The City and County of San Francisco ("City") has enacted a new law impacting Sellers listing or privately selling buildings with 3 or more residential units (including TIC "units" in such buildings) whether or not mixed use, and lots zoned for such units. This new law is called the Community Opportunity to Purchase Act ("COPA").
COPA goes into effect June 2, 2019.
But COPA appears to be unenforceable as the City has yet to publish a required list of "Qualified Nonprofit Organizations" (the "List"). Without the List, Sellers cannot comply with COPA as it is impossible for Sellers to provide such nonprofits with the "right of first offer" and "right of first refusal" notices required by this law.
How long COPA will be unenforceable is unknown.
And, it presently is unclear whether once the List becomes available to the public the City will require Sellers immediately to comply with COPA or grant some grace period to allow for compliance following notice of the List's availability. The timing of the enforcement of COPA could impact pending listings, unaccepted offers or terminated purchase agreements, as further discussed in the "Q&A" below.
SFAR has prepared a Notice and Interim Advisory for Sellers of real property subject to COPA. This new form is linked here.
The Mayor's Office of Housing and Community Development ("MOHCD") reportedly will provide an "FAQ" to the public on June 3, 2019 confirming COPA is presently unenforceable, elaborating on when the List likely will be available, and providing other important information.
Sellers seeking advice or having any questions regarding COPA should engage a qualified San Francisco real property attorney.