Bill Text: NY A03391 | 2015-2016 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 3391 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 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. GROUND LEASES. 1. DEFINITIONS. FOR THE PURPOSES OF THIS 4 SECTION ONLY, A "GROUND LEASE" SHALL BE DEFINED AS A RENTAL AGREEMENT 5 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 UPON SUCH REAL PROPERTY. 14 2. REFINANCING. (A) IF ANY GROUND LEASE DOES NOT CONTAIN EXPRESS 15 PROVISIONS PROHIBITING A LESSEE FROM ENCUMBERING ITS INTEREST IN A 16 GROUND LEASE, A LESSEE MAY ENCUMBER UP TO AND INCLUDING ITS ENTIRE 17 INTEREST IN SUCH GROUND LEASE. IF SUCH GROUND LEASE CONTAINS PROVISIONS 18 RESTRICTING THE LESSEE'S ABILITY TO ENCUMBER ITS INTEREST, THE LESSEE 19 MUST OBTAIN THE LESSOR'S WRITTEN PERMISSION PRIOR TO SUCH ENCUMBRANCE. 20 (B) IF THE LESSEE IS REQUIRED TO OBTAIN THE LESSOR'S PERMISSION TO 21 ENCUMBER THE LESSEE'S INTEREST, THE LESSOR MAY ONLY REFUSE TO GRANT SUCH 22 PERMISSION FOR REASONABLE CAUSE AND MUST PROVIDE THE LESSEE WITH A WRIT- 23 TEN STATEMENT THAT SETS FORTH THE BASIS FOR THE REFUSAL WITHIN FIFTEEN 24 DAYS OF A WRITTEN REQUEST FOR PERMISSION FROM THE LESSEE. 25 (C) ANY GROUND LEASE PROVISION THAT LIMITS THE AMOUNT A LESSEE COULD 26 ENCUMBER ITS INTEREST, UP TO AND INCLUDING ITS ENTIRE INTEREST IN SUCH EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05230-01-5 A. 3391 2 1 GROUND LEASE, SHALL ALSO ADJUST SUCH AMOUNT ANNUALLY ON THE FIRST DAY OF 2 OCTOBER OF EACH YEAR BY THE CHANGE IN THE REGIONAL CONSUMER PRICE INDEX 3 FOR ALL URBAN CONSUMERS, NEW YORK-NORTHERN NEW JERSEY-LONG ISLAND, 4 NY-NJ-CT-PA, AS ESTABLISHED THE PRECEDING AUGUST. 5 IF A LESSEE HAS ENCUMBERED ITS INTEREST IN A GROUND LEASE, NO ADJUST- 6 MENT PURSUANT TO THIS PARAGRAPH THAT REDUCES THE AMOUNT SUCH LESSEE 7 COULD RECEIVE SHALL BE CONSIDERED A BREACH OF THE GROUND LEASE. ANY 8 AGREEMENT BY A LESSEE WAIVING OR MODIFYING THE PROVISIONS AS SET FORTH 9 IN THIS PARAGRAPH SHALL BE VOID AS CONTRARY TO PUBLIC POLICY. 10 S 2. This act shall take effect immediately.