NY State Senate Bill 2025-S2433

Senate Bill S2433

2025-2026 Legislative Session

Limits the amount of rent increases for residential ground lease cooperative apartment buildings and establishes certain rights upon the expiration of such leases

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Current Bill Status - In Senate Committee Judiciary Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 17, 2025	referred to judiciary

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2025-S2433 (ACTIVE) - Details

Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Amd §233-c, RP L
Versions Introduced in 2023-2024 Legislative Session:: S7825

2025-S2433 (ACTIVE) - Summary

Limits the amount of rent increases for residential ground lease cooperative apartment buildings; establishes certain rights upon the expiration of such leases.

2025-S2433 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2433

SPONSOR: KRUEGER
 
TITLE OF BILL:

An act to amend the real property law, in relation to limiting the
amount of rent increases for residential ground lease cooperative apart-
ment buildings and establishing certain rights upon expiration of such
leases

 
PURPOSE:

This bill would limit rent increases for residential ground lease coop-
erative apartment buildings and establish certain rights upon the expi-
ration of such leases.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one amends § 223-c to the real property law to provide basic
protections to residential ground lease cooperative buildings located on
privately owned land. The bill build on existing law to provide residen-
tial ground cooperative buildings the right to renew their leases when

they expire, as well as the right of first refusal if the landowner
chooses to sell or transfer the land underlying a building. It limits
annual increases in the base rent payable by ground lease residential
cooperatives on or after the thirtieth anniversary of their initial
ground lease to 3% or the Consumer Price Index, whichever is greater.
The legislation also grants residential cooperatives the ability to
borrow money when necessary to pay for repairs and capital improvements,
notwithstanding prohibitions or limits in a around lease, unless the
subject ground lease owner denies consent for a reasonable cause within
15 days of receiving a written request. The provisions of this bill do
not apply to ground lease residential buildings located on land owned by
the federal, state, or city government or authority, any Indian nation
or tribe, or any registered charity which purchased land prior to Janu-
ary 1, 2024.

Section two contains a severability clause.

Section three establishes the effective date.

 
JUSTIFICATION:

There are dozens of residential cooperative buildings throughout New
York City containing thousands of homes that do not own the land under-
neath. Instead, private property owners lease the land to ground lease
cooperatives for set periods of time, and the buildings' residents make
rent payments to the landowner through their monthly maintenance fees.

When each building's lease is net to expire, an appraiser is tasked with
evaluating the land's fair market value, which is then used to negotiate
a rent increase between the landowner and the cooperative.  Residential
cooperatives have extremely limited power in these negotiations since
the buildings cannot be physically moved, and existing laws do not
provide the right to lease renewal, limits on rent increases, or any
other protections. In this way, shareholders in ground lease cooper-
atives are in a similar position to manufactured home residents who own
their units but not the land on which they are located and cannot move
the structures.
In recent years, a growing number of owners of the land under ground
lease cooperatives have been demanding rent increases that are so exces-
sive that they put the financial viability of the residential cooper-
atives at risk. There are currently ground lease residential cooper-
atives that are facing rent increases as high as 1,000% from one year to
the next. While ground rent increases of this magnitude would be
extraordinarily difficult for any group of cooperative shareholders to
absorb, they threaten the very viability of the many residential cooper-
ative buildings which are occupied primarily by middle-income residents
on fixed incomes who have lived in their homes for decades. A number of
cooperative buildings with ground leases coming up for renewal in the
coming years face default due to the rent increases being demanded; this
would leave the longtime shareholders without their homes or any equity
while still owning mortgages on units that no longer exist. In certain
cases, the land under ground lease cooperatives has even been explicitly
marketed to prospective investors as an opportunity to obtain a prime
development site for a new luxury building once the existing residential
cooperative is unable to pay the rent demanded up on lease renewal, goes
into default, and is eventually demolished.

