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NY A03275
Bill
Status
12/23/2020
Primary Sponsor
Harvey Epstein
Click for details
AI Summary
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Directs the Department of Financial Services to study lending practices by financial institutions to landlords acquiring or refinancing properties with rent-regulated and/or small business tenants.
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Requires the study to examine how lenders consider factors including debt service coverage ratios, capitalization rates, rent projections, number of rent-regulated units, mezzanine debt, and landlord equity sources.
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Mandates analysis of whether lenders verify income sources, track vacant units by classification, monitor rent-regulated unit counts before and after loan disbursement, and evaluate landlord public records for liens and violations.
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Requires the Department of Financial Services to report findings to the legislature and governor within 18 months, including the scope and frequency of predatory equity practices and any recommended legislation.
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Takes effect immediately upon enactment.
Legislative Description
Directs the department of financial services to study, evaluate and make recommendations concerning lending practices by financial institutions to landlords acquiring property that includes small business and/or rent-regulated tenants; requires a report on the department's findings and recommendations for legislative action within eighteen months.
Last Action
approval memo.55
12/23/2020