Bill > S01163

This bill prohibits mortgage lenders from penalizing property owners for not charging a high enough rent on their properties. Specifically, the bill adds a new section to New York's real property law that prevents mortgagees (lenders) from charging fees, forcing defaults, or taking any other punitive actions against mortgagors (property owners) who do not set rent at a certain minimum level. Any mortgage terms that would penalize a property owner for not charging a high enough rent are deemed void and against public policy. The bill is retroactive, meaning it applies to all mortgages, regardless of when they were originally issued, renewed, modified, altered, or amended. This legislation aims to provide more flexibility for property owners in setting rental rates and protect them from potential financial consequences imposed by mortgage lenders based on rental income.

Justice

https://www.nysenate.gov/legislation/bills/2025/S1163