The Los Angeles County Board of Supervisors has taken the first step toward adopting a controversial ordinance that could significantly change how rental housing providers sell multifamily properties in unincorporated areas of the county. In a unanimous vote, the Board directed county staff to draft a Community Opportunity to Purchase Act (COPA) ordinance, a policy that would require certain apartment owners to notify qualified nonprofit affordable housing organizations before selling their properties and provide those organizations with an opportunity to purchase them before a transaction can proceed.

Supporters argue the proposal is intended to preserve affordable housing by giving mission-driven nonprofit organizations the opportunity to acquire rental properties that might otherwise be purchased by private investors. County officials contend that expanding nonprofit ownership could help maintain long-term affordability and reduce tenant displacement in neighborhoods experiencing rising housing costs.

For rental housing providers, however, the proposal raises significant concerns about property rights and the ability to freely market and sell privately owned real estate. Industry groups warn that introducing mandatory notice periods and purchase-priority rights could delay transactions, create additional administrative burdens, increase legal costs, and inject uncertainty into negotiated sales. Even if a nonprofit ultimately declines to purchase a property, owners may be required to comply with procedural requirements before completing a sale to a willing private buyer.

The proposal reflects a growing national movement toward “opportunity to purchase” laws, which have been adopted in various forms in cities such as Washington, D.C., and San Francisco. While proponents view these programs as tools to preserve affordability, critics argue they interfere with fundamental property rights by granting third parties a preferential opportunity to purchase privately owned assets, potentially reducing market competition and affecting property values.

Although the Board has only authorized staff to prepare a draft ordinance, the policy direction is noteworthy. If ultimately adopted, Los Angeles County would join a small but growing number of jurisdictions placing additional conditions on the sale of rental housing. The measure would represent another expansion of local regulation beyond traditional rent control and eviction policies, reaching directly into real estate transactions themselves.

For California rental housing providers, the proposal serves as another reminder that housing policy continues to evolve beyond rent caps and tenant protections. Local governments are increasingly exploring measures that affect ownership, investment, financing, and disposition of rental properties. Owners with investments in Los Angeles County should closely monitor the ordinance as it moves through the legislative process, evaluate how extended sale timelines could affect transaction planning, and consider participating in the public comment process before any final vote.

If enacted, the ordinance could establish a precedent that other California jurisdictions may seek to replicate, making this one of the more consequential property rights proposals currently under consideration in the state.

This article has been prepared by the editorial staff of Apartment News Publications, Inc. (ANP) intended for informational purposes only and does not constitute legal advice. Readers should consult with qualified counsel regarding their specific circumstances.