Lawmakers Condemn Billionaire Land Grab Threatening Affordable Homeownership at Carnegie House Co-op

NEW YORK, NY (01/09/2026) (readMedia)-- State and city elected officials are raising concerns after a court decision allowing the billionaire landowners of the Carnegie House ground lease co-op to impose a 450% rent increase, putting more than 300 middle-class families at risk of displacement and losing their life-earned equity. The rent hike would saddle the co-op with an estimated $25 million per year in ground rent, an unsustainable cost that would force families from their homes.

The situation at Carnegie House reflects a broader statewide issue impacting more than 25,000 middle-class New Yorkers living in ground lease co-ops, underscoring the need for S2433/A2619 to protect homeowners, preserve affordability, and prevent displacement. More than 50% of 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. Sponsored by Senator Liz Krueger and Assemblymember Linda Rosenthal, the bill offers ground lease co-op residents standard protections to defend against predatory landowner practices.

"Throughout our city, residents of ground lease co-ops like Carnegie House represent the diversity of New York: many are longtime residents, middle-income families, and retirees who first built their lives in these homes decades ago. Like all residents, they deserve the right to remain in the homes and communities they have built. This is a catastrophic outcome for these New Yorkers. In the middle of a housing affordability crisis, we must act to provide protections to help preserve the homes of the tens of thousands of middle-income New Yorkers in ground lease co-ops like Carnegie House," said Senator Liz Krueger.

"The gargantuan increase in maintenance residents will now be charged adds insult to injury," said Assemblymember Linda B. Rosenthal (D/WF-Manhattan), Chair of the Assembly Committee on Housing. "Essentially, Carnegie House's landowner is giving its residents one of two options: either accept a nearly 450% maintenance increase or kiss your apartment, and by extension, your hard-earned equity, goodbye. Thousands of New York families live in ground lease buildings, many of whom bought their apartments decades ago. This greed will result in foreclosures and homelessness, which is why the Legislature must pass my bill extending protections to these residents before it's too late."

"Ground lease co-op residents have invested decades in their homes, yet current law leaves them exposed to sudden financial shocks. A2619/S2433 would give these families legal protections and financial autonomy. Passing the bill this session is necessary to prevent mass displacement and secure long-term affordability in communities throughout New York," said Assemblymember Gary Pretlow.

Manhattan Borough President Brad Hoylman-Sigal said, "Senator Liz Krueger and Assemblymember Linda Rosenthal's S2433a is a critical piece of the puzzle of affordability in New York City, preserving resident power and keeping New Yorkers in their homes. I was proud to co-sponsor and vote in favor of the bill during my tenure in the State Senate, and I stand with the advocates doing the critical work of advancing it once again in Albany this legislative session."

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 whom are facing lease renewals or rent resets similar to Carnegie House. The legislation aims to secure:

1. Right to Borrow for Repairs and Capital Improvements: Enable ground lease co-op residents to borrow money for required repairs and capital improvements, unless the ground lease owner denies consent for a reasonable cause within 15 days of receiving written request. Given the advanced age and condition of many ground lease co-ops statewide, this provision helps ensure their long-term safety and maintenance.
2. Right of First Refusal: Ground lease co-op residents would have the right to purchase the land under the same terms that the landlord may have agreed to with another potential buyer. Ground lease co-op residents have a natural economic connection to the land after having occupied it, used it, and invested in it on a long-term basis.
3. Tenant Protections upon Deconversion: Allow ground lease co-op residents to secure reasonable first rents in the event that a co-op is forced to deconvert, providing a path for residents to stay in their homes. This tenant protection would harmonize the laws governing ground lease co-ops with existing practices under the state's Rent Stabilization Law.

Without urgent legislative action, tens of thousands of middle-class families risk losing their homes to landowners using predatory tactics to price them out.

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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