NYS Abandons Ground Lease Co-ops, Leaves 25,000+ NYers Exposed to Land Grabs From Billionaire Landlords

ALBANY, NY (06/08/2026) (readMedia)-- Last week, for the fourth consecutive year, Albany lawmakers failed to pass the Ground Lease Co-op Bill (S2433A Krueger/A2619 Rosenthal) before the end of the legislative session. Despite strong support for the bill, the Legislature ultimately failed to pass it in time. The bill would have stabilized conditions for ground lease co-ops by granting residents reasonable rents if a co-op is forced to deconvert, the first right to purchase the co-op's land if a landlord decides to sell, and the ability to borrow for repairs. Now, without swift action from state officials, more than 25,000 middle-class New Yorkers - 50% of whom live in Queens, Brooklyn, and the Bronx - risk losing their homes to billionaire landlords seeking extreme rent hikes.

Impacted residents and members of the Ground Lease Co-op Coalition issued the following statements in response:

"The Legislature has, once again, shut the door on New York's ground lease co-ops-and this time they could be left out in the cold permanently. For four straight years, our families have called on the Legislature to enshrine basic protections and stop greedy landlords and financial investors from taking our homes. Without strong guardrails in place, the communities we've spent generations building are now at the mercy of real estate billionaires looking to make a quick buck. In the middle of the worst housing crisis we've seen in decades, tens of thousands of retirees, middle-income, and working-class New Yorkers are on the verge of losing everything, including all our savings. Now our only chance is for the State government to step in and save our homes," said William Maiman, president of the Mainstay SECTION ONE Co-op Board in Queens and member of the Ground Lease Co-op Coalition.

"Ground lease co-ops end yet another legislative session as New York's last unprotected class of tenants. Year after year, advocates and families have urged legislators to close the loophole threatening our homes, all to no avail. The window to act is closing fast. Continued inaction means ceding the homes of over 25,000 middle-class New Yorkers to big real estate and private equity. We are calling on Governor Hochul to take action immediately and protect our co-ops before it's too late. The State is our last line of defense and our families can't wait any longer," said Richard Hirsch, president of the Carnegie House Board of Directors and member of the Ground Lease Co-op Coalition.

BACKGROUND

As land values reach all-time highs and outpace typical incomes for residents, the Ground Lease Co-op Bill would secure 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. In particular, the legislation would ensure residents 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 legislation would 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

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.

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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