NY State Senate Bill 2025-S2433A

Senate Bill S2433A

2025-2026 Legislative Session

Establishes certain rights upon the expiration of ground lease residential cooperative apartment buildings

download bill text pdf

Current Bill Status - On Floor Calendar

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 20, 2025	amended on third reading (t) 2433a
Apr 09, 2025	advanced to third reading
Apr 08, 2025	2nd report cal.
Apr 07, 2025	1st report cal.634
Jan 17, 2025	referred to judiciary

Votes

- Apr 7, 2025 - Judiciary Committee Vote
  S2433A
  
  8
  
  Aye
  
  9
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Judiciary Committee Vote: Apr 7, 2025
      
      aye (8)
      
      Gounardes
      
      Hoylman-Sigal
      
      Liu
      
      Mayer
      
      Myrie
      
      Parker
      
      Ramos
      
      Stavisky
      
      nay (9)
      
      Canzoneri-Fitzpatrick
      
      Lanza
      
      Martins
      
      O'Mara
      
      Palumbo
      
      Rhoads
      
      Ryan
      
      Sepúlveda
      
      Skoufis
      
      aye wr (2)
      
      Bailey
      
      Cooney

Bill Amendments

Original

A (Active)

co-Sponsors

View additional co-sponsors

2025-S2433 - Details

See Assembly Version of this Bill:: A2619
Law Section:: Real Property Law
Laws Affected:: Amd §233-c, RP L
Versions Introduced in 2023-2024 Legislative Session:: S7825, A5031

2025-S2433 - Summary

Establishes certain rights upon the expiration of ground lease residential cooperative apartment buildings.

2025-S2433 - Sponsor Memo

                                 
BILL NUMBER: S2433

SPONSOR: KRUEGER
 
TITLE OF BILL:

An act to amend the real property law, in relation to limiting the
amount of rent increases for residential ground lease cooperative apart-
ment buildings and establishing certain rights upon expiration of such
leases

 
PURPOSE:

This bill would limit rent increases for residential ground lease coop-
erative apartment buildings and establish certain rights upon the expi-
ration of such leases.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one amends § 223-c to the real property law to provide basic
protections to residential ground lease cooperative buildings located on
privately owned land. The bill build on existing law to provide residen-
tial ground cooperative buildings the right to renew their leases when

they expire, as well as the right of first refusal if the landowner
chooses to sell or transfer the land underlying a building. It limits
annual increases in the base rent payable by ground lease residential
cooperatives on or after the thirtieth anniversary of their initial
ground lease to 3% or the Consumer Price Index, whichever is greater.
The legislation also grants residential cooperatives the ability to
borrow money when necessary to pay for repairs and capital improvements,
notwithstanding prohibitions or limits in a around lease, unless the
subject ground lease owner denies consent for a reasonable cause within
15 days of receiving a written request. The provisions of this bill do
not apply to ground lease residential buildings located on land owned by
the federal, state, or city government or authority, any Indian nation
or tribe, or any registered charity which purchased land prior to Janu-
ary 1, 2024.

Section two contains a severability clause.

Section three establishes the effective date.

 
JUSTIFICATION:

There are dozens of residential cooperative buildings throughout New
York City containing thousands of homes that do not own the land under-
neath. Instead, private property owners lease the land to ground lease
cooperatives for set periods of time, and the buildings' residents make
rent payments to the landowner through their monthly maintenance fees.

When each building's lease is net to expire, an appraiser is tasked with
evaluating the land's fair market value, which is then used to negotiate
a rent increase between the landowner and the cooperative.  Residential
cooperatives have extremely limited power in these negotiations since
the buildings cannot be physically moved, and existing laws do not
provide the right to lease renewal, limits on rent increases, or any
other protections. In this way, shareholders in ground lease cooper-
atives are in a similar position to manufactured home residents who own
their units but not the land on which they are located and cannot move
the structures.
In recent years, a growing number of owners of the land under ground
lease cooperatives have been demanding rent increases that are so exces-
sive that they put the financial viability of the residential cooper-
atives at risk. There are currently ground lease residential cooper-
atives that are facing rent increases as high as 1,000% from one year to
the next. While ground rent increases of this magnitude would be
extraordinarily difficult for any group of cooperative shareholders to
absorb, they threaten the very viability of the many residential cooper-
ative buildings which are occupied primarily by middle-income residents
on fixed incomes who have lived in their homes for decades. A number of
cooperative buildings with ground leases coming up for renewal in the
coming years face default due to the rent increases being demanded; this
would leave the longtime shareholders without their homes or any equity
while still owning mortgages on units that no longer exist. In certain
cases, the land under ground lease cooperatives has even been explicitly
marketed to prospective investors as an opportunity to obtain a prime
development site for a new luxury building once the existing residential
cooperative is unable to pay the rent demanded up on lease renewal, goes
into default, and is eventually demolished.

Many owners of the land under ground lease cooperatives have also
refused to allow buildings to borrow money required to perform critical
repairs and/or capital improvements. Numerous ground leases contain
language explicitly prohibiting cooperatives from taking on debt over
certain levels regardless of the circumstances. In some cases, property
owners have even prohibited ground lease cooperatives from borrowing
funds to perform repairs ordered by New York City agencies. Given the
high cost of maintaining aging buildings, along with the ongoing need to
make capital improvements to comply with changing laws, improve energy
efficiency and resiliency, and respond to emergencies, it is essential
for ground lease cooperatives to have the ability to borrow funds when
necessary.

As the housing crisis worsens, it is crucial that New York provide basic
protections to ground lease cooperative residents facing displacement
from their homes due to exorbitant rent increases and extremely limited
negotiating power in abnormal market conditions.  This legislation
simply builds upon established state laws granting manufactured home
residents basic rights during the lease renewal process, and if the land
under their homes is sold, by extending comparable protections to ground
lease residential cooperatives that similarly cannot move their build-
ings from the land underneath.

 
FISCAL IMPLICATIONS:

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to all existing
leases and to any renewals, amendments and other extensions of such
leases.

