Ground Lease Coop Protection Bill

It's interesting we seem to have a Gov/Mayor least tied to real estate industry of any in recent memory.

They seem to be in the pocket of Big Casino instead?

Is this bill supposed to apply retroactively to existing ground leases, or only to future ones?

It is still in the committee. So half baked as best. https://www.nysenate.gov/legislation/bills/2023/A5031

Probably flawed as well. #3 might be considered a taking (forced lease renewal), thus not permissible, #4 may be impossible (what bank will lend to the co-op using the land as collateral), #5 fair market value may still leave the co-op without the property, if a higher bidder appears.

My question: Does Tony Desimone (and how many of his contributors) live in a ground lease building?

Aaron, I think the bill needs a lot more work before it gets a date in the chamber. At this point of time, it is just someone's fantasy to please the constituents.

I don't even think it's a bill worth wasting any more work on.

I think following the money on this one leads to some aggrieved shareholder (or speculator who bought a bunch of units) who wants to regulate her way to profitability. I'd rather see a bill that bans creation of new land-lease coops so that this pointless investment form goes away.

As a Georgist, I have a secret crush on land-leases. If they were more widespread, they'd solve the biggest pragmatic flaw (price discovery) with LVT, while becoming the face of a conveniently unpopular political opponent (3rd party land owners).

I agree the provenance and substance of this bill are smelly.