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bill aimed at protecting co-op owners' rights is making its way through the state law-making process, but a NYC real estate lawyer says it could be "unconstitutional." The proposed legislation, sponsored by Sen. Liz Krueger and Assembly Member Linda Rosenthal, would give more rights to people who own co-operative apartments - but not the land underneath.

    Co-ops in NYC are designed so that renters pay monthly maintenance fees to landowners who provide a ground lease. However, Anita Laremont, a real estate lawyer, argues that the bill would insert new structures into the relationship between the ground lessor and the cooperative, which is unconstitutional. She says contracts should be solid and parties should know they can rely on them.

    The bill has already passed the state Senate, but risks outside of contract law are also at play. If the state legislature can get into ground leases and cooperative dynamics, it could impact other kinds of everyday contracts that New Yorkers use. Rosenthal argues that the legislation would prevent New Yorkers from paying exorbitant maintenance increases, but Laremont says it's a slippery slope.

    Co-ops have limited say in negotiations because existing laws don't provide the right to lease renewal or limits on rent increases when the lease is set to expire. The bill aims to change this by giving co-op owners new "unimagined benefits" in setting and renewing ground leases between building and property owners.

    Carnegie House, a swanky site near Billionaire's Row, is one such co-op where residents have gone to court to alter their ground lease but lost. Laremont says that the building is filled with units owned by people who don't live there and are just holding them as investment properties. She argues that lawmakers should focus on enacting meaningful policy changes to make housing more affordable for New Yorkers, rather than giving "giveaways to the rich."