Many owners of the land under ground lease cooperatives have also
refused to allow buildings to borrow money required to perform critical
repairs and/or capital improvements. Numerous ground leases contain
language explicitly prohibiting cooperatives from taking on debt over
certain levels regardless of the circumstances. In some cases, property
owners have even prohibited ground lease cooperatives from borrowing
funds to perform repairs ordered by New York City agencies. Given the
high cost of maintaining aging buildings, along with the ongoing need to
make capital improvements to comply with changing laws, improve energy
efficiency and resiliency, and respond to emergencies, it is essential
for ground lease cooperatives to have the ability to borrow funds when
necessary.

As the housing crisis worsens, it is crucial that New York provide basic
protections to ground lease cooperative residents facing displacement
from their homes due to exorbitant rent increases and extremely limited
negotiating power in abnormal market conditions.  This legislation
simply builds upon established state laws granting manufactured home
residents basic rights during the lease renewal process, and if the land
under their homes is sold, by extending comparable protections to ground
lease residential cooperatives that similarly cannot move their build-
ings from the land underneath.

 
FISCAL IMPLICATIONS:

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to all existing
leases and to any renewals, amendments and other extensions of such
leases.

2025-S2433 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2433
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 17, 2025
                                ___________
 
 Introduced by Sens. KRUEGER, CLEARE, GONZALEZ, GOUNARDES, HOYLMAN-SIGAL,
   JACKSON,  LIU, MAYER, MYRIE, PARKER, RAMOS, RIVERA, SCARCELLA-SPANTON,
   SEPULVEDA, STAVISKY -- read twice and ordered printed, and when print-
   ed to be committed to the Committee on Judiciary
 
 AN ACT to amend the real property  law,  in  relation  to  limiting  the
   amount  of  rent  increases  for  residential ground lease cooperative
   apartment buildings and establishing certain rights upon expiration of
   such leases
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 233-c of the real property law, as added by chapter
 371 of the laws of 2024, is amended to read as follows:
   §  233-c. Residential ground lease cooperative apartment buildings. 1.
 Wherever used in this section:
   (a) The term "residential ground lease cooperative apartment building"
 means any and all buildings, improvements or other structures located in
 the state of New York occupied, owned or leased in whole or in part by a
 ground lease residential cooperative, or  any  subsidiary  or  affiliate
 thereof, pursuant to a subject residential cooperative ground lease.
   (b) The term "ground lease residential cooperative" means any New York
 corporation  organized or operating as a housing development fund corpo-
 ration, New York cooperative corporation or cooperative  housing  corpo-
 ration,  including any entity meeting the definition thereof for federal
 income tax purposes, or any person or entity that is a tenant in common,
 co-tenant or joint owner with any such corporation, or which is, direct-
 ly or indirectly through a subsidiary or affiliate thereof, a party to a
 subject residential cooperative ground lease.
   (c) The term "subject residential cooperative ground lease" means  the
 lease  agreement,  together  with any amendments or other related agree-
 ments including any forbearance, settlement, tenancy in common or  other
 similar  agreements  related  thereto,  pursuant to which a ground lease
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04667-03-5

