Abstract. We study properly discontinuous and cocompact actions of a discrete subgroup Γ of an algebraic group G on a contractible algebraic manifold X. We suppose that this action comes from an algebraic action of G on X such that a maximal reductive subgroup of G fixes a point. When the real rank of any simple subgroup of G is at most one or the dimension of X is at most three, we show that Γ is virtually polycyclic. When Γ is virtually polycyclic, we show that the action reduces to a NIL-affine crystallographic action. Specializing to NIL-affine actions, we prove that the generalized Auslander conjecture holds up to dimension six and give a new proof of the fact that every virtually polycyclic group admits a NIL-affine crystallographic action.