Bill > A00174

This bill prohibits mortgage lenders from penalizing property owners for not setting rents at a specific minimum level. Specifically, the legislation makes it unlawful for a mortgagee (lender) to charge fees, force a default, or impose any other penalties on a mortgagor (property owner) if they do not charge what the lender considers a sufficiently high rent on their property. Any mortgage terms that would allow such penalties are declared void and against public policy. The bill is notably broad in its application, stating that these protections apply to all mortgages, regardless of when they were originally issued, renewed, modified, or amended. This means the law would retroactively apply to existing mortgages, providing immediate protection for property owners from potential rent minimum requirements that could have been previously embedded in their loan agreements.

Housing and Urban Affairs, Justice

https://www.nysenate.gov/legislation/bills/2025/A174