State Lawmakers Reintroduce Legislation to Protect Ground Lease Co-op Residents From Losing Their Homes

ALBANY, NY (01/22/2025) (readMedia)-- This week, New York State Senator Liz Krueger and Assemblymember Linda Rosenthal reintroduced legislation (S2433/A2619) to address the unique challenges faced by more than 25,000 New Yorkers living in ground lease co-ops. Unlike traditional co-ops, ground lease co-ops do not own the land beneath their buildings, and instead lease the land from landowners. With virtually no protections or regulations governing how landowners are held accountable, ground lease co-op buildings are essentially the last unprotected class of 'tenants' in New York. Today, residents - many of whom are elderly or on fixed incomes - face rising land values and exploitative rent hikes that threaten their homes. This legislation aims to remedy the fundamental flaws in the residential ground lease system and to address the vast power imbalance between landowners and residents.

First introduced last year, part of the proposed legislation passed into law through Senator Toby Stavisky and Assemblymember Edward Braunstein's Ground Lease Renewal Bill that offers co-op owners and prospective buyers greater flexibility by extending lease renewal periods. After a year of continued advocacy, the Ground Lease Co-op Coalition (GLCC) is renewing its push to advance the remaining provisions meant to establish critical protections for residents in these co-op buildings, ensuring they are no longer at the mercy of billionaire landowners. S2433/A2619 prioritizes the remaining protections that ground lease co-op residents still lack including:

• 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

Originally established to support middle-class homeownership, ground lease co-ops are located across New York City and Westchester, with up to 50% of New York's ground lease co-ops located in Queens, Brooklyn, and the Bronx. Residents in these buildings are predominantly middle class, with an average income slightly above the city's median of $76,000.

"The thousands of New Yorkers living in ground lease co-ops represent the diversity of our city and state: many are longtime residents, middle-income families, and retirees who first built their lives in these homes decades ago," said Senator Liz Krueger. "Like all residents, they deserve the right to keep the homes and communities they have built. This legislation will finally address the legal gaps facing ground lease co-op residents and provide much-needed protections. Let's build on our progress and secure a fairer housing landscape for the 25,000 New Yorkers who reside in them."

"New York prides itself on being a metropolis, a place where communities of all kinds have flourished for generations. But we continue to overlook the needs of an important and unique class of residents among us: ground lease co-op residents. As we work to mitigate our state's housing crisis, New York's electeds must factor them into the equation. Our proposed legislation is essential to preserving the affordability and stability of ground lease co-ops statewide, serving to balance the needs of landowners while protecting families from exploitative practices. We urge our colleagues in both chambers to join us in fighting for New York's ground lease co-ops," said Assemblymember Linda Rosenthal.

At the core of the GLCC's advocacy are the stories of impacted families in ground lease co-ops, such as Carnegie House in Midtown and the Murray Hill Cooperative in Flushing. Both cooperatives face escalating threats of displacement due to exorbitant rent hikes and unyielding landowners. Without intervention, hundreds of families could lose their homes once the ground rent for each co-op resets.

"The families of Carnegie House are eager to see this ground lease legislation officially signed into law once and for all. Our co-op is running out of time to save our homes, our futures, and the community we've shared for decades, as our lease renewal hovers. Without protections, Carnegie House will be one of over one hundred of ground lease co-ops lost to billionaire real estate developers. We simply cannot wait any longer to hold our landlords accountable. We thank Senator Krueger and Assemblymember Rosenthal for working to safeguard New York's ground lease co-ops and grant standard protections to all residents. Now, we call on Albany to follow their lead," said Richard Hirsch, president of the Carnegie House Board of Directors.

"On behalf of Murray Hill Cooperative, we are grateful for Senator Krueger and Assemblymember Rosenthal's continued efforts to protect New York's ground lease co-op residents. Our families are facing displacement at the hands of our landlords who leave us two options: accept an astronomical rent hike or be forced out of our home. With the highest concentration of ground lease co-ops located in Queens and the outer boroughs, our community is on the front lines of this fight. For too long, New York's ground lease co-ops have been excluded and unprotected – it's time for our Senate and Assembly to secure rights for ground lease residents by passing this legislation in its entirety," said Michael Tang, a longtime resident of Murray Hill Cooperative in Flushing, Queens, and a member of the Ground Lease Co-op Coalition.

As the GLCC gears up for its Albany Lobby Day rally on January 27th, members are calling on legislators to prioritize this bill during the 2025-26 session and push for its swift passage.

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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