New York State Assembly

 
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A10467 Summary:

A10467 Actions:

A10467 Committee Votes:

Committee:WAYS AND MEANS   Chair:Weinstein      
DATE:06/06/2024AYE/NAY:35/0  Action: Favorable refer to committee Rules        
Weinstein
Aye
Ra
Aye
Glick
Aye
Fitzpatrick
Aye
Pretlow
Aye
Hawley
Aye
Colton
Aye
Blankenbush
Aye
Cook
Aye
Norris
Aye
Aubry
Aye
Brabenec
Aye
Benedetto
Aye
Palmesano
Aye
Weprin
Aye
Walsh
Aye
Ramos
Aye
DeStefano
Aye
Braunstein
Aye
Manktelow
Aye
McDonald
Aye
Smullen
Aye
Rozic
Aye
Dinowitz
Aye
Magnarelli
Aye
Zebrowski
Aye
Bronson
Aye
Dilan
Aye
Seawright
Aye
Hyndman
Aye
Walker
Aye
Bichotte Hermel
Aye
Simon
Aye
Cruz
Aye
Fahy
Aye

Committee:RULES   Chair:Pretlow      
DATE:06/06/2024AYE/NAY:29/0  Action: Favorable         
Heastie
Excused
Barclay
Aye
Weinstein
Aye
Hawley
Aye
Pretlow
Aye
Giglio
Aye
Cook
Aye
Blankenbush
Aye
Glick
Aye
Norris
Aye
Aubry
Aye
Ra
Aye
Dinowitz
Aye
Brabenec
Aye
Colton
Aye
Palmesano
Aye
Magnarelli
Aye
Reilly
Aye
Paulin
Aye
Peoples-Stokes
Aye
Benedetto
Excused
Lavine
Aye
Lupardo
Aye
Zebrowski
Aye
Thiele
Aye
Braunstein
Aye
Dickens
Aye
Davila
Aye
Hyndman
Aye
Rozic
Aye
Bronson
Aye

A10467 Floor Votes:

A10467 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
 submitted in accordance with Assembly Rule III, Sec 1(f)



 
BILL NUMBER: A10467A
 
SPONSOR: Rules (Braunstein)

 
TITLE OF BILL:
 
An act to amend the real property law, in relation to ground lease
contracts
 
 
PURPOSE:
 
This bill will give ground lease residential cooperatives more initi-
ative in the renewal and/or extension of leases.
 
 
SUMMARY OF SPECIFIC PROVISIONS:
 
Section 1 of the bill amends the real property law by adding section
233-c, which includes defined terms and a renewal/extension provision.
Part (a) - defines the term "residential ground lease cooperative apart-
ment building."

Part (b) - defines the term "ground lease residential cooperative."
 
Part (c) -.defines the term "subject residential cooperative ground
lease."
 
Section 2 of the bill provides the effective date.
 
 
JUSTIFICATION:
 
This bill further defines terminology surrounding residential cooper-
ative ground lease renewals and/or extensions, and allows for the coop-
eratives to initiate such renewals and/or extensions prior to the expi-
ration of the lease.
 
Currently, prospective cooperative homeowners are having difficulty
obtaining mortgages for units in a cooperative that has a ground lease
renewal date coming up within the next 30 years. Allowing ground lease
residential cooperatives to exercise the renewal before the execution
date will make it easier for buyers to obtain mortgages.
 
 
PRIOR LEGISLATIVE HISTORY:
 
New bill.
 
 
FISCAL IMPLICATIONS:
 
None.
 
 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law, and shall apply to all contracts issued, renewed, modi-
fied, altered or amended on or after such date.

