Amended Ground Lease Co-op Legislation Advances in the Assembly

ALBANY, NY (05/19/2025) (readMedia)-- Today, the Assembly Housing Committee advanced an amended Ground Lease Co-op Bill (S2433 Krueger/A2619 Rosenthal), marking a key step forward in securing protections for more than 25,000 ground lease co-op residents vulnerable to displacement due to longstanding gaps in New York State housing law. As land values reach all-time highs and outpace typical incomes for residents, the revised legislation introduces critical protections to help New Yorkers in ground lease co-ops fend off predatory rent increases and preserve the ability to stay in their homes in the event of deconversion. Housing committee members advanced the legislation to the Rules Committee.

The amended legislation clarifies the regulations governing a ground lease co-op deconversion by aligning them with already existing practices in the Rent Stabilization Law. In particular, the bill would ensure that residents will benefit from the same protections under rent stabilization laws as all other rent stabilized buildings, and will be able to secure reasonable first rents if their co-op is forced to deconvert-providing a path for them to stay in their homes. The Ground Lease Co-op Bill now seeks to guarantee the following tenant protections for residents:

• Ability to borrow for required repairs and capital improvements
• Right of first refusal
• Tenant protections upon deconversion including rental leases for existing residents

Amid the statewide housing crisis, the Ground Lease Co-op Coalition is fighting to pass this legislation and protect families as long-term ground leases begin to expire statewide for more than ten thousand apartments. Unlike traditional co-ops, ground lease co-ops own their homes but lease the land beneath their buildings from landowners and face some unique challenges as a result. Originally established to support middle-class homeownership, more than half of New York's ground lease co-ops are located in Queens, Brooklyn, and the Bronx. Decades later, ground lease co-ops continue to house New York's middle class, with the majority of residents earning just above the city's median of $76,000 across all five boroughs. As the last unprotected class of 'tenants' in New York, ground lease co-ops are eager to see the legislation passed into law by the end of this legislative session.

"New York State counts over 100 ground lease buildings throughout New York City that house thousands of families who purchased their homes at an affordable price, often not realizing that the eventual expiration of their ground lease could also mean the loss of their home," said Assemblymember Linda B. Rosenthal (D/WF - Manhattan), Chair of the Assembly Committee on Housing. "Under my legislation, which was reported by the Assembly Housing Committee today, residents of these buildings will finally have protections against displacement upon the expiration of their ground lease and may remain in their homes as rent-stabilized tenants. Ground lease co-ops have long provided middle-class New Yorkers with an affordable housing option and we must pass this legislation into law to preserve their homes."

"The Ground Lease Co-op Coalition commends Assemblymember Linda Rosenthal and the Assembly Housing Committee for advancing this newly amended bill to safeguard the 25,000+ New Yorkers living in ground lease co-ops. For too long, residents in our buildings have fought back displacement without adequate tenant protections. The new Ground Lease Co-op Bill gives our families an opportunity to remain housed, even in the event of forced deconversion - a critical lifeline in the midst of our city's ongoing housing crisis. We urge the Senate to join the Assembly in pushing this vital bill forward," said Richard Hirsch, president of the Carnegie House Board of Directors and member of the Ground Lease Co-op Coalition.

About the Ground Lease Co-op Coalition: The Ground Lease Co-op Coalition (GLCC) is a non-partisan coalition of co-op owners from diverse socioeconomic, cultural, and ethnic backgrounds advocating to save their homes amid the statewide housing crisis in New York. Representing more than 25,000 New Yorkers, the coalition supports legislative reform to ensure housing fairness, stability, and affordability for all ground lease co-op residents.

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