'That’s not fair at all'
These New York residents, who’ve invested years of savings into their homes, are now at risk of losing both their equity and housing stability. Meanwhile, State Senator Liz Krueger is pushing for a bill that would cap rent hikes for ground lease co-op tenants to protect them from landlords taking advantage of expiring leases.
The Real Estate Board of New York (REBY) argues that Krueger’s potential bill could hurt property values and unfairly favor wealthier homeowners. A statement from REBY reads, in part, “...this bill was bad policy last session when it died, and it’s bad policy now.”
Some New York real estate lawyers, including Stuart Saft, call it unconstitutional, warning the bill could set a dangerous precedent for other contracts.
On the other hand, attorney Jeffrey Mazel — who represents co-op residents — told CBS News New York the bill is crucial, noting that many residents weren’t properly informed of the risks when they first purchased their homes. Many of these co-op tenants were shocked to learn of the potential threat to their housing situations.
"I’ve been to meetings. I’ve seen people cry," Mazel says.
For residents like Richard Wechsler of Mainstay Co-op, the situation feels deeply unfair. "Now I’ve got to pick up and find a new place? That’s ridiculous,” he said. “Why is that fair? That’s not fair at all."
As the debate over protections for ground lease co-ops continues, the future of thousands of New Yorkers hangs in the balance.
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Learn MoreHow to protect yourself against rent hikes
As the Mainstay Co-op situation demonstrates, it’s critical to do what you can to protect your housing budget and avoid unaffordable rent hikes.
One of the first steps is understanding rent regulations in your state. In New York, rent-controlled and rent-stabilized apartments protect against excessive rent hikes. Rent control mostly affects units where tenants — or the tenant’s lawful successor — have lived since 1971, while rent stabilization impacts most apartments built before 1974 with six or more units.
If you find yourself facing a rent increase, negotiation is key. Start by researching local rent prices to see if the increase is in line with the market. If you've been a reliable tenant and have a good relationship with your landlord, you can try to use this to negotiate. Use online resources such as Brick Underground, which offers tips and email templates to help tenants negotiate with landlords.
If you are a senior or a person with disabilities, New York City offers programs like the Senior Citizen Rent Increase Exemption and the Disability Rent Increase Exemption, which freeze rent increases if you’re eligible.
If you end up in a situation where you feel your tenant rights are being violated, be sure to seek legal assistance. Organizations such as the Legal Aid Society and Legal Services NYC offer free support to tenants. The New York State Division of Housing and Community Renewal also enforces housing laws and can help you understand your rights.
Finally, if you can’t afford to stay where you are, consider alternative housing options by researching more affordable neighborhoods or different types of housing.
To navigate the competitive housing market, you need to stay informed and make use of available resources.
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