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NY State Legislature· A174-2025Vetoed

Prohibits rent minimums in mortgages, the official text

Shown verbatim: the complete text as captured from the official source posted by the New York State Senate, fetched 2026-08-11. Nothing is edited or removed. Where this bill amends existing law, language marked for deletion in the official source appears here in brackets. The official bill page.
S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    174
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by  M. of A. R. CARROLL, ANDERSON, JACKSON, MITAYNES -- read
   once and referred 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:
 
   Section 1. The real property law is amended by adding  a  new  section
 284 to read as follows:
   § 284. RENT MINIMUMS PROHIBITED. NO MORTGAGOR ON A LOAN SECURED PRIMA-
 RILY  BY  AN INTEREST IN REAL PROPERTY SHALL BE CHARGED A FEE, FORCED TO
 DEFAULT, OR OTHERWISE PENALIZED BY THE MORTGAGEE BECAUSE  THE  MORTGAGOR
 DID  NOT  SET  A  HIGH ENOUGH RENT ON ALL OR PART OF SUCH REAL PROPERTY.
 ALL TERMS OF A MORTGAGE WHICH WOULD CAUSE A MORTGAGOR  TO  BE  PENALIZED
 FOR  NOT  SETTING  A HIGH ENOUGH RENT SHALL BE VOID AND UNENFORCEABLE AS
 AGAINST PUBLIC POLICY.
   § 2. This act shall take effect immediately and  shall  apply  to  all
 mortgages  regardless  of  when  issued,  renewed,  modified, altered or
 amended.
 
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00490-01-5
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