Small Property Owners in New York City Await Mayor Adams's Potential Outgoing Veto on Housing Grab

"Mayor Eric Adams, in the waning days of his tenure, has an opportunity to veto misguided housing legislation passed by the City Council. AP/Julia Demaree Nikhinson Mayor Eric Adams has fewer than 48 hours to veto far-reaching housing legislation that opponents say will hand over private multi-unit properties to government-approved buyers before permitting owners to take it to the open market, stifling competition and property values."

"The New York City Council passed the Community Opportunity to Purchase Act the week before Christmas. It gives the Department of Housing Preservation and Development authority to designate community groups, nonprofits, and some for-profit groups as "Qualified Entities" with the first right to make an offer to purchase multi-unit buildings and a generous timeline to close the deal."

"The law is designed to cover buildings of four or more units that are distressed, subject to foreclosure, or whose affordability restrictions are scheduled to expire within two years. Properties in which owners live in the building are not bound by the restrictions."

The City Council passed the Community Opportunity to Purchase Act, requiring owners of certain multi-unit buildings to offer properties for sale first to city-designated groups before the open market. The Department of Housing Preservation and Development can designate community groups, nonprofits, and some for-profit entities as Qualified Entities with the first right to make offers and extended timelines to close deals. If a sale to a designated group fails and the owner receives another offer within a year, the original bidder gets a right of first refusal. The law targets buildings of four or more units that are distressed, in foreclosure, or facing expiring affordability restrictions, while owner-occupied properties are exempt. Supporters say it helps nonprofits and community groups compete with investors; opponents say it could reduce competition and property values and the mayor has a limited window to veto.

Read at The New York Sun