Which of the following best describes a proprietary lease?

A proprietary lease is indeed best described as a lease that gives the tenant ownership interest. This type of lease is commonly associated with cooperative housing arrangements, where residents do not own their individual units outright but instead own shares in a corporation that holds title to the property. The proprietary lease grants them the right to occupy a specific unit in the building, providing a degree of ownership interest, even though they do not hold title to real estate in the traditional sense. Through this arrangement, the residents enjoy both the benefits of ownership, such as the ability to participate in governance decisions for the property, and the responsibilities that come with it, including maintenance fees and adhering to established rules.

In contrast, a lease that prohibits any alterations would focus on the restrictions placed on tenants, while a long-term lease for commercial properties generally pertains to business-related agreements rather than residential interests. A lease specifying the rent amount for one year only does not convey the unique ownership features inherent in a proprietary lease. Each of these alternatives lacks the core component of providing the tenant with any ownership interest, which is intrinsic to the definition of a proprietary lease.