The county Board of Supervisors directed its staff Tuesday to develop a program that would give qualified affordable-housing organizations the first chance to purchase residential properties when they are placed on the market.
The board asked that staff return in 180 days with the proposed program, known as a Community Opportunity to Purchase Act, or COPA. The program is envisioned to eventually expand into a Tenant Opportunity to Purchase Act, offering initial purchase rights to tenants of rental properties, tenant associations or other qualified buyers.
“Los Angeles County has been a strong residential investment destination since the early 2000s, which is demonstrated through its steady increase in property appreciation over the past two decades as well as short transaction timelines and the consistently higher sales price above asking across all property types,” according to a motion by Supervisors Hilda Solis and Holly Mitchell. “Without policy intervention, existing renters face potential displacement risks as housing costs keep rising beyond affordability.
“A well-designed Tenant and Community Opportunity to Purchase Act Program could provide additional tenant protections, expand equitable access to homeownership, and help alleviate the housing affordability crisis when paired with appropriate program design considerations and ecosystem support.”
According to the motion, the COPA and TOPA programs are designed to combat the “rising affordability crisis and the long-standing inequitable access to homeownership.” County officials stressed that the programs would not cap the value of residential properties placed for sale, but would give tenants or community groups the chance to buy properties at market rate, helping to control rents that might increase sharply if buildings are purchased by large corporations.
Mitchell said the program would create “a fair and transparent process for when an owner chooses to sell.”
The program is expected to focus on properties with five or more rental units, as well as mobile home parks.
In addition to drafting the program, the board directed its staff to also report back with potential funding sources to support the implementation of the program in unincorporated areas, including education and outreach programs.
Some property owners and building management groups opposed the proposal, suggesting the programs would be an infringement on their rights to sell their properties to a buyer of their choosing — and to make a profit on their investment.
One resident told the board that property owners “should be free to sell their properties in an open and competitive marketplace without government-mandated roadblocks.” Critics also said the program could discourage development of housing projects in the county.
Supervisor Kathryn Barger said she supported to motion as a path toward preserving affordable housing.
“It also has the potential to help protect the mom-and-pop property owners who have long provided much of our naturally occurring affordable housing by giving community-based organizations and local buyers a fair opportunity to compete with large, well-capitalized investors,” Barger said.