Did you know that SF supervisors passed legislation to give non-profits the right of first offer and refusal to purchase a multi-unit building? They sure did. It was supposed to go into full effect on June 2, 2019, but it seems there are few kinks to iron out.
The Mayor’s Office of Housing and Community Development has announced that they are not implementing the Community Opportunity to Purchase Act (COPA) until September 3, 2019. See FAQ
In a nutshell, If you have a building with three units or more, or an empty lot zoned for three or more units, qualified nonprofits will have the first right of first offer and refusal. Here is the legislation which spells out how sellers will have to wait while the nonprofits decide whether to purchase or not, at two different points. The theory is that nonprofits are more likely to keep tenants. One big question we have is how will this effect 1031 exchanges?
The big hold up, this time, is that there is currently no list of qualified nonprofits, that the Mayor’s office of housing is releasing. In fact, they are currently taking submissions. Do you know of any nonprofits applying? Those who want to make the list have only until June 17, 2019 to apply.
If you are thinking of jumping into a multi-unit investment or selling in SF, this might be the right time.