2025-S2433 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2433
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 17, 2025
                                ___________
 
 Introduced by Sens. KRUEGER, CLEARE, GONZALEZ, GOUNARDES, HOYLMAN-SIGAL,
   JACKSON,  LIU, MAYER, MYRIE, PARKER, RAMOS, RIVERA, SCARCELLA-SPANTON,
   SEPULVEDA, STAVISKY -- read twice and ordered printed, and when print-
   ed to be committed to the Committee on Judiciary
 
 AN ACT to amend the real property  law,  in  relation  to  limiting  the
   amount  of  rent  increases  for  residential ground lease cooperative
   apartment buildings and establishing certain rights upon expiration of
   such leases
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 233-c of the real property law, as added by chapter
 371 of the laws of 2024, is amended to read as follows:
   §  233-c. Residential ground lease cooperative apartment buildings. 1.
 Wherever used in this section:
   (a) The term "residential ground lease cooperative apartment building"
 means any and all buildings, improvements or other structures located in
 the state of New York occupied, owned or leased in whole or in part by a
 ground lease residential cooperative, or  any  subsidiary  or  affiliate
 thereof, pursuant to a subject residential cooperative ground lease.
   (b) The term "ground lease residential cooperative" means any New York
 corporation  organized or operating as a housing development fund corpo-
 ration, New York cooperative corporation or cooperative  housing  corpo-
 ration,  including any entity meeting the definition thereof for federal
 income tax purposes, or any person or entity that is a tenant in common,
 co-tenant or joint owner with any such corporation, or which is, direct-
 ly or indirectly through a subsidiary or affiliate thereof, a party to a
 subject residential cooperative ground lease.
   (c) The term "subject residential cooperative ground lease" means  the
 lease  agreement,  together  with any amendments or other related agree-
 ments including any forbearance, settlement, tenancy in common or  other
 similar  agreements  related  thereto,  pursuant to which a ground lease
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04667-03-5

 S. 2433                             2
 
 residential cooperative leases, occupies or otherwise uses for  residen-
 tial,  commercial,  or  other  ancillary  purposes the ground lease real
 property from one or more subject ground lease owners.
   (d)  The  term  "ground  lease real property" means all real property,
 including improvements thereon, all or any portion of which  is  leased,
 rented,  licensed  or otherwise provided for use to a ground lease resi-
 dential cooperative pursuant to a subject residential cooperative ground
 lease, including any portion thereof that may be subleased or  otherwise
 used for ancillary retail, parking, or commercial purposes.
   (e)  The  term "subject ground lease owners" means any and all persons
 or entities, whether natural  persons,  estates,  trusts,  corporations,
 partnerships  or  other  entities,  other than any excepted ground lease
 owner, that holds title to or is the owner, whether by the entirety,  as
 tenants  in  common  or  otherwise,  of ground lease real property or is
 otherwise the landlord under any subject residential cooperative  ground
 lease.
   (f) The term "excepted ground lease owner" means (i) the United States
 federal government, the state of New York, the city of New York, and any
 agency,  municipality  or  political subdivision of any of the foregoing
 thereof, any entity owned or controlled by any of the foregoing, includ-
 ing but not limited to, the Battery Park city authority,  the  Roosevelt
 Island  Operating  Corporation, the Queens West Development Corporation,
 the Brooklyn Bridge Park Development  Corporation,  the  New  York  City
 Educational  Construction Fund, and the New York City Housing Authority,
 (ii) any charity approved under section 501(c) of the  internal  revenue
 code  which  acquired  its interest as the owner or landlord of a ground
 lease real property prior to January first,  two  thousand  twenty-four,
 and  (iii)  any Indian nation, tribe or band as such lands are described
 under and protected by the Indian law or title twenty-five of the United
 States Code, but shall exclude any private foundation within the meaning
 of section five hundred nine of the internal revenue code.
   (G) THE TERM "BASE RENT" MEANS FOR ANY YEAR  THE  PAYMENTS,  INCLUDING
 ANY  CONSUMER  PRICE  INDEX  OR OTHER SIMILAR ADJUSTMENT PAYMENTS, OTHER
 THAN ADDITIONAL RENT, REQUIRED TO BE MADE TO THE  SUBJECT  GROUND  LEASE
 OWNERS  FOR  SUCH  YEAR  PURSUANT  TO  A SUBJECT RESIDENTIAL COOPERATIVE
 GROUND LEASE.
   (H) THE TERM "ADDITIONAL RENT" MEANS, FOR ANY YEAR, THE AMOUNTS  SPENT
 OR  BORNE  BY  THE GROUND LEASE RESIDENTIAL COOPERATIVE DURING SUCH YEAR
 PURSUANT TO, OR IN ORDER TO COMPLY WITH, THE SUBJECT RESIDENTIAL COOPER-
 ATIVE GROUND LEASE FOR THE PAYMENT  OF  REAL  ESTATE  TAXES,  INSURANCE,
 REPAIR,  MAINTENANCE,  INCLUDING, WITHOUT LIMITATION, MAINTENANCE AS MAY
 BE REQUIRED PURSUANT TO ANY FACADE INSPECTION SAFETY PROGRAM IMPLEMENTED
 BY ANY CITY, MUNICIPALITY OR OTHER GOVERNMENT ENTITY WITHIN THE STATE OF
 NEW YORK, AND/OR OTHER CAPITAL IMPROVEMENTS FOR OR WITH RESPECT  TO  THE
 RESIDENTIAL GROUND LEASE COOPERATIVE APARTMENT BUILDING.
   (I)  THE TERM "MAXIMUM ANNUAL RENT INCREASE PERCENTAGE" MEANS, FOR ANY
 YEAR, THE GREATER OF: (I) THREE PERCENT (3%); AND  (II)  THE  PERCENTAGE
 CHANGE  IN  THE CONSUMER PRICE INDEX (FOR ALL URBAN CONSUMERS, U.S. CITY
 AVERAGE, ALL ITEMS, NOT SEASONALLY ADJUSTED), AS PUBLISHED BY THE UNITED
 STATES DEPARTMENT OF LABOR FOR SUCH YEAR.
   (J) "COMMISSIONER" MEANS THE COMMISSIONER OF THE DIVISION  OF  HOUSING
 AND COMMUNITY RENEWAL.
   2.  Notwithstanding  any  term  of  a  subject residential cooperative
 ground lease to the  contrary,  if  a  subject  residential  cooperative
 ground  lease  authorizes  the  ground  lease residential cooperative to
 renew or extend its lease at the sole option of the ground  lease  resi-
 S. 2433                             3
 
