Bill > S00401

This bill establishes the "Tenant Opportunity to Purchase Act" (TOPA), which gives tenants in New York State the first opportunity to purchase their rental housing accommodation before the owner can sell to a third party. The bill applies to residential properties with three or more rental units and creates a comprehensive framework for tenant purchasing rights. Tenants can form a tenant organization or work with qualified purchasers (typically non-profit housing organizations) to potentially buy their building. The bill requires owners to provide tenants with a bona fide offer of sale and gives tenants 45 days to respond, with the option to request an independent appraisal of the property's value. Importantly, the legislation includes provisions to maintain permanent affordability, limiting future resale prices and ensuring that units remain accessible to households at or below certain income levels. Qualified purchasers must meet specific criteria demonstrating a commitment to affordable housing and democratic residential control. The bill also provides incentives like partial tax exemptions and requires the Division of Housing and Community Renewal (DHCR) to maintain a list of qualified purchasers and enforce the law's provisions. Penalties for non-compliance can include significant civil penalties, and the law is designed to prevent the displacement of middle and lower-income tenants by giving them a meaningful opportunity to remain in their homes, either as owners or continued renters.

Housing and Urban Affairs, Justice

https://www.nysenate.gov/legislation/bills/2025/S401