 S. 2433                             2
 
 residential cooperative leases, occupies or otherwise uses for  residen-
 tial,  commercial,  or  other  ancillary  purposes the ground lease real
 property from one or more subject ground lease owners.
   (d)  The  term  "ground  lease real property" means all real property,
 including improvements thereon, all or any portion of which  is  leased,
 rented,  licensed  or otherwise provided for use to a ground lease resi-
 dential cooperative pursuant to a subject residential cooperative ground
 lease, including any portion thereof that may be subleased or  otherwise
 used for ancillary retail, parking, or commercial purposes.
   (e)  The  term "subject ground lease owners" means any and all persons
 or entities, whether natural  persons,  estates,  trusts,  corporations,
 partnerships  or  other  entities,  other than any excepted ground lease
 owner, that holds title to or is the owner, whether by the entirety,  as
 tenants  in  common  or  otherwise,  of ground lease real property or is
 otherwise the landlord under any subject residential cooperative  ground
 lease.
   (f) The term "excepted ground lease owner" means (i) the United States
 federal government, the state of New York, the city of New York, and any
 agency,  municipality  or  political subdivision of any of the foregoing
 thereof, any entity owned or controlled by any of the foregoing, includ-
 ing but not limited to, the Battery Park city authority,  the  Roosevelt
 Island  Operating  Corporation, the Queens West Development Corporation,
 the Brooklyn Bridge Park Development  Corporation,  the  New  York  City
 Educational  Construction Fund, and the New York City Housing Authority,
 (ii) any charity approved under section 501(c) of the  internal  revenue
 code  which  acquired  its interest as the owner or landlord of a ground
 lease real property prior to January first,  two  thousand  twenty-four,
 and  (iii)  any Indian nation, tribe or band as such lands are described
 under and protected by the Indian law or title twenty-five of the United
 States Code, but shall exclude any private foundation within the meaning
 of section five hundred nine of the internal revenue code.
   (G) THE TERM "BASE RENT" MEANS FOR ANY YEAR  THE  PAYMENTS,  INCLUDING
 ANY  CONSUMER  PRICE  INDEX  OR OTHER SIMILAR ADJUSTMENT PAYMENTS, OTHER
 THAN ADDITIONAL RENT, REQUIRED TO BE MADE TO THE  SUBJECT  GROUND  LEASE
 OWNERS  FOR  SUCH  YEAR  PURSUANT  TO  A SUBJECT RESIDENTIAL COOPERATIVE
 GROUND LEASE.
   (H) THE TERM "ADDITIONAL RENT" MEANS, FOR ANY YEAR, THE AMOUNTS  SPENT
 OR  BORNE  BY  THE GROUND LEASE RESIDENTIAL COOPERATIVE DURING SUCH YEAR
 PURSUANT TO, OR IN ORDER TO COMPLY WITH, THE SUBJECT RESIDENTIAL COOPER-
 ATIVE GROUND LEASE FOR THE PAYMENT  OF  REAL  ESTATE  TAXES,  INSURANCE,
 REPAIR,  MAINTENANCE,  INCLUDING, WITHOUT LIMITATION, MAINTENANCE AS MAY
 BE REQUIRED PURSUANT TO ANY FACADE INSPECTION SAFETY PROGRAM IMPLEMENTED
 BY ANY CITY, MUNICIPALITY OR OTHER GOVERNMENT ENTITY WITHIN THE STATE OF
 NEW YORK, AND/OR OTHER CAPITAL IMPROVEMENTS FOR OR WITH RESPECT  TO  THE
 RESIDENTIAL GROUND LEASE COOPERATIVE APARTMENT BUILDING.
   (I)  THE TERM "MAXIMUM ANNUAL RENT INCREASE PERCENTAGE" MEANS, FOR ANY
 YEAR, THE GREATER OF: (I) THREE PERCENT (3%); AND  (II)  THE  PERCENTAGE
 CHANGE  IN  THE CONSUMER PRICE INDEX (FOR ALL URBAN CONSUMERS, U.S. CITY
 AVERAGE, ALL ITEMS, NOT SEASONALLY ADJUSTED), AS PUBLISHED BY THE UNITED
 STATES DEPARTMENT OF LABOR FOR SUCH YEAR.
   (J) "COMMISSIONER" MEANS THE COMMISSIONER OF THE DIVISION  OF  HOUSING
 AND COMMUNITY RENEWAL.
   2.  Notwithstanding  any  term  of  a  subject residential cooperative
 ground lease to the  contrary,  if  a  subject  residential  cooperative
 ground  lease  authorizes  the  ground  lease residential cooperative to
 renew or extend its lease at the sole option of the ground  lease  resi-
 S. 2433                             3
 