 dential  cooperative,  then the ground lease residential cooperative may
 exercise such right to renew or extend at any time prior to the  expira-
 tion  of  the subject residential cooperative ground lease in accordance
 with all other terms thereof.
   3.  ANNUAL INCREASES IN BASE RENT PAYABLE BY ANY GROUND LEASE RESIDEN-
 TIAL COOPERATIVE FROM AND AFTER THE THIRTIETH ANNIVERSARY OF THE INITIAL
 DATE OF THE SUBJECT RESIDENTIAL GROUND LEASE SHALL IN  NO  EVENT  EXCEED
 THE  MAXIMUM ANNUAL RENT INCREASE PERCENTAGE OF THE BASE RENT PAYABLE BY
 THE GROUND LEASE RESIDENTIAL COOPERATIVE IN THE PRIOR YEAR. IN THE EVENT
 THE SUBJECT RESIDENTIAL COOPERATIVE GROUND LEASE PROVIDES FOR  INCREASES
 IN  BASE  RENT  ON  A  PERIODIC BASIS LESS FREQUENTLY THAN ANNUALLY, THE
 INCREASE IN BASE RENT FOR ANY PERIOD MAY NOT  REPRESENT  MORE  THAN  THE
 COMPOUND  INCREASE  THAT  RESULTS  FROM APPLYING THE MAXIMUM ANNUAL RENT
 INCREASE PERCENTAGE FOR EACH APPLICABLE YEAR  ABOVE  THE  BASE  RENT  IN
 EFFECT  AS  OF  THE  LAST PRIOR INCREASE IN BASE RENT. THE PROVISIONS OF
 THIS SUBDIVISION SHALL APPLY AS A LIMIT ON ANNUAL INCREASES IN BASE RENT
 REGARDLESS OF THE METHODOLOGY FOR  DETERMINING  THE  BASE  RENT  OR  ANY
 INCREASES  THEREIN  AS  SET FORTH IN THE SUBJECT RESIDENTIAL COOPERATIVE
 GROUND LEASE INSTRUMENT.
   4. (A) SUBJECT TO PARAGRAPH (B) OF THIS SUBDIVISION, AFTER THE  EFFEC-
 TIVE  DATE  OF  THE CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-FIVE THAT
 AMENDED THIS SECTION, TO THE EXTENT THAT A SUBJECT  RESIDENTIAL  COOPER-
 ATIVE GROUND LEASE DOES NOT OTHERWISE CONTAIN A RIGHT OR OPTION TO RENEW
 THAT CONTINUES TO BE EXERCISABLE BY THE RESIDENTIAL GROUND LEASE COOPER-
 ATIVE,  ANY RESIDENTIAL GROUND LEASE COOPERATIVE SHALL HAVE THE RIGHT TO
 RENEW ITS SUBJECT RESIDENTIAL COOPERATIVE GROUND LEASE ON THE SAME TERMS
 AND CONDITIONS, SUBJECT TO  THIS  SECTION,  AS  IN  EFFECT  AT  TIME  OF
 RENEWAL,  WITH  SUCH RENEWAL EXERCISABLE AT ANY TIME PRIOR TO THE END OF
 THE TERM OR WITHIN NINETY DAYS AFTER HAVING RECEIVED WRITTEN NOTICE FROM
 THE SUBJECT GROUND LEASE OWNERS OF THE EXPIRATION OR TERMINATION OF  THE
 SUBJECT  RESIDENTIAL COOPERATIVE GROUND LEASE. ANY RENEWAL TERM PURSUANT
 TO THE FOREGOING SHALL, SUBJECT TO PARAGRAPH (B) OF THIS SUBDIVISION, BE
 EQUAL TO THE LESSER OF THE TERM OF SUCH SUBJECT RESIDENTIAL  COOPERATIVE
 GROUND  LEASE  PRIOR  TO SUCH EXPIRATION OR TERMINATION OR THIRTY YEARS,
 AND SHALL OCCUR AUTOMATICALLY AND SUCCESSIVELY, UNLESS THE SUBJECT RESI-
 DENTIAL COOPERATIVE GROUND LEASE AFFIRMATIVELY ELECTS TO  NOT  SO  RENEW
 AND  HAS  PROVIDED  WRITTEN  NOTICE  OF  SUCH NON-RENEWAL TO THE SUBJECT
 GROUND LEASE OWNERS.
   (B) NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, IN THE CASE  OF
 ANY  RENEWAL THAT IS NOT ALREADY PROVIDED FOR IN THE SUBJECT RESIDENTIAL
 COOPERATIVE GROUND LEASE, A SUBJECT GROUND LEASE OWNER MAY ELECT NOT  TO
 RENEW  A  SUBJECT RESIDENTIAL COOPERATIVE GROUND LEASE, AND IN ANY EVENT
 MAY BRING AND MAINTAIN ANY ACTION FOR EVICTION, IN  EACH  CASE  FOR  THE
 REASONS  SET  FORTH IN SECTION SEVEN HUNDRED ELEVEN OF THE REAL PROPERTY
 ACTIONS AND PROCEEDINGS LAW.
   5. AFTER THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND
 TWENTY-FIVE THAT AMENDED THIS SECTION, TO THE EXTENT A SUBJECT  RESIDEN-
 TIAL GROUND LEASE CONTAINS ANY PROHIBITION, SPECIFIED DOLLAR LIMITATIONS
 OR  OTHER REQUIREMENTS FOR OR CONDITIONED ON OBTAINING THE PRIOR WRITTEN
 CONSENT OF THE SUBJECT GROUND LEASE OWNER WITH RESPECT TO THE INCURRENCE
 OF INDEBTEDNESS OR BORROWING OF MONEY  BY  A  RESIDENTIAL  GROUND  LEASE
 COOPERATIVE  AND/OR  THE ENCUMBRANCE OF ITS INTEREST IN THE GROUND LEASE
 APARTMENT BUILDING IN CONNECTION  THEREWITH,  IN  EACH  CASE  WHERE  THE
 PRIMARY PURPOSE OF SUCH INDEBTEDNESS AND/OR BORROWED MONEY IS TO PROVIDE
 PROCEEDS  OR OTHER CREDIT SUPPORT TO PAY OR FUND REPAIRS, MAINTENANCE OR
 OTHER CAPITAL IMPROVEMENTS ON OR WITH RESPECT TO THE GROUND  LEASE  REAL
 S. 2433                             4
 
