Bill > A00088

This bill amends the New York General Obligations Law to prohibit prepayment penalties for mortgages on cooperative housing properties where more than half of the units are occupied by shareholders. Specifically, the bill adds language to an existing law that prevents lenders from charging fees or penalties when borrowers choose to pay off their mortgage early, with a new specific provision targeting cooperative housing. Under this proposed change, if a cooperative property has over 50% of its units owned and occupied by shareholders, any prepayment penalty included in the loan contract would be unenforceable. This means that borrowers in such cooperative properties can prepay their mortgage without incurring additional costs, regardless of whether the loan contract originally included a prepayment penalty clause. The bill aims to provide more financial flexibility for homeowners in cooperative housing by removing potential financial barriers to early loan repayment. The legislation would take effect immediately upon passage.

Justice

https://www.nysenate.gov/legislation/bills/2025/A88