COPA in NYC: Is “Fair Market Value” Really Fair for Brooklyn Sellers in 2026?

As New York City moves closer to implementing the Community Opportunity to Purchase Act (COPA) on a wider scale, Brooklyn homeowners are asking one crucial question:

If nonprofits must offer “fair market value,” is that price truly fair for sellers?

At first glance, the phrase sounds reassuring. “Fair market value” implies a transparent, competitive number backed by data. But as reported by The Wall Street Journal, The New York Times, and The Real Deal, nonprofit acquisition financing often follows a completely different path from conventional buyers — one that can slow down offers, limit competition, and influence the final price in unexpected ways.

For owners preparing for a 2026 listing, understanding how COPA works is not just helpful — it’s essential for protecting your equity, your timeline, and your negotiating power.

What COPA Actually Does — and Why It Matters for Sellers

COPA gives qualified nonprofits the first right to make an offer on certain multifamily buildings before the property can enter the open market. Advocates argue that this helps preserve affordable housing. But for property owners, the policy introduces new layers of complexity that can impact how — and when — a sale occurs.

The most important part for sellers is this:

Nonprofits must offer “fair market value.”
However, the way they determine and secure that value can be dramatically different from traditional buyers.

Before a seller can move forward with a typical buyer pool, a nonprofit may be allowed to:

• Review the building’s financials

• Conduct preliminary underwriting

• Line up various funding sources

• Submit a qualified offer within a defined window

During that period, your property cannot be fully exposed to the open market — and that matters.

Why “Fair Market Value” Is More Complicated Than It Appears

In a conventional sale, the market determines value:

• Competing offers

• Fast-moving buyers

• Clear financing

• Predictable timelines

But nonprofit funding mechanisms are often described by industry analysts as “layered, slow, and approval-dependent.” The Wall Street Journal notes that nonprofit buyers frequently rely on complex structures, including municipal subsidies, grants, tax-credit financing, and partnerships with housing agencies.

Each of those layers requires sign-offs.
Each sign-off takes time.
And while the offer may eventually reach “fair market value” on paper, delays and uncertainty can influence the real outcome.

Three ways this affects Brooklyn sellers:

**1. **Slower Timelines Can Reduce Buyer Urgency

Real estate markets — especially in competitive Brooklyn neighborhoods like Park Slope, Bay Ridge, Carroll Gardens, and Prospect Heights — thrive on momentum.

But when nonprofits need extended timeframes to assemble an offer, sellers may lose:

• The initial excitement typically generated when a property lists

• The competitive pressure that drives price increases

• The quick movement that keeps buyers engaged

If the nonprofit period slows the launch, sellers may enter the market at a less advantageous moment.

**2. **Reduced Competition Means Reduced Negotiating Power

The Real Deal reports that nonprofit financing tends to be more conservative and more heavily scrutinized than traditional lending. As a result, nonprofits often submit offers at or below market value — and without the competitive escalation common among private buyers.

Multiple-offer situations are responsible for pushing many Brooklyn transactions above asking. When nonprofits enter the process first, sellers may not benefit from that natural price acceleration.

**3. **Fair Market Value May Not Reflect Real-Time Demand

As The New York Times highlights in its coverage of nonprofit housing acquisition, valuation models used in subsidized purchases sometimes rely on stabilized figures rather than the dynamic pricing seen in open-market sales.

This can create a mismatch between:

• What the market is actually willing to pay

• What the nonprofit’s financing structure will support

In fast-moving or rising markets, that difference can be significant.

Who Is Most Affected in Brooklyn?

While every seller should understand COPA, the impact is highest for:

• Multifamily property owners

• Buildings with existing tenants

• Pre-war or mixed-use buildings in neighborhoods undergoing revitalization

• Owners planning to sell in 2026 or later

These categories include a large share of Brooklyn’s housing stock — from Sunset Park to Kensington to Crown Heights.

The more units a property has, the more likely COPA procedures may come into play.

What Brooklyn Sellers Should Do Now — Before 2026

COPA doesn’t mean sellers lose control.
It means sellers must prepare earlier and more strategically.

Here’s how:

1. Understand Your Property’s Market Positioning

If your building falls into a category where COPA may apply, you’ll want a clear analysis of how the law affects:

• Timeline

• Expected pricing

• Buyer pool

• Investor competitiveness

A market evaluation from a local broker with experience in multifamily deals is essential.

2. Get Your Documentation in Order Early

Any nonprofit bidding under COPA will want:

• Rent rolls

• Tenant status

• Income and expense statements

• Maintenance history

• DOB and HPD records

Brooklyn sellers who prepare these documents months in advance will be in a stronger negotiating position — whether with a nonprofit or on the open market.

3. Start Your Conversations Sooner Than You Normally Would

If you’re planning to sell in 2026, the optimal window to begin planning is now.

That includes:

• A strategic pricing consultation

• An attorney who understands COPA requirements

• A timeline analysis that accounts for nonprofit review periods

• A full exposure plan for when the property hits the market

Preparation gives sellers leverage.

So… Is Fair Market Value Fair?

Here’s the truth:

Fair market value under COPA may be financially accurate on paper but not competitive in practice.

Because nonprofits operate under slower approval processes and more restrictive financing structures, their offers often do not reflect the full range of what the private market would produce.

For sellers, this means two things:

1. Your timeline may extend.

2. Your pricing may not benefit from peak competition.

Neither outcome is inherently unfair — but both must be planned for.

And planning early is the key to protecting your equity.

Final Thoughts: Clarity Creates Confidence

Brooklyn sellers deserve transparency, strategy, and advocacy — especially as new policies reshape the way properties change hands in New York City.

COPA doesn’t have to be a disadvantage.
But ignoring its impact could be one.

If you’re a Brooklyn homeowner considering a sale in 2026, now is the moment to understand your options and get ahead of the curve.

For guidance rooted in experience, preparation, and A Signature Experience, visit:

👉 PenRealty.net