 PROPERTY  AND/OR THE GROUND LEASE APARTMENT BUILDING, THE SUBJECT GROUND
 LEASE OWNER MAY ONLY REFUSE TO GRANT SUCH CONSENT FOR  REASONABLE  CAUSE
 AND MUST PROVIDE THE RESIDENTIAL GROUND LEASE COOPERATIVE WITH A WRITTEN
 STATEMENT  THAT SETS FORTH THE BASIS OF REFUSAL WITHIN FIFTEEN DAYS OF A
 WRITTEN REQUEST FOR PERMISSION FROM THE RESIDENTIAL GROUND LEASE COOPER-
 ATIVE. THE FOREGOING SHALL NOT APPLY TO ANY MORTGAGE OR  GRANTING  OF  A
 SECURITY  INTEREST  IN  THE  GROUND  LEASE REAL PROPERTY, OTHER THAN THE
 RESIDENTIAL GROUND LEASE COOPERATIVE APARTMENT BUILDING ITSELF  SO  LONG
 AS  IT  IS  SUBORDINATE  TO THE RIGHTS OF THE SUBJECT GROUND LEASE OWNER
 UNDER THE SUBJECT RESIDENTIAL COOPERATIVE GROUND LEASE.
   6. (A) IF, AFTER THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF  TWO
 THOUSAND TWENTY-FIVE THAT AMENDED THIS SECTION, ANY SUBJECT GROUND LEASE
 OWNER  PROPOSES  TO  DIRECTLY  OR  INDIRECTLY SELL, ASSIGN, EXCHANGE, OR
 OTHERWISE TRANSFER ANY DIRECT OR INDIRECT INTEREST IN ANY  GROUND  LEASE
 REAL PROPERTY, INCLUDING, WITHOUT LIMITATION, ANY INDIRECT HYPOTHECATION
 BY  WAY OF TRANSFERS OF INTERESTS IN ANY ENTITY THAT IS ITSELF A SUBJECT
 GROUND LEASE  LANDLORD OR AN OWNER THEREOF AND/OR THE  SUBJECT  RESIDEN-
 TIAL COOPERATIVE  GROUND  LEASE ITSELF, THE SUBJECT GROUND  LEASE  OWNER
 SHALL  PROVIDE  THE  RESIDENTIAL  GROUND  LEASE COOPERATIVE WITH WRITTEN
 NOTICE THEREOF CONTAINING THE PRICE AND ALL OTHER TERMS  AND  CONDITIONS
 OF  SUCH  DIRECT OR INDIRECT PROPOSED SALE, ASSIGNMENT, EXCHANGE, TRANS-
 FER, OR OTHER SIMILAR CONVEYANCE. THE RESIDENTIAL GROUND  LEASE  COOPER-
 ATIVE  SHALL  HAVE  THE  RIGHT  TO  PURCHASE  THE  INTEREST  BEING SOLD,
 ASSIGNED, EXCHANGED, TRANSFERRED, OR CONVEYED AT THE SAME PRICE  AND  ON
 SUBSTANTIALLY  SIMILAR  TERMS AND CONDITIONS BY PROVIDING WRITTEN NOTICE
 TO THE SUBJECT GROUND LEASE OWNER WITHIN  ONE  HUNDRED  TWENTY  DAYS  OF
 RECEIPT  OF  THE  AFOREMENTIONED  WRITTEN NOTICE FROM THE SUBJECT GROUND
 LEASE OWNER. THE CLOSING OF THE PURCHASE BY THE RESIDENTIAL GROUND LEASE
 COOPERATIVE SHALL OCCUR WITHIN THE TIME FRAME AND PURSUANT TO PROCEDURES
 ADOPTED BY THE COMMISSIONER PURSUANT TO PARAGRAPH (D) OF  THIS  SUBDIVI-
 SION.
   (B)  IF  AN  OFFER TO PURCHASE BY THE RESIDENTIAL GROUND LEASE COOPER-
 ATIVE IS NOT DELIVERED WITHIN SUCH ONE HUNDRED TWENTY DAY PERIOD,  THEN,
 UNLESS  THE  SUBJECT GROUND LEASE OWNER THEREAFTER ELECTS TO DIRECTLY OR
 INDIRECTLY SELL, ASSIGN, EXCHANGE, OR OTHERWISE TRANSFER ANY  DIRECT  OR
 INDIRECT  INTEREST  IN  ANY  GROUND LEASE REAL PROPERTY AT A PRICE LOWER
 THAN THE PRICE SPECIFIED IN THE NOTICE TO THE RESIDENTIAL  GROUND  LEASE
 COOPERATIVE  OR  ON TERMS DIFFERENT FROM THOSE PRESENTED TO THE RESIDEN-
 TIAL GROUND LEASE COOPERATIVE, THE SUBJECT GROUND  LEASE  OWNER  HAS  NO
 FURTHER  OBLIGATIONS UNDER THIS SECTION, UNLESS THE SUBJECT GROUND LEASE
 OWNER DOES NOT DIRECTLY OR INDIRECTLY SELL, ASSIGN, EXCHANGE, OR  OTHER-
 WISE  TRANSFER  ANY DIRECT OR INDIRECT INTEREST IN ANY GROUND LEASE REAL
 PROPERTY IN ACCORDANCE WITH THE FOREGOING WITHIN ONE HUNDRED TWENTY DAYS
 AFTER THE EXPIRATION OF THE ONE HUNDRED  TWENTY  DAY  PERIOD  COMMENCING
 WITH DELIVERY OF THE WRITTEN NOTICE OF THE PROPOSED SALE TO THE RESIDEN-
 TIAL  GROUND  LEASE  COOPERATIVE,  IN WHICH CASE THE PROVISIONS OF PARA-
 GRAPHS (A) AND (C) OF THIS SUBDIVISION SHALL CONTINUE TO APPLY.
   (C) IF THE SUBJECT GROUND LEASE OWNER, AFTER SUCH ONE  HUNDRED  TWENTY
 DAY  PERIOD, ELECTS TO DIRECTLY OR INDIRECTLY SELL, ASSIGN, EXCHANGE, OR
 OTHERWISE TRANSFER ANY DIRECT OR INDIRECT INTEREST IN ANY  GROUND  LEASE
 REAL PROPERTY AT A PRICE LOWER THAN THE PRICE SPECIFIED IN THE NOTICE TO
 THE  RESIDENTIAL  GROUND  LEASE  COOPERATIVE  OR ON TERMS DIFFERENT FROM
 THOSE PRESENTED TO THE RESIDENTIAL GROUND LEASE  COOPERATIVE,  THEN  THE
 RESIDENTIAL GROUND LEASE COOPERATIVE SHALL BE ENTITLED TO NOTICE THEREOF
 AND  SHALL  HAVE  AN ADDITIONAL ONE HUNDRED TWENTY DAYS AFTER RECEIPT OF
 NOTICE OF THE REVISED TERMS TO DELIVER TO THE SUBJECT GROUND LEASE OWNER
 S. 2433                             5
 
