Bill > S01323

This bill amends the New York General Obligations Law to prohibit prepayment penalties for mortgages on cooperative housing properties where over 50% of the units are occupied by shareholders. In cooperative housing, residents own shares in a corporation that owns the entire property, rather than individual units, which makes this type of property ownership unique. Currently, the law allows prepayment penalties under certain circumstances, but this bill specifically targets cooperative housing by making any prepayment penalty unenforceable when the majority of units are shareholder-occupied. The amendment means that homeowners in these cooperative properties can pay off their mortgages early without being charged additional fees, which could provide financial flexibility and potentially save money for residents. The bill takes effect immediately upon becoming law, ensuring quick implementation of the new protections for cooperative housing shareholders.

Justice

https://www.nysenate.gov/legislation/bills/2025/S1323