On June 3, 2025, more than 25,000 cooperative apartment residents in New York City took to the streets, demanding legislative action to address expiring ground leases that threaten their housing stability. These leases, which date back to the 1950s and 1960s, are crucial to thousands of New Yorkers who live in co-op buildings, but many of the agreements lack necessary protections against eviction or dramatic rent hikes once they expire. As more of these leases approach expiration, residents have become increasingly concerned about their future housing security, prompting a push for reform.
State Senator Liz Krueger and Assemblywoman Linda Rosenthal have introduced a bill aimed at protecting co-op residents facing the expiration of their ground leases. The proposed legislation would grant tenants the right of first refusal, allowing them to purchase the land under their buildings if the lease expires without renewal. In addition to this, the bill seeks to implement rent-stabilization measures, providing further protections for tenants who might otherwise face rent hikes that could push them out of their homes.
The new bill has already made progress through various housing committees in the state legislature. Supporters of the bill argue that it is a critical step toward ensuring housing stability for long-term co-op residents who are at risk of being displaced as their ground leases expire. “We cannot allow long-term New Yorkers to lose their homes due to a lack of protections in these outdated leases,” said Senator Krueger in a statement. “This bill is designed to provide a fair and equitable solution to a growing problem that affects thousands of New Yorkers.”
The ground leases in question are often decades old and were signed when New York’s real estate market and housing laws were very different. In many cases, these agreements were structured in a way that provided minimal protections for tenants, with little to no recourse if landlords chose not to renew the lease or raised rents substantially. As these leases near their expiration dates, residents have expressed concern about the potential for significant rent increases or, in the worst case, eviction.
According to the bill’s sponsors, this is not just a matter of housing affordability, but also a critical issue of fairness. Many of the co-op buildings affected are in highly sought-after neighborhoods, where real estate prices have skyrocketed in recent years. Without protections, tenants could face displacement as developers or landowners seek to cash in on the increased value of the land.
However, the bill has faced opposition from certain real estate groups and critics who argue that it could undermine property rights and lead to unintended consequences. Opponents of the bill contend that the right of first refusal could infringe on the property rights of landowners, particularly in cases where ground leases were negotiated under the terms of private contracts. Some have also raised concerns that the bill could disproportionately benefit wealthier residents of co-op buildings, who would be in a better position to purchase the land and control the future of the property.
“While the intent of the bill is laudable, we must ensure that it does not unfairly interfere with private contracts or discourage investment in the housing sector,” said one industry expert who asked to remain anonymous. “Co-op residents who are financially capable should have the ability to purchase the land, but we must also consider the potential consequences for those who are not in that position.”
The debate over the bill comes at a time when New York City is grappling with a broader housing crisis, marked by rising rents, a shortage of affordable housing, and increasing pressure on the city’s real estate market. Advocates for tenant protections argue that the legislation is necessary to prevent further displacement of long-time residents in neighborhoods that are rapidly gentrifying.
Supporters of the bill also point to the historical context of the issue, noting that many of the co-op buildings affected by expiring leases were once part of New York City’s efforts to provide affordable housing options. In some cases, these buildings were converted into co-ops in the mid-20th century as a means of offering low-cost homeownership opportunities to residents. Now, with the land under these co-ops becoming more valuable, tenants are left vulnerable to losing their homes without proper protections in place.
“The city cannot afford to allow wealthy developers to push out longtime residents,” said Assemblywoman Linda Rosenthal. “This bill is about preserving the integrity of our neighborhoods and ensuring that people who have lived here for decades can continue to call these places home.”
While the bill is still in the early stages of the legislative process, the large turnout at the June rally and the growing momentum for reform suggest that it could be a pivotal moment for tenant rights in New York. As the bill progresses through the state legislature, it will likely continue to spark debates over the balance between protecting tenants and respecting property rights.
For now, co-op residents and advocates are closely watching the developments, hoping that the legislative changes will bring much-needed relief to those whose futures hang in the balance as their ground leases expire.