 A WRITTEN NOTICE INDICATING EXERCISE OF SUCH  RESIDENTIAL  GROUND  LEASE
 COOPERATIVE'S  RIGHT  TO  PURCHASE WHICH MEETS THE REVISED PRICE, TERMS,
 AND CONDITIONS AS PRESENTED BY THE SUBJECT  GROUND  LEASE  OWNER.    THE
 CLOSING  OF  THE  PURCHASE  BY SUCH RESIDENTIAL GROUND LEASE COOPERATIVE
 SHALL OCCUR WITHIN THE TIME FRAME AND PURSUANT TO PROCEDURES ADOPTED  BY
 THE COMMISSIONER PURSUANT TO PARAGRAPH (D) OF THIS SUBDIVISION.
   (D)  THE  COMMISSIONER  SHALL  ADOPT THE PROCEDURES IN CONNECTION WITH
 THIS SUBDIVISION NO LATER THAN ONE YEAR AFTER THE EFFECTIVE DATE OF  THE
 CHAPTER  OF  THE  LAWS  OF  TWO  THOUSAND  TWENTY-FIVE THAT AMENDED THIS
 SECTION TO GIVE EFFECT TO CLOSING TERMS AND CONDITIONS  ASSOCIATED  WITH
 ANY PURCHASE AND SALE CONTEMPLATED BY THIS SUBDIVISION.
   (E)  THIS  SECTION  DOES  NOT  APPLY TO PURCHASES OF GROUND LEASE REAL
 PROPERTY BY A GOVERNMENTAL ENTITY UNDER ITS POWERS OF EMINENT DOMAIN.
   § 2. If any clause, sentence, paragraph, subdivision, section or  part
 of  this act shall be adjudged by any court of competent jurisdiction to
 be invalid, such judgment shall not affect, impair,  or  invalidate  the
 remainder thereof, but shall be confined in its operation to the clause,
 sentence,  paragraph,  subdivision,  section  or  part  thereof directly
 involved in the controversy in  which  such  judgment  shall  have  been
 rendered. It is hereby declared to be the intent of the legislature that
 this act would have been enacted even if such invalid provisions had not
 been included herein.
   §  3.  This  act  shall take effect immediately and shall apply to all
 existing leases as of such effective date and to  any  renewals,  amend-
 ments and other extensions of such leases.

co-Sponsors

View additional co-sponsors

2025-S2433A (ACTIVE) - Details

See Assembly Version of this Bill:: A2619
Law Section:: Real Property Law
Laws Affected:: Amd §233-c, RP L
Versions Introduced in 2023-2024 Legislative Session:: S7825, A5031

2025-S2433A (ACTIVE) - Summary

Establishes certain rights upon the expiration of ground lease residential cooperative apartment buildings.

2025-S2433A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2433A

SPONSOR: KRUEGER
 
TITLE OF BILL:

An act to amend the real property law, the emergency tenant protection
act of nineteen seventy-four, and the administrative code of the city of
New York, in relation to establishing certain rights upon expiration of
leases for ground lease residential cooperative apartment buildings

 
PURPOSE:

This bill would establish certain rights upon the expiration of leases
for residential ground lease cooperative apartment buildings.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one amends § 223-c of the real property law to provide basic
protections to residential ground lease cooperative buildings located on
privately owned land. The bill provides any resident entitled to occu-
pancy in the co-op where the ground lease is subject to termination of
expiration is deemed to be a tenant upon expiration or termination of

the ground lease. The ground lease owner would be required to offer such
tenants rental leases pursuant to the Emergency Tenant Protection Act,
the Rent Stabilization Law, or any regulations, rules, and polices
enacted pursuant thereto or the good cause eviction law, as applicable
to the building. Additionally, the bill provides the residential ground
lease cooperative building the right of first refusal if the landowner
chooses to sell or transfer the land underlying a building. The legis-
lation also grants residential cooperatives the ability to borrow money
when necessary to pay for repairs and capital improvements, unless the
subject ground lease owner denies consent for a reasonable cause within
15 days of receiving a written request. The provisions of this bill do
not apply to ground lease residential buildings located on land owned by
the federal, state, or city government or authority, any Indian nation
or tribe, or any registered charity which purchased land prior to Janu-
ary 1, 2024.

Sections two and three amend the Emergency Tenant Protection Act and the
Rent Stabilization Law to provide how the initial rent shall be set if a
deconversion occurs.

Section four contains a severability clause.

Section five establishes the effective date.

 
JUSTIFICATION:

There are dozens of residential cooperative buildings throughout New
York City containing thousands of homes that do not own the land under-
neath. Instead, private property owners lease the land to ground lease
cooperatives for set periods of time, and the buildings' residents make
rent payments to the landowner through their monthly maintenance fees.

When each building's lease is set to expire, an appraiser is tasked with
evaluating the land's fair market value, which is then used to negotiate
a rent increase between the landowner and the cooperative.  Residential
cooperatives have extremely limited power in these negotiations since
the buildings cannot be physically moved, and existing laws do not
provide the right to lease renewal, limits on rent increases, or any
other protections. In this way, shareholders in ground lease cooper-
atives are in a similar position to manufactured home residents who own
their units but not the land on which they are located and cannot move
the structures.

In recent years, a growing number of owners of the land under ground
lease cooperatives have been demanding rent increases that are so exces-
sive that they put the financial viability of the residential cooper-
atives at risk. There are currently ground lease residential cooper-
atives that are facing rent increases as high as 1,000% from one year to
the next. While ground rent increases of this magnitude would be
extraordinarily difficult for any group of cooperative shareholders to
absorb, they threaten the very viability of the many residential cooper-
ative buildings which are occupied primarily by middle-income residents
on fixed incomes who have lived in their homes for decades. A number of
cooperative buildings with ground leases coming.up for renewal in.the
coming years face default due to the rent increases being demanded and
there is a lack of clarity about what happens if a cooperative building
defaults or the ground lease is terminated. There is the possibility
that this would leave longtime shareholders without their homes.

Many owners of the land under ground lease cooperatives have also
refused to allow buildings to borrow money required to perform critical
repairs and/or capital improvements. Numerous ground leases contain
language explicitly prohibiting cooperatives from taking on debt over
certain levels regardless of the circumstances. In some cases, property
owners have even prohibited ground lease cooperatives from borrowing
funds to perform repairs ordered by New York City agencies. Given the
high cost of maintaining aging buildings, along with the ongoing need to
make capital improvements to comply with changing laws, improve energy
efficiency and resiliency, and respond to emergencies, it is essential
for ground lease cooperatives to have the ability to borrow funds when
necessary.

