Amid Retaliatory Notice of $10M+ Rent Bill From Landowners, Carnegie House Fights For Survival

NEW YORK, NY (08/26/2025) (readMedia)-- Shortly after rallying to save their homes from their billionaire landowners, land moguls Rubin Schron, David Werner, and Michael Dell are sticking families at Carnegie House with a $10 million bill for back rent that threatens the building's survival. The landowners are giving Carnegie House residents just 20 days to come up with more than $10 million in ground rent tied to a flawed arbitration process meant to reset their ground lease that resulted in a 450% rent hike that could displace all 324 families. Although the arbitration award has yet to be confirmed in court, Carnegie House's landowners are pressing forward with demands for five months' worth of rent - an act of clear retaliation against the middle-class New Yorkers fighting to remain in their homes.

Today, Carnegie House Board President Richard Hirsch, issued the following statement in response: "For years, Carnegie House's landowners have resisted all attempts to negotiate in good faith for a rent increase that balances all parties' needs. This 450% rent hike jeopardizes our co-op's entire existence; our families are facing displacement with nowhere else to turn. Now, instead of finding a reasonable solution that works for everyone, our landowners are trying to force us out of our homes. This $10 million bill is nothing more than a retaliatory tactic because we are trying to make our voices heard. We are the first to experience these hardball tactics - but we are definitely not the last, as close to 100 ground lease co-ops in and around NYC, housing over 25,000 homeowners, will face similar fates in the years ahead."

Like families at Carnegie House, residents living in ground lease co-ops, form the last major unprotected class of 'tenants,' with virtually no protections or oversight of landowners despite owning a subset of real estate originally meant to support middle-class homeownership.

BACKGROUND

As New Yorkers battle against skyhigh land values, historically low vacancy rates, and some of the nation's highest cost burdens, ground lease co-op residents are fending off displacement at the hands of landowners looking to convert their buildings into luxury housing. Unlike traditional co-ops, co-op buildings on leased property aka "ground lease co-ops" own their homes but lease the land beneath their buildings from landowners. Without reform to ensure standard protections, a loophole in State housing law offers room for new landowners to exploit their longtime residents, due to their unique co-op structure.

Originally established to support middle-class homeownership in the '50s, more than half of New York's ground lease co-ops are located in Queens, Brooklyn, and the Bronx. Many ground leases were written and signed by developers that no longer exist, changing hands to new, wealthy landowners over time. 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.

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, this coalition supports housing fairness, stability, and affordability for the more than 25,000 New Yorkers who live in ground lease co-ops.

About Carnegie House Co-op: Built in 1962 and converted to a co-op in 1978, Carnegie House is now home to 324 middle-class families, who are at risk of displacement due to an extreme 450% rent hike proposed by their landowners. Eager to remain in their homes, Carnegie House is working to protect ground lease co-ops all over New York and advocate for standard legal protections, as they fight against the threat of displacement and the ongoing housing crisis.

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