pass Intro. 1977 to protect those in affordable housing and provide them with an equal shot to both improve upon and continue their community development. New Yorkers deserve that, and the urgency of the crisis before us demands nothing less.