As the housing crisis worsens, it is crucial that New York provide basic
protections to ground lease cooperative residents facing displacement
from their homes due to exorbitant rent increases and extremely limited
negotiating power in abnormal market conditions.  This legislation
simply provides transparency to shareholders if their cooperative build-
ing defaults, and if the land under their homes is sold, by extends
protections comparable to established state laws for manufactured home
residents to ground lease residents to ground lease residential cooper-
atives that similarly cannot move their buildings from the land under-
neath.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately, and shall apply to all existing
leases and all leases issued, renewed, modified, altered or amended on
or after such date; provided, however, that the amendments to section
26-512 of chapter 4 of title 26 of the administrative code of the city
of New York made by section three of this act shall expire on the same
date as such law expires and shall not affect the expiration of such law
as provided under section 26-520 of such law.

2025-S2433A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2433--A
     Cal. No. 634
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 17, 2025
                                ___________
 
 Introduced by Sens. KRUEGER, CLEARE, GONZALEZ, GOUNARDES, HOYLMAN-SIGAL,
   JACKSON,  LIU, MAYER, MYRIE, PARKER, RAMOS, RIVERA, SCARCELLA-SPANTON,
   STAVISKY -- read twice and ordered printed, and  when  printed  to  be
   committed  to  the  Committee  on Judiciary -- reported favorably from
   said committee, ordered to first and second report, ordered to a third
   reading, amended and ordered reprinted, retaining  its  place  in  the
   order of third reading
 
 AN  ACT  to amend the real property law, the emergency tenant protection
   act of nineteen seventy-four, and the administrative code of the  city
   of  New  York, in relation to establishing certain rights upon expira-
   tion of leases for  ground  lease  residential  cooperative  apartment
   buildings
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 233-c of the real property law is amended by adding
 three new subdivisions 3, 4, and 5 to read as follows:
   3. (A) WITHIN TEN DAYS OF THE EXPIRATION OR TERMINATION OF  A  SUBJECT
 RESIDENTIAL COOPERATIVE GROUND LEASE, THE GROUND LEASE RESIDENTIAL COOP-
 ERATIVE SHALL INITIATE THE PROCESS TO DISSOLVE THE GROUND LEASE RESIDEN-
 TIAL  COOPERATIVE  AS  PRESCRIBED BY THE APPLICABLE LAWS UNDER WHICH THE
 GROUND LEASE RESIDENTIAL COOPERATIVE WAS FORMED.
   (B) UPON DECONVERSION, RESIDENTS ENTITLED TO OCCUPANCY IN SUCH  GROUND
 LEASE  RESIDENTIAL  COOPERATIVE  IMMEDIATELY  PRIOR  TO THE DECONVERSION
 SHALL BE DEEMED TO BE TENANTS. THE SUBJECT  GROUND  LEASE  OWNERS  SHALL
 OFFER  SUCH  TENANTS  RENTAL  LEASES  PURSUANT  TO  THE EMERGENCY TENANT
 PROTECTION ACT OF NINETEEN SEVENTY-FOUR, THE RENT STABILIZATION  LAW  OF
 NINETEEN  SIXTY-NINE  AND  ANY  REGULATIONS,  RULES AND POLICIES ENACTED
 PURSUANT THERETO OR THE GOOD CAUSE EVICTION LAW OF ARTICLE SIX-A OF THIS
 CHAPTER, AS APPLICABLE TO THE BUILDING.
   4.  (A) IF ANY SUBJECT RESIDENTIAL COOPERATIVE GROUND LEASE  DOES  NOT
 CONTAIN  EXPRESS PROVISIONS PROHIBITING A GROUND LEASE RESIDENTIAL COOP-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD04667-07-5
 S. 2433--A                          2
 