 dential  cooperative,  then the ground lease residential cooperative may
 exercise such right to renew or extend at any time prior to the  expira-
 tion  of  the subject residential cooperative ground lease in accordance
 with all other terms thereof.
   3.  ANNUAL INCREASES IN BASE RENT PAYABLE BY ANY GROUND LEASE RESIDEN-
 TIAL COOPERATIVE FROM AND AFTER THE THIRTIETH ANNIVERSARY OF THE INITIAL
 DATE OF THE SUBJECT RESIDENTIAL GROUND LEASE SHALL IN  NO  EVENT  EXCEED
 THE  MAXIMUM ANNUAL RENT INCREASE PERCENTAGE OF THE BASE RENT PAYABLE BY
 THE GROUND LEASE RESIDENTIAL COOPERATIVE IN THE PRIOR YEAR. IN THE EVENT
 THE SUBJECT RESIDENTIAL COOPERATIVE GROUND LEASE PROVIDES FOR  INCREASES
 IN  BASE  RENT  ON  A  PERIODIC BASIS LESS FREQUENTLY THAN ANNUALLY, THE
 INCREASE IN BASE RENT FOR ANY PERIOD MAY NOT  REPRESENT  MORE  THAN  THE
 COMPOUND  INCREASE  THAT  RESULTS  FROM APPLYING THE MAXIMUM ANNUAL RENT
 INCREASE PERCENTAGE FOR EACH APPLICABLE YEAR  ABOVE  THE  BASE  RENT  IN
 EFFECT  AS  OF  THE  LAST PRIOR INCREASE IN BASE RENT. THE PROVISIONS OF
 THIS SUBDIVISION SHALL APPLY AS A LIMIT ON ANNUAL INCREASES IN BASE RENT
 REGARDLESS OF THE METHODOLOGY FOR  DETERMINING  THE  BASE  RENT  OR  ANY
 INCREASES  THEREIN  AS  SET FORTH IN THE SUBJECT RESIDENTIAL COOPERATIVE
 GROUND LEASE INSTRUMENT.
   4. (A) SUBJECT TO PARAGRAPH (B) OF THIS SUBDIVISION, AFTER THE  EFFEC-
 TIVE  DATE  OF  THE CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-FIVE THAT
 AMENDED THIS SECTION, TO THE EXTENT THAT A SUBJECT  RESIDENTIAL  COOPER-
 ATIVE GROUND LEASE DOES NOT OTHERWISE CONTAIN A RIGHT OR OPTION TO RENEW
 THAT CONTINUES TO BE EXERCISABLE BY THE RESIDENTIAL GROUND LEASE COOPER-
 ATIVE,  ANY RESIDENTIAL GROUND LEASE COOPERATIVE SHALL HAVE THE RIGHT TO
 RENEW ITS SUBJECT RESIDENTIAL COOPERATIVE GROUND LEASE ON THE SAME TERMS
 AND CONDITIONS, SUBJECT TO  THIS  SECTION,  AS  IN  EFFECT  AT  TIME  OF
 RENEWAL,  WITH  SUCH RENEWAL EXERCISABLE AT ANY TIME PRIOR TO THE END OF
 THE TERM OR WITHIN NINETY DAYS AFTER HAVING RECEIVED WRITTEN NOTICE FROM
 THE SUBJECT GROUND LEASE OWNERS OF THE EXPIRATION OR TERMINATION OF  THE
 SUBJECT  RESIDENTIAL COOPERATIVE GROUND LEASE. ANY RENEWAL TERM PURSUANT
 TO THE FOREGOING SHALL, SUBJECT TO PARAGRAPH (B) OF THIS SUBDIVISION, BE
 EQUAL TO THE LESSER OF THE TERM OF SUCH SUBJECT RESIDENTIAL  COOPERATIVE
 GROUND  LEASE  PRIOR  TO SUCH EXPIRATION OR TERMINATION OR THIRTY YEARS,
 AND SHALL OCCUR AUTOMATICALLY AND SUCCESSIVELY, UNLESS THE SUBJECT RESI-
 DENTIAL COOPERATIVE GROUND LEASE AFFIRMATIVELY ELECTS TO  NOT  SO  RENEW
 AND  HAS  PROVIDED  WRITTEN  NOTICE  OF  SUCH NON-RENEWAL TO THE SUBJECT
 GROUND LEASE OWNERS.
   (B) NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, IN THE CASE  OF
 ANY  RENEWAL THAT IS NOT ALREADY PROVIDED FOR IN THE SUBJECT RESIDENTIAL
 COOPERATIVE GROUND LEASE, A SUBJECT GROUND LEASE OWNER MAY ELECT NOT  TO
 RENEW  A  SUBJECT RESIDENTIAL COOPERATIVE GROUND LEASE, AND IN ANY EVENT
 MAY BRING AND MAINTAIN ANY ACTION FOR EVICTION, IN  EACH  CASE  FOR  THE
 REASONS  SET  FORTH IN SECTION SEVEN HUNDRED ELEVEN OF THE REAL PROPERTY
 ACTIONS AND PROCEEDINGS LAW.
   5. AFTER THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND
 TWENTY-FIVE THAT AMENDED THIS SECTION, TO THE EXTENT A SUBJECT  RESIDEN-
 TIAL GROUND LEASE CONTAINS ANY PROHIBITION, SPECIFIED DOLLAR LIMITATIONS
 OR  OTHER REQUIREMENTS FOR OR CONDITIONED ON OBTAINING THE PRIOR WRITTEN
 CONSENT OF THE SUBJECT GROUND LEASE OWNER WITH RESPECT TO THE INCURRENCE
 OF INDEBTEDNESS OR BORROWING OF MONEY  BY  A  RESIDENTIAL  GROUND  LEASE
 COOPERATIVE  AND/OR  THE ENCUMBRANCE OF ITS INTEREST IN THE GROUND LEASE
 APARTMENT BUILDING IN CONNECTION  THEREWITH,  IN  EACH  CASE  WHERE  THE
 PRIMARY PURPOSE OF SUCH INDEBTEDNESS AND/OR BORROWED MONEY IS TO PROVIDE
 PROCEEDS  OR OTHER CREDIT SUPPORT TO PAY OR FUND REPAIRS, MAINTENANCE OR
 OTHER CAPITAL IMPROVEMENTS ON OR WITH RESPECT TO THE GROUND  LEASE  REAL
 S. 2433                             4
 
