NY A11083

Department of Financial Services must conduct a study examining lending practices by financial institutions to landlords acquiring or refinancing properties with rent-regulated and/or small business tenants, with findings disaggregated by lender type and building size.

Study shall examine whether lenders consider factors such as debt service coverage ratio, capitalization rate, loan-to-value, tenant turnover projections, preferential rent termination plans, and landlord history of harassment or violations.

Study must evaluate whether lenders appropriately consider only current rents and realistic maintenance costs when determining net operating income, and whether they monitor rent-regulated unit counts before and after loan disbursement.

Department may charge financial institutions collectively up to $350,000 for the study costs and must submit findings and legislative recommendations to the legislature and governor no later than eighteen months after the act's effective date.

Superintendent of Financial Services is authorized to contract with an outside firm or entity to conduct the study.