Title
Discussion of Tenant Opportunity to Purchase Arrangements
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Hold a discussion on Tenant Opportunity to Purchase arrangements debriefing the special meeting held with local stakeholders that occurred on June 11 and provide direction to staff regarding next steps.
Report
Issue:
Whether to hold a discussion on tenant opportunity to purchase arrangements debriefing the special meeting held with local stakeholders that occurred on June 11 and provide direction to staff regarding next steps.
Staff Contact:
Christa Lenssen, Senior Housing Program Specialist, Community Planning & Economic Development, 360.570.3762
Presenter(s):
Christa Lenssen, Senior Housing Program Specialist, Community Planning & Economic Development
Background and Analysis:
Tenant Opportunity to Purchase (TOPO) policies establish a process for a structured timeframe and process where tenants are notified of an impending sale and provide an opportunity to purchase the property before it is sold to another buyer. Many TOPO policies also include a right of first refusal, allowing tenants to match a bona fide purchase offer from another party.
Frequently, TOPO policies can also include other parties such as nonprofit affordable housing organizations, local government, and/or a public housing authority (also known commonly referred to as Community Opportunity to Purchase (COPO) policies. These policies can apply to a variety of housing types, including single-family homes and multifamily residential properties. In some cases, acquisition by tenants or nonprofit organizations can preserve long-term affordability, particularly when properties are converted to limited equity cooperatives or other permanently affordable ownership models.
TOPO and COPO policies are intended to provide tenants and mission-driven organizations with an opportunity to compete with investors in the real estate market. These approaches may help stabilize housing costs for current residents, reduce displacement, preserve affordable housing, and support transitions from investor-owned housing to resident or community ownership.
As with other property rights regulations, TOPO and COPO policies carry some legal risk. Right of first refusal and opportunity to purchase requirements may be challenged as an unconstitutional taking or a violation of substantive due process. However, similar policies have been enacted in Washington State, including the opportunity to compete to purchase requirements for manufactured home communities.
Alignment with City workplans and goals
The City's Housing Action Plan identifies several actions that support homeownership opportunities and community ownership models, including:
• 1.h. Provide funding for non-profit organizations to buy income restricted units proposed to be converted to market-rate housing.
• 1.i. Provide funding for low-income and special needs residents to purchase housing through community land trusts.
• 2.d. Consider a Tenant Opportunity to Purchase (TOPO) Ordinance.
The City's Comprehensive Plan Update also identifies strategies to prevent tenant displacement and preserve affordable housing, including:
• Consider adoption of policies to help renters access homeownership opportunities. Consider a Tenant Opportunity to Purchase Ordinance (TOPO) to give renters the first right to purchase their rental unit if the landlord decides to sell.
• Encourage and support community land trusts, tenant cooperatives, or nonprofit ownership models to protect residents from displacement due to redevelopment or corporate acquisition.
• When Community Development Block Grant, Home Fund, or Housing and Urban Development-funded buildings are at risk of being converted to market-rate status, inform the tenants of any purchase and relocation options available. When possible, help the Housing Authority of Thurston County and nonprofit organizations buy such housing.
Previous work to date
At the direction of the Land Use & Environment Committee (LUEC), staff conducted initial research into the feasibility of implementing a TOPO/COPO policy and presented its findings to the committee in February 2026. Following that discussion, LUEC directed staff to convene local stakeholders to gather additional perspectives on potential policy approaches.
In response, staff hosted a special LUEC meeting on June 11, 2026, with representatives from local stakeholder organizations. Additional information on the research completed to date and stakeholder input is provided in the attached document, Work to Date.
July LUEC meeting
At the July LUEC meeting, staff will summarize stakeholder feedback received during the June 11 special meeting. Based on the research completed and stakeholder input, staff will present potential options for Council consideration, including actions that could be implemented within existing resources as well as policy implementation or pilot program options that would require additional resources. Staff requests that LUEC identify any additional information needed before making a recommendation on next steps.