 PROPERTY  AND/OR THE GROUND LEASE APARTMENT BUILDING, THE SUBJECT GROUND
 LEASE OWNER MAY ONLY REFUSE TO GRANT SUCH CONSENT FOR  REASONABLE  CAUSE
 AND MUST PROVIDE THE RESIDENTIAL GROUND LEASE COOPERATIVE WITH A WRITTEN
 STATEMENT  THAT SETS FORTH THE BASIS OF REFUSAL WITHIN FIFTEEN DAYS OF A
 WRITTEN REQUEST FOR PERMISSION FROM THE RESIDENTIAL GROUND LEASE COOPER-
 ATIVE. THE FOREGOING SHALL NOT APPLY TO ANY MORTGAGE OR  GRANTING  OF  A
 SECURITY  INTEREST  IN  THE  GROUND  LEASE REAL PROPERTY, OTHER THAN THE
 RESIDENTIAL GROUND LEASE COOPERATIVE APARTMENT BUILDING ITSELF  SO  LONG
 AS  IT  IS  SUBORDINATE  TO THE RIGHTS OF THE SUBJECT GROUND LEASE OWNER
 UNDER THE SUBJECT RESIDENTIAL COOPERATIVE GROUND LEASE.
   6. (A) IF, AFTER THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF  TWO
 THOUSAND TWENTY-FIVE THAT AMENDED THIS SECTION, ANY SUBJECT GROUND LEASE
 OWNER  PROPOSES  TO  DIRECTLY  OR  INDIRECTLY SELL, ASSIGN, EXCHANGE, OR
 OTHERWISE TRANSFER ANY DIRECT OR INDIRECT INTEREST IN ANY  GROUND  LEASE
 REAL PROPERTY, INCLUDING, WITHOUT LIMITATION, ANY INDIRECT HYPOTHECATION
 BY  WAY OF TRANSFERS OF INTERESTS IN ANY ENTITY THAT IS ITSELF A SUBJECT
 GROUND LEASE  LANDLORD OR AN OWNER THEREOF AND/OR THE  SUBJECT  RESIDEN-
 TIAL COOPERATIVE  GROUND  LEASE ITSELF, THE SUBJECT GROUND  LEASE  OWNER
 SHALL  PROVIDE  THE  RESIDENTIAL  GROUND  LEASE COOPERATIVE WITH WRITTEN
 NOTICE THEREOF CONTAINING THE PRICE AND ALL OTHER TERMS  AND  CONDITIONS
 OF  SUCH  DIRECT OR INDIRECT PROPOSED SALE, ASSIGNMENT, EXCHANGE, TRANS-
 FER, OR OTHER SIMILAR CONVEYANCE. THE RESIDENTIAL GROUND  LEASE  COOPER-
 ATIVE  SHALL  HAVE  THE  RIGHT  TO  PURCHASE  THE  INTEREST  BEING SOLD,
 ASSIGNED, EXCHANGED, TRANSFERRED, OR CONVEYED AT THE SAME PRICE  AND  ON
 SUBSTANTIALLY  SIMILAR  TERMS AND CONDITIONS BY PROVIDING WRITTEN NOTICE
 TO THE SUBJECT GROUND LEASE OWNER WITHIN  ONE  HUNDRED  TWENTY  DAYS  OF
 RECEIPT  OF  THE  AFOREMENTIONED  WRITTEN NOTICE FROM THE SUBJECT GROUND
 LEASE OWNER. THE CLOSING OF THE PURCHASE BY THE RESIDENTIAL GROUND LEASE