A10467 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                        10467--A
 
                   IN ASSEMBLY
 
                                      May 29, 2024
                                       ___________
 
        Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Braunstein,
          L. Rosenthal) -- read once and referred to the Committee on Housing --
          committee discharged, bill amended, ordered reprinted as  amended  and
          recommitted to said committee
 
        AN  ACT  to  amend  the  real  property law, in relation to ground lease
          contracts

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  The  real property law is amended by adding a new section
     2  233-c to read as follows:
     3    § 233-c. Residential ground lease cooperative apartment buildings.  1.
     4  Wherever used in this section:
     5    (a) The term "residential ground lease cooperative apartment building"
     6  means any and all buildings, improvements or other structures located in
     7  the state of New York occupied, owned or leased in whole or in part by a
     8  ground lease residential cooperative, or  any  subsidiary  or  affiliate
     9  thereof, pursuant to a subject residential cooperative ground lease.
    10    (b) The term "ground lease residential cooperative" means any New York
    11  corporation  organized or operating as a housing development fund corpo-
    12  ration, New York cooperative corporation or cooperative  housing  corpo-
    13  ration,  including any entity meeting the definition thereof for federal
    14  income tax purposes, or any person or entity that is a tenant in common,
    15  co-tenant or joint owner with any such corporation, or which is, direct-
    16  ly or indirectly through a subsidiary or affiliate thereof, a party to a
    17  subject residential cooperative ground lease.
    18    (c) The term "subject residential cooperative ground lease" means  the
    19  lease  agreement,  together  with any amendments or other related agree-
    20  ments including any forbearance, settlement, tenancy in common or  other
    21  similar  agreements  related  thereto,  pursuant to which a ground lease
    22  residential cooperative leases, occupies or otherwise uses for  residen-
    23  tial,  commercial,  or  other  ancillary  purposes the ground lease real
    24  property from one or more subject ground lease owners.
    25    (d) The term "ground lease real property"  means  all  real  property,
    26  including  improvements  thereon, all or any portion of which is leased,
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15727-05-4
        A. 10467--A                         2
 
     1  rented, licensed or otherwise provided for use to a ground  lease  resi-
     2  dential cooperative pursuant to a subject residential cooperative ground
     3  lease,  including any portion thereof that may be subleased or otherwise
     4  used for ancillary retail, parking, or commercial purposes.
     5    (e)  The  term "subject ground lease owners" means any and all persons
     6  or entities, whether natural  persons,  estates,  trusts,  corporations,
     7  partnerships  or  other  entities,  other than any excepted ground lease
     8  owner, that holds title to or is the owner, whether by the entirety,  as
     9  tenants  in  common  or  otherwise,  of ground lease real property or is
    10  otherwise the landlord under any subject residential cooperative  ground
    11  lease.
    12    (f) The term "excepted ground lease owner" means (i) the United States
    13  federal government, the state of New York, the city of New York, and any
    14  agency,  municipality  or  political subdivision of any of the foregoing
    15  thereof, any entity owned or controlled by any of the foregoing, includ-
    16  ing but not limited to, the Battery Park city authority,  the  Roosevelt
    17  Island  Operating  Corporation, the Queens West Development Corporation,
    18  the Brooklyn Bridge Park Development  Corporation,  the  New  York  City
    19  Educational  Construction Fund, and the New York City Housing Authority,
    20  (ii) any charity approved under section 501(c) of the  internal  revenue
    21  code  which  acquired  its interest as the owner or landlord of a ground
    22  lease real property prior to January first,  two  thousand  twenty-four,
    23  and  (iii)  any Indian nation, tribe or band as such lands are described
    24  under and protected by the Indian law or title twenty-five of the United
    25  States Code, but shall exclude any private foundation within the meaning
    26  of section five hundred nine of the internal revenue code.
    27    2. Notwithstanding any  term  of  a  subject  residential  cooperative
    28  ground  lease  to  the  contrary,  if  a subject residential cooperative
    29  ground lease authorizes the  ground  lease  residential  cooperative  to
    30  renew  or  extend its lease at the sole option of the ground lease resi-
    31  dential cooperative, then the ground lease residential  cooperative  may
    32  exercise  such right to renew or extend at any time prior to the expira-
    33  tion of the subject residential cooperative ground lease  in  accordance
    34  with all other terms thereof.
    35    §  2.  This  act shall take effect on the ninetieth day after it shall
    36  have become a law, and shall apply to  all  contracts  issued,  renewed,
    37  modified, altered or amended on or after such date.

A10467 LFIN:

 
NO LFIN

A10467 Chamber Video/Transcript: