Suffolk County’s Co-op Conversion Crisis: How Building Sales Are Forcing Out Long-Term Residents in 2025

A growing crisis is unfolding across Suffolk County as co-op conversions and building sales create a perfect storm of displacement for long-term residents. Suffolk County’s sharp deceleration and Nassau County’s more muted 5% Y-o-Y decline brought the two Long Island markets to similar levels of foreclosure activity — 135 first-time filings in Nassau County and 151 in Suffolk County. This surge in foreclosure activity is directly connected to the complex dynamics of cooperative housing conversions that are leaving residents vulnerable to displacement.

The Co-op Conversion Foreclosure Connection

The relationship between co-op conversions and foreclosures in Suffolk County is multifaceted. Apartments in ground-lease buildings are generally priced 20-30% below market value, leading some to believe that they are buying an affordable home. However, residents in buildings with ground leases pay higher than average monthly maintenance fees, and often face steep rent hikes once the ground lease expires. This creates a scenario where residents who thought they were securing affordable housing find themselves trapped in financially unsustainable situations.

Ground lease co-ops represent a particularly vulnerable segment of Suffolk County’s housing market. Our building, like others across New York, is a ground lease co-op, which means while we own our apartment, we lease the land beneath us from landowners. As we inched closer to our retirement, it became clear that our new landowners were eyeing the upcoming lease renewal in March 2025 as a golden opportunity to price us out and dissolve the co-op.

The Displacement Crisis

The human cost of these conversions is devastating. While our board has worked to negotiate in good faith for a more reasonable rent increase—one that will keep us from losing our homes come next March—the only counter offer from our landowners to date remains extreme: an immediate sixfold rent hike. Our building would need to win the lottery multiple times over to afford a rent hike like this, making it clear that they have no qualms about potentially displacing hundreds of families.

The financial trap extends beyond just rent increases. Local banks have stopped lending money to interested buyers, advising them in great detail about the land lease renewal and the diminishing returns of purchasing an apartment here. This creates a vicious cycle where residents cannot sell their units to escape mounting costs, effectively becoming prisoners in their own homes.

Market Dynamics Fueling the Crisis

Suffolk County’s real estate market conditions are contributing to the problem. Our extensive database in Suffolk County includes 3,585 preforeclosures, foreclosure auction properties, bankruptcies, REOs (real estate owned by lenders), and properties from HUD, VA, Fannie Mae, and other government agencies in Suffolk County. This high volume of distressed properties indicates systemic issues affecting homeowners across the county.

The conversion from cooperative to rental properties has become increasingly attractive to developers and investors. As city property values have skyrocketed in recent decades, those rental contracts have risen accordingly, threatening many co-ops with the prospect that the co-op will be forced to dissolve itself — a process known as “de-conversion” — and revert to a rental property.

Legal Protections and Legislative Response

Recognizing the severity of the crisis, New York State has begun taking action. The New Yorkers living in ground-lease co-ops represent the diversity of our city and state; many are longtime residents, middle-income families and retirees who first built their lives in these homes decades ago. Legislative efforts are underway to provide greater protections for these vulnerable residents.

However, the legal landscape remains complex, and residents facing these challenges need immediate professional assistance. When dealing with foreclosure proceedings or potential displacement due to co-op conversions, having experienced legal representation is crucial for protecting your rights and exploring all available options.

Getting Help: The Importance of Legal Representation

If you’re facing foreclosure or displacement due to co-op conversion issues in Suffolk County, seeking qualified legal assistance is essential. A skilled Foreclosure Attorney Suffolk County can help you navigate the complex legal processes involved in these cases, review your mortgage documents for potential violations, and negotiate with lenders on your behalf.

The Frank Law Firm P.C. has been serving Suffolk County residents facing foreclosure challenges with personalized legal representation. The firm has a team of experienced attorneys dedicated to helping clients protect their rights and interests. Their approach includes reviewing mortgage documents for irregularities, defending against foreclosure proceedings, and exploring alternatives such as loan modifications.

What Residents Can Do

For Suffolk County residents facing potential displacement due to co-op conversions or foreclosure, several steps can help protect your interests:

• Document all communications with building management, landowners, or lenders
• Review your cooperative agreement and ground lease terms carefully
• Seek legal counsel early in the process, before deadlines pass
• Explore all available alternatives, including loan modifications or payment plans
• Stay informed about legislative developments that may provide additional protections

The co-op conversion foreclosure crisis in Suffolk County represents a significant threat to housing stability for long-term residents. Queens claims more than one in 10 first-time filings as metro’s most active foreclosure market, followed by Suffolk and Nassau counties with one in five cases. As this crisis continues to unfold, residents must be proactive in protecting their rights and seeking qualified legal assistance when facing these complex housing challenges.

Time is often of the essence in foreclosure and displacement cases. If you’re experiencing difficulties related to co-op conversions, building sales, or foreclosure proceedings in Suffolk County, don’t wait to seek help. The sooner you act, the more options you may have to protect your home and your financial future.