NY S02433

Requires ground lease residential cooperatives to initiate dissolution within 10 days of lease expiration, with residents automatically becoming tenants entitled to rent-stabilized or good cause eviction-protected rental leases

Allows cooperatives to encumber (mortgage) their interest in the ground lease unless expressly prohibited, and requires ground lease owners to respond to encumbrance requests within 15 days with reasonable cause for any denial

Grants cooperatives a right of first refusal when ground lease owners sell the property, with 60 days to express intent to purchase and 120 days total to submit an offer matching the price and terms

Sets initial rent for deconverted units at the most recent legal regulated rent adjusted by annual guideline increases, or as determined by the Division of Housing and Community Renewal if documentation is unavailable

Takes effect immediately and applies to all existing and future leases, with a severability clause preserving remaining provisions if any part is invalidated