R
esidents of Carnegie House, a co-op on 57th Street across from Billionaires' Row, face an uncertain future as their ground lease renewal threatens to send monthly costs skyrocketing. Despite units selling for as low as $100,000, the homeowners could be forced out if the building's annual rent is raised from $4 million to $25 million.

    Longtime residents Barbara and Lou Grumet, both 80, fear being priced out of their home after over a decade. They rely on nearby hospitals and enjoy Broadway shows, but the drastic increase would bankrupt the co-op and threaten financial stability for homeowners. "We're not billionaires, we're thousand-aires," said Richard Hirsch, president of the building's co-op board.

    The ground lease owners, billionaire investors Rubin Schron and David Werner, are willing to negotiate, but their offers feel like a slap in the face to residents. A 10% discount for tenants if the rent exceeds $25 million and a fund for lower-income residents are seen as inadequate given the proposed six-fold increase.

    Residents have filed a lawsuit and rallied support from politicians, including State Senator Liz Krueger, who calls the situation a "clear hole" in New York's housing protection laws. The battle highlights the growing problem for co-ops with ground leases across the city, with an estimated 65 to 100 buildings facing similar battles.

    A proposed bill aims to limit rent hikes for co-op owners in buildings with ground leases, but the Real Estate Board of New York and landowners oppose it, claiming it unfairly benefits wealthy homeowners. Proponents argue the bill is necessary to safeguard affordable housing, while critics suggest it should have been included in the state's recent housing package.

    "We're not talking about a 10% increase; we're talking about a six-fold increase that would likely displace the majority of us from our homes," Hirsch said. "The landowners continue to show us that they are not interested in finding a compromise that keeps residents in their homes."