 COOPERATIVE SHALL OCCUR WITHIN THE TIME FRAME AND PURSUANT TO PROCEDURES
 ADOPTED BY THE COMMISSIONER PURSUANT TO PARAGRAPH (D) OF  THIS  SUBDIVI-
 SION.
   (B)  IF  AN  OFFER TO PURCHASE BY THE RESIDENTIAL GROUND LEASE COOPER-
 ATIVE IS NOT DELIVERED WITHIN SUCH ONE HUNDRED TWENTY DAY PERIOD,  THEN,
 UNLESS  THE  SUBJECT GROUND LEASE OWNER THEREAFTER ELECTS TO DIRECTLY OR
 INDIRECTLY SELL, ASSIGN, EXCHANGE, OR OTHERWISE TRANSFER ANY  DIRECT  OR
 INDIRECT  INTEREST  IN  ANY  GROUND LEASE REAL PROPERTY AT A PRICE LOWER
 THAN THE PRICE SPECIFIED IN THE NOTICE TO THE RESIDENTIAL  GROUND  LEASE
 COOPERATIVE  OR  ON TERMS DIFFERENT FROM THOSE PRESENTED TO THE RESIDEN-
 TIAL GROUND LEASE COOPERATIVE, THE SUBJECT GROUND  LEASE  OWNER  HAS  NO
 FURTHER  OBLIGATIONS UNDER THIS SECTION, UNLESS THE SUBJECT GROUND LEASE
 OWNER DOES NOT DIRECTLY OR INDIRECTLY SELL, ASSIGN, EXCHANGE, OR  OTHER-
 WISE  TRANSFER  ANY DIRECT OR INDIRECT INTEREST IN ANY GROUND LEASE REAL
 PROPERTY IN ACCORDANCE WITH THE FOREGOING WITHIN ONE HUNDRED TWENTY DAYS
 AFTER THE EXPIRATION OF THE ONE HUNDRED  TWENTY  DAY  PERIOD  COMMENCING
 WITH DELIVERY OF THE WRITTEN NOTICE OF THE PROPOSED SALE TO THE RESIDEN-
 TIAL  GROUND  LEASE  COOPERATIVE,  IN WHICH CASE THE PROVISIONS OF PARA-
 GRAPHS (A) AND (C) OF THIS SUBDIVISION SHALL CONTINUE TO APPLY.
   (C) IF THE SUBJECT GROUND LEASE OWNER, AFTER SUCH ONE  HUNDRED  TWENTY
 DAY  PERIOD, ELECTS TO DIRECTLY OR INDIRECTLY SELL, ASSIGN, EXCHANGE, OR
 OTHERWISE TRANSFER ANY DIRECT OR INDIRECT INTEREST IN ANY  GROUND  LEASE
 REAL PROPERTY AT A PRICE LOWER THAN THE PRICE SPECIFIED IN THE NOTICE TO
 THE  RESIDENTIAL  GROUND  LEASE  COOPERATIVE  OR ON TERMS DIFFERENT FROM
 THOSE PRESENTED TO THE RESIDENTIAL GROUND LEASE  COOPERATIVE,  THEN  THE
 RESIDENTIAL GROUND LEASE COOPERATIVE SHALL BE ENTITLED TO NOTICE THEREOF
 AND  SHALL  HAVE  AN ADDITIONAL ONE HUNDRED TWENTY DAYS AFTER RECEIPT OF
 NOTICE OF THE REVISED TERMS TO DELIVER TO THE SUBJECT GROUND LEASE OWNER
 S. 2433                             5
 
