April 07, 2025
As a licensed contractor and someone involved in NYC real estate, I’ve seen just about every kind of ownership structure — but few are as complex and risky as the ground lease co-op. And right now, thousands of New Yorkers are learning just how fragile their sense of “ownership” really is.
Take the Mainstay Co-op in Flushing. Residents there own shares in the co-op and maintain their building. But they don’t own the land beneath it — that belongs to a separate landowner under a ground lease. And now that some of these leases are approaching expiration, the very real threat of rent hikes, eviction, or even demolition is hanging over residents' heads.
This isn’t just a hypothetical issue. These are middle-class, working-class, and retired folks who’ve poured their savings into these homes, believing they were building equity and securing long-term housing. Now they face losing it all — not because of foreclosure or mismanagement, but because of a ticking legal clock buried in the land lease.
State Senator Liz Krueger is pushing for legislation that would cap rent increases tied to these ground leases, offering a lifeline to the 25,000+ affected New Yorkers. But not everyone’s on board. Critics argue it would damage property values and interfere with private contracts. Legal experts are divided — some say it’s necessary, others call it unconstitutional.
No matter where you stand on the policy debate, there’s one undeniable takeaway: if you’re buying into a co-op or condo, understand what you’re buying. Not every deed equals control. Ground leases can turn into financial landmines if you're not careful.
So how can you protect yourself?'
First, get familiar with the fine print. If you’re looking at any property — especially co-ops — make sure you know who owns the land, what the lease terms are, and when they expire. If that lease is set to expire in your lifetime, ask what protections (if any) are in place.
Second, know your rights as a tenant and homeowner. In New York, rent-stabilized and rent-controlled units offer more predictable rent increases — and programs like the Senior Citizen Rent Increase Exemption (SCRIE) or Disability Rent Increase Exemption (DRIE) can help eligible individuals cap their rent.
And if you’re already in a difficult situation, legal resources like the Legal Aid Society or Legal Services NYC can help you navigate the mess. These organizations often provide free support to tenants facing unfair treatment or displacement.
At the end of the day, real estate in NYC is anything but straightforward. Ground lease co-ops are just one more example of how ownership can mean very different things depending on the structure of the deal.
