COPA? You are not alone if you have not heard of COPA, the Community Opportunity to Purchase Act.
Effective September 3 this year, this Act has easily passed the city’s Board of Supervisors last spring. Its intention is to help QNOs (Qualified Non Profit Organizations) create more affordable rental housing.
Even if COPA is very new, it’s already in effect starting last week. If you own a building of 3 units or more in San Francisco, you are likely affected by COPA.
Avoid making these 7 mistakes with COPA when you are thinking of selling your building. They are expensive mistakes to make!
Not giving notices to QNOs of your intent to sell your building. As of today, there are 6 QNOs registered with the city. They have the Right of First Offer to buy your building. This means that you need to notify them about your intention to sell and the terms of the sale including price.
Not getting an updated list of QNOs to send notices to. This list is dynamic and updated by the city.
Not giving QNOs notices when you get an offer from the public - so they can exercise their right of first refusal.
Assuming that all QNOs on the published list have the Right of First Refusal for your building - not all of them do.
Assuming that your building is governed by COPA if it has 3 or more rental units. It may not if your building includes illegal or non conforming units.
Not completing a Seller certification with the City after your sale is successful and closed.
Not looking at all your options as a Landlord/Seller for your rental in San Francisco. If you only need so much cash in a certain year, you do not have to sell the whole building. Sell one unit as a TIC, get the cash. Save on capital gain taxes. Keep part of your rental income with the remaining units.
We have sold TICs out of multi unit buildings as a seller. We will show you how!
Talk to us first at contact@Realtaasa.com