 ERATIVE FROM ENCUMBERING ITS INTEREST IN A SUBJECT  RESIDENTIAL  COOPER-
 ATIVE  GROUND LEASE, A GROUND LEASE RESIDENTIAL COOPERATIVE MAY ENCUMBER
 UP TO AND INCLUDING ITS ENTIRE  INTEREST  IN  SUCH  SUBJECT  RESIDENTIAL
 COOPERATIVE  GROUND  LEASE.    IF  SUCH  SUBJECT RESIDENTIAL COOPERATIVE
 GROUND LEASE CONTAINS PROVISIONS RESTRICTING THE GROUND  LEASE  RESIDEN-
 TIAL  COOPERATIVE'S  ABILITY  TO ENCUMBER ITS INTEREST, THE GROUND LEASE
 RESIDENTIAL COOPERATIVE SHALL OBTAIN THE SUBJECT  GROUND  LEASE  OWNER'S
 WRITTEN PERMISSION PRIOR TO SUCH ENCUMBRANCE.
   (B)  IF THE GROUND LEASE RESIDENTIAL COOPERATIVE IS REQUIRED TO OBTAIN
 THE SUBJECT GROUND LEASE OWNER'S PERMISSION TO ENCUMBER THE GROUND LEASE
 RESIDENTIAL COOPERATIVE'S INTEREST, THE SUBJECT GROUND LEASE  OWNER  MAY
 ONLY  REFUSE TO GRANT SUCH CONSENT FOR REASONABLE CAUSE AND MUST PROVIDE
 THE GROUND LEASE RESIDENTIAL COOPERATIVE WITH A WRITTEN  STATEMENT  THAT
 SETS FORTH THE BASIS OF REFUSAL WITHIN FIFTEEN DAYS OF A WRITTEN REQUEST
 FOR  PERMISSION FROM THE GROUND LEASE RESIDENTIAL COOPERATIVE. THE FORE-
 GOING SHALL NOT APPLY TO ANY MORTGAGE OR GRANTING OF A SECURITY INTEREST
 IN THE GROUND LEASE REAL PROPERTY, OTHER  THAN  THE  RESIDENTIAL  GROUND
 LEASE COOPERATIVE APARTMENT BUILDING ITSELF SO LONG AS IT IS SUBORDINATE
 TO  THE RIGHTS OF THE SUBJECT GROUND LEASE OWNER UNDER THE SUBJECT RESI-
 DENTIAL COOPERATIVE GROUND LEASE.
   5. (A) IF ANY SUBJECT GROUND LEASE OWNER TAKES ANY ACTION TO MARKET OR
 OFFER THE GROUND LEASE REAL PROPERTY FOR SALE, OR RECEIVES A  BONA  FIDE
 OFFER  TO  PURCHASE  THE  GROUND  LEASE  REAL PROPERTY THAT SUCH SUBJECT
 GROUND LEASE OWNER INTENDS TO ACCEPT OR RESPOND TO WITH A  COUNTEROFFER,
 THE  SUBJECT GROUND LEASE OWNER SHALL INCLUDE A NOTICE STATING THAT SUCH
 ACCEPTANCE OR COUNTEROFFER SHALL BE SUBJECT TO THE RIGHT OF  THE  GROUND
 LEASE RESIDENTIAL COOPERATIVE TO PURCHASE THE GROUND LEASE REAL PROPERTY
 PURSUANT  TO  THIS  SUBDIVISION. NOTWITHSTANDING ANY PROVISION OF LAW OR
 AGREEMENT TO THE CONTRARY, EVERY AGREEMENT TO PURCHASE  A  GROUND  LEASE
 REAL PROPERTY BY A PROSPECTIVE PURCHASER OF A GROUND LEASE REAL PROPERTY
 SHALL  BE  SUBJECT  TO THE RIGHT OF THE GROUND LEASE RESIDENTIAL COOPER-
 ATIVE TO PURCHASE THE GROUND LEASE REAL PROPERTY PURSUANT TO THIS SUBDI-
 VISION.
   (B) (I) IF A SUBJECT GROUND LEASE OWNER RECEIVES A BONA FIDE OFFER  TO
 PURCHASE  A  GROUND  LEASE  REAL PROPERTY THAT SUCH SUBJECT GROUND LEASE
 OWNER INTENDS TO ACCEPT OR RESPOND TO WITH A COUNTEROFFER, SUCH  SUBJECT
 GROUND LEASE OWNER SHALL NOTIFY THE GROUND LEASE RESIDENTIAL COOPERATIVE
 AND THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL.
   (II)  THE  SUBJECT  GROUND  LEASE  OWNER'S  WRITTEN NOTIFICATION SHALL
 STATE:
   (A) THE PRICE;
   (B) THE MATERIAL TERMS AND CONDITIONS OF SALE UPON WHICH SUCH  SUBJECT
 GROUND LEASE OWNER WOULD SELL THE GROUND LEASE REAL PROPERTY; AND
   (C)  THAT  THE  GROUND  LEASE  RESIDENTIAL COOPERATIVE HAS ONE HUNDRED
 TWENTY DAYS TO EXERCISE THEIR RIGHT TO PURCHASE THE  GROUND  LEASE  REAL
 PROPERTY IN ACCORDANCE WITH THIS SUBDIVISION.
   (III) (A) THE GROUND LEASE RESIDENTIAL COOPERATIVE SHALL, WITHIN SIXTY
 DAYS  OF  RECEIPT OF NOTICE FROM THE SUBJECT GROUND LEASE OWNER, DELIVER
 TO THE SUBJECT GROUND LEASE OWNER A NOTICE OF INTENT TO MAKE AN OFFER TO
 PURCHASE THE GROUND LEASE REAL PROPERTY. IF SUCH NOTICE IS NOT DELIVERED
 WITHIN THE SIXTY DAYS, THE SUBJECT GROUND LEASE  OWNER  HAS  NO  FURTHER
 OBLIGATION UNDER THIS SUBDIVISION.
   (B)  IF  THE GROUND LEASE RESIDENTIAL COOPERATIVE DELIVERS SUCH INTENT
 TO THE SUBJECT GROUND LEASE OWNER AS REQUIRED  BY  CLAUSE  (A)  OF  THIS
 SUBPARAGRAPH,  THE  GROUND  LEASE RESIDENTIAL COOPERATIVE SHALL HAVE THE
 RIGHT TO PURCHASE THE GROUND LEASE  REAL  PROPERTY;  PROVIDED  THAT  THE
 S. 2433--A                          3

