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.
