December 24, 2025
Highlights
- The Council approved a package of housing bills, including COPA and new affordability thresholds, just before leaving office.
- The measures could add $600 million annually to the city’s housing budget or reduce financing for 3,275 units.
- Landlords, brokers, and developers warn these bills may slow housing construction and scare away investment, while supporters argue they prioritize equity and affordability.
As the City Council wrapped up its final meeting with its current membership, we watched closely as several housing and real estate measures passed, leaving a lasting imprint on New York City’s housing market. Based on the report of The Real Deal, the package includes bills that set affordability and unit-size thresholds, impose new wages for construction workers, and implement the Community Opportunity to Purchase Act (COPA).
The timing couldn’t be more critical: the incoming mayor, Zohran Mamdani, aims to build 200,000 affordable units over the next decade, but these bills could make that goal more difficult. According to the Department of Housing Preservation and Development (HPD), maintaining current housing production under the new rules could cost the city $600 million annually or result in 3,275 fewer units being financed.
What’s in the Bills?
Here are the details of the bills, including the effectivity dates, based on the report of The Real Deal.
- Community Opportunity to Purchase Act (COPA)
- Applies to multifamily buildings with four or more units that are distressed or have expiring affordability requirements.
- “Qualified entities” like nonprofits have the right of first offer and refusal: 25 days to express interest, 80 days to submit an offer, and 15 days to match competing bids.
- HPD will set criteria for these entities, which must demonstrate a commitment to affordable housing.
- Construction Justice Act
- Applies to housing projects with 150+ units and $3M+ construction costs receiving $1.5M+ in city financing.
- Requires a minimum $40/hour wage and benefits for construction workers ($25 must go to wages).
- Developers must make best efforts to hire 30% local workers; supportive housing projects are exempt.
- Effective January 1, 2027.
- Two- and Three-Bedroom Bill
- Over five years starting July 1, 2027, at least 25% of new units must be two-bedroom and 15% must be three-bedroom or larger.
- Exclusions exist for certain senior, small-scale, or supportive housing projects.
- Affordability Thresholds Bill
- Starting July 1, 2027, at least 50% of new city-financed units must serve extremely low-income (30% AMI) and very low-income (50% AMI) households.
- At least 30% of units must target extremely low-income tenants; projects under 75 units are excluded.
- Homeownership Bill
- Requires at least 4% of new city-financed units to be homeownership units over five years.
- Effective July 1, 2026.
- Air Conditioning Mandate
- Landlords must provide cooling systems in tenants’ primary sleeping spaces during summer months.
- Tenants in regulated units must consent to improvements and related costs, which can be partially recouped through rent increases.
- Co-op Timeline Bill
- Boards must notify applicants within 15 days and approve or reject within 45 days.
- More controversial co-op regulation measures were not considered.
What This Means for CRE
From our perspective as brokers in the New York City commercial real estate market, these bills introduce significant uncertainty. COPA, in particular, changes the dynamics of multifamily property sales, potentially slowing deal flow and discouraging private investors.
- Slower Deal Flow
COPA may delay multifamily sales as “qualified entities” exercise rights of first offer and refusal.
- Higher Development Costs
Construction Justice Act and affordability/unit-size thresholds increase wages and project compliance costs.
- Reduced Financing Flexibility
HPD estimates $600 million/year in added costs or 3,275 fewer units if funding is not increased.
- Investor Hesitancy
Potential buyers may shy away from projects affected by COPA or strict affordability mandates.
- Project Feasibility Risks
Developers may reconsider or downsize projects to meet new unit-mix and wage requirements. Increased emphasis on nonprofits in multifamily ownership could change ownership patterns and market competition.
Monitoring & Study Needed
We see this as a pivotal moment for NYC real estate. On one hand, the Council’s bills reflect a strong commitment to equity, affordability, and worker protections. On the other hand, they could complicate the implementation of the incoming mayor’s housing plans and create friction with private developers.
For brokers like us, this means careful monitoring, research, and guidance are now more critical than ever. We must study the effects of these measures on project feasibility, investor confidence, and long-term housing supply to help our clients make informed decisions.
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