L
awmakers are reviving their push to limit rent increases on ground lease co-ops, a measure that stalled last year. Senator Liz Krueger and Assembly member Linda Rosenthal have reintroduced bills aimed at restricting ground-lease rent hikes and granting co-op shareholders the right to renew leases.

    The Carnegie House co-op board has supported the legislation and sued to delay the reset of their ground lease, where owners initially sought a massive rent increase from $4 million to $40 million. The parties are in arbitration after a judge struck down the board's attempt to halt talks. Opponents argue that the measures unfairly interfere with private contracts and benefit wealthy co-op shareholders.

    Krueger said her bill will "address the legal gaps facing ground lease co-op residents and provide much-needed protections." The bills would cap annual rent increases at 3% or the Consumer Price Index, whichever is greater, and give shareholders the right to renew leases on the same terms for up to 30 years. They would also override provisions that prevent borrowing money over certain thresholds.

    The Real Estate Board of New York has criticized the proposals, saying they throw contract law into chaos and provide a windfall for wealthy co-op shareholders. The board's Zach Steinberg argued that policymakers should focus on pressing issues facing everyday New Yorkers rather than legislating benefits for the wealthy.