Carnegie House Wins Breathing Room in 450% Rent Hike Battle, Back to Negotiating Table for Fair Ground Rent

NEW YORK, NY (09/03/2026) (readMedia)-- Today, the New York State Appellate Division unanimously ruled in favor of 300+ middle-class families at Carnegie House, striking down a staggering 450% rent increase pushed by their landlord, which is controlled by billionaire real estate moguls Rubin Schron, David Werner, and Michael Dell - the result of a flawed ground lease arbitration process. This decision sends Carnegie House back to the negotiating table to determine a new, fair ground rent after the attorneys for the landlord sabotaged the co-op's original arbitration last summer and further threatened displacement with a demand to pay $10 million in back rent on a 20-day notice, based on the 450% rent increase.

Richard Hirsch, president of the Carnegie House Board of Directors, issued the following statement:

"Today's decision is a critical victory for over 300 Carnegie House families who have been backed into a corner by real estate tycoon Michael Dell, our other billionaire landowners, and a corrupt arbitration award. While this ruling is a temporary stopgap, it gives us a fair shot at negotiating reasonable rent terms, or arbitrating before an impartial panel, instead of being bound by a flawed process that would have cost us our homes. We look forward to a fair process in order to reach an outcome that works for both parties and keeps our co-op intact for generations to come.

But there's still lots more on the line. Carnegie House is just the first of many ground lease co-ops statewide that will have to fight to stay housed with the odds stacked in their landlord's favor. Without action at the state level, more than 25,000 middle-class New Yorkers risk losing their homes, futures, and all they have ever worked for. It's time for Governor Hochul to act quickly and protect New York's ground lease co-ops."

Amid the statewide housing crisis, Carnegie House and the Ground Lease Co-op Coalition are fighting to pass critical legislation to protect families living in ground lease co-ops statewide – many of which are facing lease renewals or rent resets similar to Carnegie House. But this past June, the State Legislature adjourned without passing it, leaving more than 25,000 ground lease tenants at risk of displacement without standard protections, and nearly 12,000 homes under threat of deconversion. 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 in areas where the majority of residents earn just above the citywide median of $76,000. Without urgent action from state leaders, tens of thousands of middle-class families could be priced out by unchecked landlords.

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 at risk of displacement due to an extreme 450% rent hike proposed by their landowners. Eager to remain in their homes, Carnegie House's residents are 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 amid the ongoing housing crisis.

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