July 10, 2025
In a city known for complex property ownership structures, a new bill—S2433/A2619—has stirred serious debate among real estate professionals, attorneys, and lawmakers.
If passed, this bill could give co-op apartment owners in NYC more rights when their building sits on leased land. But while it’s being framed as a win for affordability, others are sounding the alarm that it could upend the foundation of real estate contract law—not just for co-ops, but across the board.
As a NYC realtor, here’s what you need to know—and what your clients might start asking about.
This legislation, sponsored by State Senator Liz Krueger and Assembly Member Linda Rosenthal, is targeted at co-op buildings operating under ground leases. In these arrangements, the co-op owners own their apartments, but not the land under the building. Instead, they pay monthly maintenance fees to a landowner who holds the lease.
The bill proposes two big changes:
That might sound fair on the surface. But critics argue that this is a direct interference with existing contracts—a move that could set a legal precedent affecting all real estate deals.
Anita Laremont, a seasoned NYC real estate attorney and member of the Real Estate Board of New York, warns the bill is “unconstitutional” because it alters preexisting agreements. In the world of real estate, contracts are everything.
If the government starts inserting new rights or obligations into contracts that were signed decades ago, what’s to stop them from doing it in other real estate scenarios—or in other industries?
In short, this isn’t just about co-ops. It’s about contract law at large.
Rosenthal argues the bill protects everyday New Yorkers from massive increases in maintenance fees and possible foreclosure. With over 10,000 ground lease co-ops in the city—4,000+ in Queens alone—she says this is about avoiding another housing crisis.
However, some industry insiders suggest that many of these buildings, such as Carnegie House near Billionaire’s Row, are owned by the wealthy. They say this bill is less about affordability and more about protecting investment properties held by millionaires and absentee landlords.
That contrast—between protecting working-class residents and helping investors preserve asset value—will likely continue to be a sticking point in this debate.
If this bill passes, it may trigger:
We’ve seen NYC shift policies in the name of fairness before, but this bill is unique in how deeply it reaches into the legal framework of property contracts. Whether you're representing a co-op, selling a condo, or working with investors, this legislation is one to watch.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