 A WRITTEN NOTICE INDICATING EXERCISE OF SUCH  RESIDENTIAL  GROUND  LEASE
 COOPERATIVE'S  RIGHT  TO  PURCHASE WHICH MEETS THE REVISED PRICE, TERMS,
 AND CONDITIONS AS PRESENTED BY THE SUBJECT  GROUND  LEASE  OWNER.    THE
 CLOSING  OF  THE  PURCHASE  BY SUCH RESIDENTIAL GROUND LEASE COOPERATIVE
 SHALL OCCUR WITHIN THE TIME FRAME AND PURSUANT TO PROCEDURES ADOPTED  BY
 THE COMMISSIONER PURSUANT TO PARAGRAPH (D) OF THIS SUBDIVISION.
   (D)  THE  COMMISSIONER  SHALL  ADOPT THE PROCEDURES IN CONNECTION WITH
 THIS SUBDIVISION NO LATER THAN ONE YEAR AFTER THE EFFECTIVE DATE OF  THE
 CHAPTER  OF  THE  LAWS  OF  TWO  THOUSAND  TWENTY-FIVE THAT AMENDED THIS
 SECTION TO GIVE EFFECT TO CLOSING TERMS AND CONDITIONS  ASSOCIATED  WITH
 ANY PURCHASE AND SALE CONTEMPLATED BY THIS SUBDIVISION.
   (E)  THIS  SECTION  DOES  NOT  APPLY TO PURCHASES OF GROUND LEASE REAL
 PROPERTY BY A GOVERNMENTAL ENTITY UNDER ITS POWERS OF EMINENT DOMAIN.
   § 2. If any clause, sentence, paragraph, subdivision, section or  part
 of  this act shall be adjudged by any court of competent jurisdiction to
 be invalid, such judgment shall not affect, impair,  or  invalidate  the
 remainder thereof, but shall be confined in its operation to the clause,
 sentence,  paragraph,  subdivision,  section  or  part  thereof directly
 involved in the controversy in  which  such  judgment  shall  have  been
 rendered. It is hereby declared to be the intent of the legislature that
 this act would have been enacted even if such invalid provisions had not
 been included herein.
   §  3.  This  act  shall take effect immediately and shall apply to all
 existing leases as of such effective date and to  any  renewals,  amend-
 ments and other extensions of such leases.

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