 GROUND LEASE RESIDENTIAL COOPERATIVE SHALL HAVE DELIVERED TO THE SUBJECT
 GROUND LEASE OWNER AN EXECUTED OFFER TO PURCHASE WHICH MEETS THE IDENTI-
 CAL  PRICE,  TERMS, AND CONDITIONS OF THE OFFER OR COUNTEROFFER PROVIDED
 IN THE NOTICE OF THE SUBJECT GROUND LEASE OWNER WITHIN ONE HUNDRED TWEN-
 TY DAYS OF RECEIPT OF NOTICE FROM THE SUBJECT GROUND LEASE OWNER, UNLESS
 OTHERWISE  AGREED  TO  IN  WRITING. DURING THIS TIME PERIOD, THE SUBJECT
 GROUND LEASE OWNER SHALL NOT  ACCEPT  A  FINAL  UNCONDITIONAL  OFFER  TO
 PURCHASE THE GROUND LEASE REAL PROPERTY.
   (C)  IF  AN  OFFER TO PURCHASE BY THE GROUND LEASE RESIDENTIAL COOPER-
 ATIVE IS NOT DELIVERED WITHIN SUCH ONE HUNDRED TWENTY DAY PERIOD,  THEN,
 UNLESS THE SUBJECT GROUND LEASE OWNER THEREAFTER ELECTS TO OFFER TO SELL
 THE GROUND LEASE REAL PROPERTY AT A PRICE LOWER THAN THE PRICE SPECIFIED
 IN  THE  NOTICE  TO THE GROUND LEASE RESIDENTIAL COOPERATIVE OR ON TERMS
 SUBSTANTIALLY DIFFERENT FROM THOSE PRESENTED TO THE GROUND  LEASE  RESI-
 DENTIAL COOPERATIVE, THE SUBJECT GROUND LEASE OWNER HAS NO FURTHER OBLI-
 GATIONS UNDER THIS SUBDIVISION.
   (D)  IF  THE SUBJECT GROUND LEASE OWNER, AFTER SUCH ONE HUNDRED TWENTY
 DAY PERIOD, ELECTS TO OFFER TO SELL THE GROUND LEASE REAL PROPERTY AT  A
 PRICE  LOWER  THAN  THE  PRICE SPECIFIED IN THE NOTICE GIVEN OR AT TERMS
 SUBSTANTIALLY DIFFERENT FROM THOSE PRESENTED TO THE GROUND  LEASE  RESI-
 DENTIAL COOPERATIVE, THEN THE GROUND LEASE RESIDENTIAL COOPERATIVE SHALL
 BE  ENTITLED  TO NOTICE THEREOF AND SHALL HAVE AN ADDITIONAL THIRTY DAYS
 AFTER RECEIPT OF NOTICE OF THE REVISED TERMS TO DELIVER TO  THE  SUBJECT
 GROUND LEASE OWNER AN EXECUTED OFFER TO PURCHASE WHICH MEETS THE REVISED
 PRICE,  TERMS,  AND  CONDITIONS AS PRESENTED BY THE SUBJECT GROUND LEASE
 OWNER.
   (E) THIS SUBDIVISION DOES NOT APPLY TO:
   (I) ANY CONVEYANCE OF AN INTEREST IN  A  GROUND  LEASE  REAL  PROPERTY
 INCIDENTAL TO THE FINANCING OF SUCH GROUND LEASE REAL PROPERTY.
   (II)  THE  PURCHASE  OF A GROUND LEASE REAL PROPERTY BY A GOVERNMENTAL
 ENTITY UNDER ITS POWERS OF EMINENT DOMAIN.
   (F) NOTHING IN THIS SUBDIVISION  SHALL  BE  CONSTRUED  TO  COMPEL  THE
 SUBJECT  GROUND LEASE OWNER TO DIVIDE THE LAND AND SELL IT TO INDIVIDUAL
 SHAREHOLDERS OF THE GROUND LEASE RESIDENTIAL COOPERATIVE.
   § 2. Section 6 of section 4 of  chapter  576  of  the  laws  of  1974,
 constituting  the  emergency  tenant protection act of nineteen seventy-
 four, is amended by adding a new subdivision h to read as follows:
   H. NOTWITHSTANDING ANY CONTRARY PROVISIONS OF THIS ACT, ON  AND  AFTER
 THE EFFECTIVE DATE OF THIS SUBDIVISION, WHERE COOPERATIVE OR CONDOMINIUM
 OWNERSHIP  OF  A  HOUSING ACCOMMODATION NO LONGER EXISTS (DECONVERSION),
 PURSUANT TO SUBDIVISION THREE OF SECTION 233-C OF THE REAL PROPERTY LAW,
 THE INITIAL RENT SHALL BE THE MOST RECENT LEGAL REGULATED RENT  FOR  THE
 HOUSING  ACCOMMODATION  ADJUSTED  BY ALL LAWFUL ANNUAL GUIDELINE AMOUNTS
 FOR ONE-YEAR LEASES ESTABLISHED BY THE RENT GUIDELINES BOARD THAT  WOULD
 HAVE  BEEN  PERMITTED  HAD  THE  HOUSING ACCOMMODATION BEEN CONTINUOUSLY
 SUBJECT TO THIS ACT, BUT IF  THE  DOCUMENTATION  NECESSARY  TO  RELIABLY
 IDENTIFY  THE  MOST RECENT LEGAL REGULATED RENT FOR THE HOUSING ACCOMMO-
 DATION IS NOT AVAILABLE OR IS INAPPROPRIATE, SUCH INITIAL  AMOUNT  SHALL
 BE  DETERMINED BY THE DIVISION OF HOUSING AND COMMUNITY RENEWAL BASED ON
 DATA, COMPILED BY AND USING SAMPLING METHODS DETERMINED BY THE  DIVISION
 OF HOUSING AND COMMUNITY RENEWAL, FOR REGULATED HOUSING ACCOMMODATIONS.
   § 3. Section 26-512 of the administrative code of the city of New York
 is amended by adding a new subdivision h to read as follows:
   H.  NOTWITHSTANDING  ANY CONTRARY PROVISIONS OF THIS LAW, ON AND AFTER
 THE EFFECTIVE DATE OF THIS SUBDIVISION, WHERE COOPERATIVE OR CONDOMINIUM
 OWNERSHIP OF A HOUSING ACCOMMODATION NO  LONGER  EXISTS  (DECONVERSION),
 S. 2433--A                          4
 
 PURSUANT TO SUBDIVISION THREE OF SECTION 233-C OF THE REAL PROPERTY LAW,
 THE  INITIAL  RENT SHALL BE THE MOST RECENT LEGAL REGULATED RENT FOR THE
 HOUSING ACCOMMODATION ADJUSTED BY ALL LAWFUL  ANNUAL  GUIDELINE  AMOUNTS
 FOR  ONE-YEAR LEASES ESTABLISHED BY THE RENT GUIDELINES BOARD THAT WOULD
 HAVE BEEN PERMITTED HAD  THE  HOUSING  ACCOMMODATION  BEEN  CONTINUOUSLY
 SUBJECT  TO  THIS  LAW,  BUT  IF THE DOCUMENTATION NECESSARY TO RELIABLY
 IDENTIFY THE MOST RECENT LEGAL REGULATED RENT FOR THE  HOUSING  ACCOMMO-
 DATION  IS  NOT AVAILABLE OR IS INAPPROPRIATE, SUCH INITIAL AMOUNT SHALL
 BE DETERMINED BY THE DIVISION OF HOUSING AND COMMUNITY RENEWAL BASED  ON
 DATA,  COMPILED BY AND USING SAMPLING METHODS DETERMINED BY THE DIVISION
 OF HOUSING AND COMMUNITY RENEWAL, FOR REGULATED HOUSING ACCOMMODATIONS.
   § 4. Severability clause.  If any clause, sentence, paragraph,  subdi-
 vision,  section  or  part of this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair,  or  invalidate  the remainder thereof, but shall be confined in
 its operation to the clause, sentence, paragraph,  subdivision,  section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the  legislature  that  this  act  would  have been enacted even if such
 invalid provisions had not been included herein.
   § 5. This act shall take effect immediately, and shall  apply  to  all
 existing  leases  and  all  leases issued, renewed, modified, altered or
 amended on or after such date; provided, however, that the amendments to
 section 26-512 of chapter 4 of title 26 of the  administrative  code  of
 the  city  of New York made by section three of this act shall expire on
 the same date as such law expires and shall not affect the expiration of
 such law as provided under section 26-520 of such law.

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Senate Bill S2433A

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Bill Amendments

co-Sponsors

2025-S2433 - Details

2025-S2433 - Summary

2025-S2433 - Sponsor Memo

2025-S2433 - Bill Text download pdf

co-Sponsors

2025-S2433A (ACTIVE) - Details

2025-S2433A (ACTIVE) - Summary

2025-S2433A (ACTIVE) - Sponsor Memo

2025-S2433A (ACTIVE) - Bill Text download pdf

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