Is It Fair for NYC to Give Nonprofits First Priority When You Sell? A Brooklyn Broker’s Perspective

New York City is exploring policies that would require multi-unit property owners to offer their buildings to nonprofit organizations first — before listing publicly, before entertaining buyers, and before brokers can bring the full market to the table.
On the surface, this might sound like a tool for preserving affordable housing.
But as someone who advises Brooklyn sellers daily, I believe every homeowner deserves to understand what this means for their rights, their sale price, and their timeline.

Because the truth is simple:
This has major implications for sellers, brokers, and the industry at large — and fairness is absolutely part of this conversation.

What the City Says: “This Protects Affordable Housing”

Supporters of nonprofit-first purchase programs argue that:

• It gives mission-driven organizations a chance to preserve affordability.

• It keeps buildings out of the hands of speculators.

• It benefits tenants by offering long-term stability.

• Owners still technically receive “fair market value.”

These are well-intentioned goals, and affordable housing matters deeply in a city like ours.

But intention and outcome are not always the same.

Why Sellers Feel This Is Not Fair

1. It Restricts Your Right to Sell Freely

You worked for this property.
You maintained it, paid the taxes, handled the headaches.
You should be able to decide who you sell to and when.

A policy that forces you to wait for a nonprofit’s response before taking your building to market limits your freedom as an owner.

2. It Delays Your Sale — Sometimes for Months

Nonprofits typically rely on:

• government grants

• subsidies

• board approvals

• slow funding cycles

That means:

• longer timelines

• slower negotiations

• delayed closings

And during all that time, you’re still paying carrying costs — without the benefit of full market exposure.

3. It Reduces Competition (Which Reduces Your Price)

Competition drives value.
When the entire buyer pool — investors, families, developers, 1031 buyers — are kept waiting behind a nonprofit, the entire market dynamic shifts.

Less competition =
lower offers
weaker terms
less leverage

And lower sale price doesn’t just hurt the seller — it hurts the equity you’ve built over years or decades.

4. It Creates an Uneven Playing Field

Nonprofits often benefit from:

• tax exemptions

• subsidized loans

• city financing

• special acquisition programs

Private buyers can’t operate with those advantages.
This is not a level playing field — and private sellers are the ones bearing the cost.

Why Brokers Know This System Hurts the Market

As brokers, we’re problem-solvers. We guide sellers, buyers, and investors through complex markets.
But when government regulation restricts when and how we can market a property, it affects:

• strategy

• pricing

• competition

• timing

• and ultimately, success

A nonprofit-first system ties the hands of every broker working to protect their client’s best interest.

It also creates awkward client conversations:

• “You can’t list yet.”

• “We have to wait for a nonprofit to decide.”

• “I know you have buyers ready, but we can’t accept them.”

That undermines trust — not because of the broker, but because of the policy.

Is There a Balance? Possibly. But Not Like This.

Nonprofits do important work in our city.
Affordable housing matters.
We all recognize that.

But placing the entire burden on private sellers is not the solution.

A fair system should:

• allow nonprofits to participate without blocking market competition

• protect tenants without punishing owners

• support affordability without crippling sales timelines

Right now, the balance isn’t there.

So What Should Sellers Do?

If you plan to sell in 2025 or 2026, get ahead of this conversation now.

At Pen Realty, I help sellers:

• understand how these policies may affect their timeline

• identify whether nonprofits are active in your neighborhood

• analyze how a nonprofit offer compares to true market value

• protect leverage, pricing, and strategy

• position your listing to attract the best qualified buyers

The market is changing — and the right guidance matters more than ever.

Final Thought

As a lifelong Brooklyn resident and a licensed broker who serves sellers every day, I believe in transparency and fairness.

Policies that reshape how properties are sold should not ask private sellers — and the real estate professionals who support them — to shoulder the full weight of affordability strategies.

You deserve clarity.
You deserve full market access.
You deserve a process that respects your investment.

If you want to protect your sale in this evolving landscape, visit PenRealty.net or contact me directly.
This is A Signature Experience.