Climate Analysis:
The LUEC discussion will have no immediate impact on greenhouse gas emissions. If a Tenant Opportunity to Purchase or Community Opportunity to Purchase policy or program is implemented, it could help reduce displacement by enabling some tenants to remain in their homes, potentially reducing vehicle miles traveled and associated greenhouse gas emissions.
In addition, if property acquisitions receive funding through the Washington State Housing Trust Fund, rehabilitation projects would be required to meet Evergreen Sustainable Development Standards, which include energy efficiency and sustainable building practices.
Equity Analysis:
Enacting a tenant opportunity to purchase will prevent displacement when a rental property goes up for sale, stabilize households and housing costs, as well as provide homeownership opportunities to build wealth. Many community groups have historically been left out of homeownership and as a result, have had less opportunity to create individual and intergenerational wealth. The average American homeowner has a net worth that is approximately 40 times that of the average renter. Creating homeownership opportunities can not only have an immediate impact on housing stability, but a long-term generational impact on wealth. Decreasing housing costs for cost-burdened households provides more flexibility to increase spending on food, healthcare, and other resources.
According to ACS data, about 82% of Olympia households with a single mother rent rather than own their homes. According to HUD CHAS data, 50% of white households in Olympia rent, while 61% of BIPOC households and 73% of Hispanic/Latinx households rent. The Washington State Department of Commerce report Improving Homeownership Rates for Black, Indigenous, and People of Color in Washington finds that 2,866 Black, Indigenous and People of Color (BIPOC) households would need to become homeowners in Thurston County to equal the rate of white, non-Hispanic homeownership.
Economic disparities and lack of intergenerational wealth have contributed to income gaps between BIPOC and white households. According to HUD CHAS data, 24% of households of color in Olympia and 22% of Hispanic/Latinx households in Olympia earn less than 30% of Area Median Income, while 15% of white households earn less than 30% of Area Median Income. According to 2020 ACS data, a person with a disability earned on average $26,075, compared to $37,168 earned by a person without a disability. Just over 33% of single mother households in Olympia had income below the federal poverty level, compared to 11% of the total population.
Rental property owners may be burdened by additional requirements and longer timeframes associated with tenant opportunity to purchase policies. There is limited data on landlord demographics. City of Olympia surveys include demographic data, but not all respondents provide demographic information and there is a limited sample size. Approximately 71% of landlords who completed the landlord survey (part of the Olympia rental housing code update in 2022) identified as white, which is similar to the general population of Olympia overall.
Neighborhood/Community Interests (if known):
Affordable housing continues to be a high priority for the Olympia community. As part of the 2022 Assessment of Fair Housing, increased access to homeownership was identified as a key strategy for advancing equity and addressing housing disparities in Thurston County, with more than half of survey respondents (340 of 605) selecting it as a top priority.
Housing affordability and homelessness have also consistently ranked among the community's highest priorities in City of Olympia surveys. Given the level of public interest, any consideration of a TOPO or COPO policy is expected to generate significant local and regional public engagement.
Financial Impact:
Implementation of a TOPO or COPO policy, including a pilot program, would have staffing and financial implications. Administering notification requirements for eligible parties, monitoring compliance, and conducting enforcement activities would likely require additional staff capacity.
Additional programmatic resources may also be necessary to achieve the intended outcomes of the policy. Depending on available funding sources, financial assistance may be needed to support low- and moderate-income households with property acquisition and rehabilitation. Technical assistance may also be required to support tenant organizing, cooperative ownership, operations and property management, financing, legal services, and other implementation needs. Any new programs or funding would require additional staff resources to administer and manage.
Options:
1. Hold a discussion on Tenant Opportunity to Purchase arrangements debriefing the special meeting held with local stakeholders that occurred on June 11 and provide direction to staff regarding next steps.
2. Do not hold a discussion on Tenant Opportunity to Purchase arrangements debriefing the special meeting held with local stakeholders that occurred on June 11 and provide direction to staff regarding next steps.
3. Take other action.
Attachments:
Previous Work to Date
Homeownership Project Final Brief
WA Multi-Family Opportunity To Compete Playbook
Summary of Literature Recommendations