Bill Text: NY A03391 | 2015-2016 | General Assembly | Amended
Bill Title: Relates to ground leases.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Engrossed - Dead) 2016-03-01 - REFERRED TO JUDICIARY [A03391 Detail]
Download: New_York-2015-A03391-Amended.html
S T A T E O F N E W Y O R K
________________________________________________________________________
3391--A
Cal. No. 139
2015-2016 Regular Sessions
I N A S S E M B L Y
January 22, 2015
___________
Introduced by M. of A. BRAUNSTEIN -- read once and referred to the
Committee on Housing -- reported and referred to the Committee on
Codes -- advanced to a third reading, amended and ordered reprinted,
retaining its place on the order of third reading
AN ACT to amend the real property law, in relation to ground leases
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. The real property law is amended by adding a new section
2 220-a to read as follows:
3 S 220-A. RESIDENTIAL GROUND LEASES. 1. DEFINITIONS. FOR THE PURPOSES
4 OF THIS SECTION ONLY, A "RESIDENTIAL GROUND LEASE" SHALL BE DEFINED AS A
5 RENTAL AGREEMENT THAT:
6 (A) HAS A TERM OF AT LEAST TEN YEARS;
7 (B) IS FOR THE USE OF REAL PROPERTY, WHICH MAY OR MAY NOT INCLUDE ANY
8 IMPROVEMENTS OR STRUCTURES, BUT SHALL NOT APPLY TO REAL PROPERTY OWNED
9 AS THE COMMON PROPERTY OF ANY INDIAN NATION, TRIBE, OR BAND AS SUCH
10 LANDS ARE DESCRIBED UNDER AND PROTECTED BY INDIAN LAW AND/OR TITLE 25 OF
11 THE UNITED STATES CODE; AND
12 (C) ALLOWS A TENANT TO CONSTRUCT OR SUBSTANTIALLY IMPROVE, RENOVATE,
13 OR REHABILITATE STRUCTURES OR IMPROVEMENTS THAT INCLUDE ONE OR MORE
14 RESIDENTIAL DWELLINGS UPON SUCH REAL PROPERTY.
15 2. REFINANCING. (A) IF ANY RESIDENTIAL GROUND LEASE DOES NOT CONTAIN
16 EXPRESS PROVISIONS PROHIBITING A LESSEE FROM ENCUMBERING ITS INTEREST IN
17 A RESIDENTIAL GROUND LEASE, A LESSEE MAY ENCUMBER UP TO AND INCLUDING
18 ITS ENTIRE INTEREST IN SUCH RESIDENTIAL GROUND LEASE. IF SUCH RESIDEN-
19 TIAL GROUND LEASE CONTAINS PROVISIONS RESTRICTING THE LESSEE'S ABILITY
20 TO ENCUMBER ITS INTEREST, THE LESSEE MUST OBTAIN THE LESSOR'S WRITTEN
21 PERMISSION PRIOR TO SUCH ENCUMBRANCE.
22 (B) IF THE LESSEE IS REQUIRED TO OBTAIN THE LESSOR'S PERMISSION TO
23 ENCUMBER THE LESSEE'S INTEREST, THE LESSOR MAY ONLY REFUSE TO GRANT SUCH
24 PERMISSION FOR REASONABLE CAUSE AND MUST PROVIDE THE LESSEE WITH A WRIT-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05230-02-5
A. 3391--A 2
1 TEN STATEMENT THAT SETS FORTH THE BASIS FOR THE REFUSAL WITHIN FIFTEEN
2 DAYS OF A WRITTEN REQUEST FOR PERMISSION FROM THE LESSEE.
3 (C) ANY RESIDENTIAL GROUND LEASE PROVISION THAT LIMITS THE AMOUNT A
4 LESSEE COULD ENCUMBER ITS INTEREST, UP TO AND INCLUDING ITS ENTIRE
5 INTEREST IN SUCH RESIDENTIAL GROUND LEASE, SHALL ALSO ADJUST SUCH AMOUNT
6 ANNUALLY ON THE FIRST DAY OF OCTOBER OF EACH YEAR BY THE CHANGE IN THE
7 REGIONAL CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS, NEW YORK-NORTHERN
8 NEW JERSEY-LONG ISLAND, NY-NJ-CT-PA, AS ESTABLISHED THE PRECEDING
9 AUGUST.
10 IF A LESSEE HAS ENCUMBERED ITS INTEREST IN A RESIDENTIAL GROUND LEASE,
11 NO ADJUSTMENT PURSUANT TO THIS PARAGRAPH THAT REDUCES THE AMOUNT SUCH
12 LESSEE COULD RECEIVE SHALL BE CONSIDERED A BREACH OF THE RESIDENTIAL
13 GROUND LEASE. ANY AGREEMENT BY A LESSEE WAIVING OR MODIFYING THE
14 PROVISIONS AS SET FORTH IN THIS PARAGRAPH SHALL BE VOID AS CONTRARY TO
15 PUBLIC POLICY.
16 S 2. This act shall take effect immediately.
