No. New York City's nonprofit priority bid law does not affect pending lawsuits. Sales, contracts and lawsuits pending before the 2027 start date proceed under prior law.
The law is the Community Opportunity to Purchase Act, or COPA. According to the NYC Council, the Council passed it on Oct. 22, 2026, by 38 votes after a six-year campaign led by Council Member Sandy Nurse, as described in the Council passage announcement. According to Cole Schotz, it takes effect one year after enactment following the mayor's signature, so it applies only prospectively, as explained in the Cole Schotz effective-date analysis.
Table of Contents
- What does COPA do?
- Why do pending cases stay under old rules?
- What will future sales require?
- What should you do with a pending matter?
What does COPA do?
COPA gives HPD-qualified nonprofits, community land trusts and approved joint ventures a first chance to bid on covered sales before an open-market sale. According to the NYC Council, covered owners are generally multifamily owners of buildings with four or more units showing sustained physical distress and buildings with HPD affordability restrictions, as described in the Council passage announcement. HPD estimates about 2,100 buildings fall in that group.
That first chance is an opportunity to offer, not a forced sale at a set price. An owner may reject a nonprofit offer, and the law fixes no purchase price. A later noncompliant sale can still expose the seller to a civil-penalty suit by a qualified entity.
Why do pending cases stay under old rules?
COPA does not reach back to undo completed steps. A sale notice sent, a contract signed, or a case filed before the effective date remains governed by the law in force at that time. That means a pending buyer, seller or tenant claim keeps its current deadlines, defenses and remedies.
This matters for compensation readers because timing controls the outcome. A pending contract dispute, deposit fight or sale-related damages claim will not gain a new COPA claim or defense. A future buyer cannot use COPA to reopen a pending case.
What will future sales require?
Future covered sellers must give notice of a proposed sale and pause for the nonprofit window. According to Cole Schotz, qualified entities get 20 days to state interest and 70 more days to make an offer, with total sale delay up to 145 days, as detailed in the revised sale-timeline summary. That maximum is down from 160 days.
Attorneys warn the process may still invite disputes over eligibility, pricing and transfer rights. For buyers and tenants, the practical effect is delay and added paperwork after the start date. For sellers, a missed notice or skipped waiting period creates penalty risk.
What should you do with a pending matter?
Treat a pending lawsuit or sale as exempt, but document the date. Courts and buyers will look at when notice, contract and filing occurred.
Keep those records together and do not restart a transaction only to gain or avoid COPA. Save your filing date, contract date and sale notice to show the case predates COPA.
- Keep the sale notice, contract, closing papers and filing stamp
- Keep proof of delivery dates for notices and offers
- Ask a housing attorney before amending, refiling or transferring a pending claim
- Watch HPD guidance for forms and notice addresses for future sales