Assemblymember Braunstein and Senator Stavisky Celebrate the Signing of Co-op Ground Lease Renewal Bill
Queens, NY – On Thursday, October 17, 2024, Assemblyman Edward Braunstein and Senator Toby Ann Stavisky held an event at the Beech Hills Apartments in Douglaston to celebrate the signing of the Ground Lease Renewal Bill (A.10467A/S.9721A). This legislation, sponsored by the Assemblymember and Senator, effectively saves the equity of thousands of cooperative homeowners throughout New York City. Currently, affected cooperative corporations cannot exercise the renewal clauses in their long-term ground leases until the expiration of the lease. This has led mortgage companies like Fannie Mae to stop issuing conventional 30-year mortgages. Now, because of this amendment, affected co-ops can renew or extend their ground leases at any time, giving mortgage companies more certainty to offer mortgages to potential buyers.
“In recent years, potential buyers for several Eastern Queens co-ops have been having trouble obtaining mortgages due to the timing issue created by these land lease renewal clauses,” said Assemblymember Edward Braunstein. “I am proud to have worked with Senator Stavisky and the Presidents Co-op & Condo Council to help rectify this problem and provide these homeowners the assurance that their co-op will remain marketable for the foreseeable future.”
“By amending the real property law to extend the renewal period for ground leases, we have preserved the equity of thousands of middle-class co-op homeowners, many of whom reside in Queens,” said Senator Toby Ann Stavisky. “This amendment does not alter any contract terms between landowners and cooperatives, but simply addresses a loophole in the timing of renewals and extensions so companies will once again issue traditional mortgages. I thank Assemblyman Braunstein for sponsoring this legislation in the Assembly, and I applaud Governor Hochul for signing it into law to help provide financial peace of mind for co-op residents.”
"The enactment of the Ground Release Renewal Bill represents a significant triumph for the thousands of New Yorkers residing in co-ops with ground leases. I extend my heartfelt appreciation to New York State Senator Toby Stavisky and New York State Assemblyman Ed Braunstein for spearheading this bipartisan legislation," said Congressman Tom Suozzi. "Today, over 2,600 co-op shareholders in my Congressional District, and hundreds more throughout the state, are now safeguarded from a seemingly minor yet very important technicality. This technicality would have otherwise hindered their ability to secure 30-year loans if they did not have at least 35 years remaining on their ground lease. Legislation like this may not be thrilling or glamorous, but it does have a real positive impact on co-op owners here in Queens and throughout New York."
“Co-ops are integral parts of our communities including in my congressional district,” said Congresswoman Grace Meng. “They serve as homes for many of my constituents, providing a more affordable option to help middle class Queens residents achieve the American Dream. We should always have their backs, and I’m proud to have worked on the ground lease issue in Congress as well as other crucial initiatives such as successfully allowing co-ops to receive COVID-19 relief funds and making it easier for veterans to purchase co-op units. I thank all who pushed to make the Ground Lease Renewal Notice bill the law of the land including Senator Stavisky, Assemblyman Braunstein and the Presidents Co-op and Condo Council. This will be an important lifeline for our local co-ops, and I look forward to keeping up the fight for them.”
“The law gives affected Co-ops the ability to exercise their ground lease renewal, thereby making their buyers eligible for Fannie Mae loans,” said Geoffrey Mazel, General Counsel of the Presidents Co-op & Condo Council. “The practical impact on working- and middle-class Co-op homeowners is profound, effectively preserving millions of dollars in equity in their Co-op apartments.”
“Although this was not a sexy bill, passage of it will have a real positive impact on co-op owners residing in co-ops with ground leases,” said Bob Friedrich, President Glen Oaks Village Co-op and Co-President of the Presidents Co-op & Condo Council. “The refusal of ground leaseholders to allow co-ops to execute their pre-existing contractual renewals was spiteful and economically harmful to co-ops by drying up long term mortgage money. This legislation corrects that flaw and sends a powerful message to the malevolent ‘fat cat’ ground leaseholders who by their very actions show little concern for affordable housing in New York.”
"The Presidents Co-op & Condo Council takes pride in having played a key role in helping thousands of our fellow shareholders sell their apartments and overturning the unreasonable decisions made by Fannie Mae underwriters," said Warren Schreiber, President of the Queens Civic Congress.
Assemblymember Braunstein and Senator Stavisky were joined at their press conference by Congressman Tom Suozzi, Congresswoman Grace Meng, Warren Schreiber and Bob Friedrich, Co-Presidents of the Presidents Co-op & Condo Council (PCCC), Janice Schreibersdorf, Beech Hills Co-op Board President and PCCC Secretary, Geoffrey Mazel, General Counsel of the PCCC, and local co-op shareholders. This legislation was officially signed into law by Governor Hochul on September 27, 2024.