Bill Text: NY S05219 | 2017-2018 | General Assembly | Introduced

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Bill Title: Relates to ground leases.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-01-03 - REFERRED TO JUDICIARY [S05219 Detail]

Download: New_York-2017-S05219-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          5219
                               2017-2018 Regular Sessions
                    IN SENATE
                                     March 16, 2017
                                       ___________
        Introduced  by Sen. STAVISKY -- read twice and ordered printed, and when
          printed to be committed to the Committee on Judiciary
        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    § 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-
    25  ten statement that sets forth the basis for the refusal  within  fifteen
    26  days of a written request for permission from the lessee.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01747-01-7
        S. 5219                             2
     1    (c)  Any  residential  ground lease provision that limits the amount a
     2  lessee could encumber its interest,  up  to  and  including  its  entire
     3  interest in such residential ground lease, shall also adjust such amount
     4  annually  on  the first day of October of each year by the change in the
     5  regional consumer price index for all urban consumers, New York-Northern
     6  New  Jersey-Long  Island,  NY-NJ-CT-PA,  as  established  the  preceding
     7  August.
     8    If a lessee has encumbered its interest in a residential ground lease,
     9  no adjustment pursuant to this paragraph that reduces  the  amount  such
    10  lessee  could  receive  shall  be considered a breach of the residential
    11  ground lease.   Any agreement by  a  lessee  waiving  or  modifying  the
    12  provisions  as  set forth in this paragraph shall be void as contrary to
    13  public policy.
    14    § 2. This act shall take effect immediately.