Ground Lease Co-op Coalition Rally in Albany to Save Homes for 25,000 New Yorkers from Billionaire Landowners

ALBANY, NY (01/27/2025) (readMedia)-- Today, the Ground Lease Co-op Coalition (GLCC), held a press conference to show support for (S2433/A2619) and demand legislative action for more than 25,000 New Yorkers living in ground lease co-ops across the state. Recently reintroduced by cosponsors Senator Liz Krueger and Assemblymember Linda Rosenthal, S2433/A2619 seeks to expand protections for ground lease co-ops, defending their homes from predatory landowner practices. Unlike traditional co-ops, ground lease co-op residents do not own the land beneath their buildings, and instead lease the land from landowners with virtually no occupancy rights or protections, such as limitations on rent increases, right of first refusal, and other typical protections available upon lease expiration. This paves the way for billionaire real estate moguls to buy up land and profit from the exploitation of their residents. Joined by members of the National Action Network and Strong Economy for All, the coalition rallied in Albany to call attention to the human cost of the current regulatory void, right on Albany Capitol's Million Dollar Staircase.

Watch the livestream of the press conference here.

More than half of New York's ground lease co-ops are located in Queens, Brooklyn, and the Bronx. Residents in these buildings are predominantly middle class, earning slightly above the city's median income of $76,000. As New Yorkers battle against historically low vacancy rates and some of the nation's highest cost burdens, many are fending off displacement from landowners who seek to convert their co-op buildings into market-rate (or even luxury) housing, at increasing rates. Dating as far back as the 1950s, many ground leases were written and signed by developers that no longer exist, changing hands to new landowners. But even after Albany's historic 2024 housing deal, ground lease co-op residents are left wanting. After years without security, the coalition is fighting for lawmakers to grant standard protections and close the existing loophole that offers landowners room to exploit their residents. Following Governor Hochul's signing of last year's Ground Lease Renewal bill, Senator Krueger and Assemblymember Rosenthal are working to advance the remaining protections from their original proposal:

• Reasonable rent increases
• Right to renew upon lease expiration
• Right to borrow for repairs, maintenance, and capital improvement
• Right of first refusal to purchase the land beneath their homes under the same terms offered to other potential buyers

Impacted families from Midtown's Carnegie House Co-op and Flushing's Murray Hill Cooperative shared their testimony as they work to stave off eviction. As highlighted in resident Tony Santiago's recent opinion piece, Carnegie House's 324 families face an upcoming rent reset this year. Despite their willingness to negotiate a fair increase, their landowners have floated a sixfold rent hike that's likely to evict the entire building. Residents at Murray Hill Co-operative are under the same threat from their landlord, meanwhile banks refuse to finance essential upgrades throughout their aging building, worsening their quality of life.

"Ground lease co-op residents are among the most vulnerable New Yorkers in our housing system, and it's long past time we address this glaring inequity. These are hard working middle-class families who have poured their resources into creating stable homes and communities. Yet, they remain subject to unpredictable and predatory practices at the hands of their landowners. We cannot allow these families to continue living under the constant threat of displacement. This legislation will ensure that ground lease co-op residents finally receive the security and fairness they deserve, leveling the playing field," said Senator Liz Krueger.

"For too long, residents of ground lease co-ops have been left vulnerable to unconscionable rent hikes and displacement as their ground leases expire," said Assemblymember Linda B. Rosenthal, Chair of the Assembly Committee on Housing. "All New Yorkers deserve housing affordability and stability, no matter the type of apartment they live in, and protections for these residents are long overdue. My legislation would provide the safeguards ground lease co-op residents need to preserve their homes and plan for the future and ensure that they will not be taken advantage of by landowners looking to turn a profit. I look forward to working with the Ground Lease Co-op Coalition to pass protections into law this session."

"As a longtime resident of Carnegie House, we know firsthand the dangers of living without basic housing protections. We are in the fight of our lives, working to save our homes as our rent resets this year. But this is not just about Carnegie House – it's about safeguarding tens-of-thousands of New Yorkers, wondering whether they'll still have a place to call home once their ground leases expire. Passing this bill will give ground lease co-op residents a fighting chance to preserve our homes and finally acknowledge the long-ignored truth: every New Yorker deserves standard housing protections, whether you're a renter or a homeowner," said Richard Hirsch, president of the Carnegie House Board of Directors.

"Like ground lease co-op residents across New York, the families of Carnegie House Co-op are eager to save our home. For nearly thirty years, my wife and I have worked diligently to save for our retirement. But now, when we should finally be taking on this new life chapter, we find ourselves trapped. Our building is being held hostage by landowners seeking to raise our ground rent to a price that would drain our life savings and displace us. No one should ever have to risk losing their home because of a lack of legal protections. We urge our lawmakers to listen to our story and act now to save the thousands of New Yorkers who call ground lease co-ops home," said Tony Santiago, longtime resident of Carnegie House and member of the Ground Lease Co-op Coalition.

"At the height of our current housing crisis, New York's middle class is now suffering under the thumbs of luxury landowners demanding outrageous profits. When a tech billionaire can buy the land from right underneath middle-class communities, it's a direct threat to our daily lives. 25,000 residents living in ground lease co-ops across New York City and Westchester are facing this exact hardship. New York cannot allow this blatant abuse of power to continue while tens of thousands of homes are on the line" said Michael Kink, Executive Director of Strong Economy for All.

"The passage of the Ground Lease bill in this legislative session would be a significant victory for the cooperative housing community. This legislation provides much-needed clarity and protections for cooperatives with ground leases, ensuring long-term stability for residents and preserving affordability in our communities. By addressing the unique challenges posed by these agreements, the bill strengthens the foundation of cooperative living and safeguards a vital housing option for countless families," said Jane Curtis, chair of the Cooperatives and Condominiums Advisory Council of the BRI.

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.

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