 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          1163
 
                               2025-2026 Regular Sessions
 
                    IN SENATE
 
                                     January 8, 2025
                                       ___________
 
        Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
          printed to be committed to the Committee on Judiciary
 
        AN ACT to amend the real property law, in relation to  prohibiting  rent
          minimums in mortgages
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. The real property law is amended by adding  a  new  section
     2  284 to read as follows:
     3    § 284. Rent minimums prohibited. No mortgagor on a loan secured prima-
     4  rily  by  an interest in real property shall be charged a fee, forced to
     5  default, or otherwise penalized by the mortgagee because  the  mortgagor
     6  did  not  set  a  high enough rent on all or part of such real property.
     7  All terms of a mortgage which would cause a mortgagor  to  be  penalized
     8  for  not  setting  a high enough rent shall be void and unenforceable as
     9  against public policy.
    10    § 2. This act shall take effect immediately and  shall  apply  to  all
    11  mortgages  regardless  of  when  issued,  renewed,  modified, altered or
    12  amended.
 
 
 
 

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00490-01-5
Prohibits rent minimums in mortgages

What's Happening

Why It Matters
