New York S 4579: Prohibits bank investments in bad faith landlords

Bill Text

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S04579 Summary:

BILL NOS04579A

&nbsp

SAME ASNo Same As

&nbsp

SPONSORHOYLMAN-SIGAL

&nbsp

COSPNSRBRISPORT, JACKSON

&nbsp

MLTSPNSR

&nbsp

Add §13, Bank L

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Prohibits a state chartered banking institution from providing financing to a landlord who has engaged in certain bad faith acts.

Go to top S04579 Actions:

BILL NOS04579A

&nbsp

02/07/2025REFERRED TO BANKS

05/19/2025AMEND AND RECOMMIT TO BANKS

05/19/2025PRINT NUMBER 4579A

Go to topS04579 Committee&nbspVotes:

Go to topS04579 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS04579 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 4579--A

 2025-2026 Regular Sessions

 IN SENATE

 February 7, 2025
 ___________

 Introduced by Sens. HOYLMAN-SIGAL, JACKSON -- read twice and ordered
 printed, and when printed to be committed to the Committee on Banks --
 committee discharged, bill amended, ordered reprinted as amended and
 recommitted to said committee

 AN ACT to amend the banking law, in relation to prohibiting bank invest-
 ments in bad faith landlords

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. The banking law is amended by adding a new section 13 to
 2 read as follows:
 3 § 13. Investments in bad faith landlords by state chartered banking
 4 institutions. 1. No state chartered banking institution or entity
 5 licensed pursuant to this chapter shall knowingly provide financing for
 6 or invest in the stocks, securities, or other obligations of any limit-
 7 ed-liability company, partnership, corporation or any other entity that
 8 acquires, owns, sells, or manages real property, which itself, or a
 9 member, officer, partner, shareholder, or director of which:
 10 (a) in the past year has granted a tenant an abatement of rent based
 11 on violations of the housing maintenance code, applicable housing stand-
 12 ards, building code, health code or section two hundred thirty-five-b of
 13 the real property law;
 14 (b) in the past year has violated sections 2525.4 or 2505.4 of title 9
 15 of the New York codes, rules and regulations or sections 7-105 or 7-108
 16 of the general obligations law;
 17 (c) in the past five years has engaged in repeated fraudulent or ille-
 18 gal acts under subdivision twelve of section sixty-three of the execu-
 19 tive law;
 20 (d) in the past five years has engaged in deceptive acts or practices
 21 under section three hundred forty-nine of the general business law;

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD04008-02-5

 S. 4579--A 2

 1 (e) in the past five years has violated sections 2525.5, 2505.6,
 2 2205.1, or 2505.1 of title 9 of the New York codes, rules and regu-
 3 lations;
 4 (f) owns a property with more than one open hazardous or immediately
 5 hazardous violation per dwelling unit within the past five years, as
 6 determined by the local housing standards department;
 7 (g) owns a property subject to the alternative enforcement program
 8 under section 27-2153 of the administrative code of the city of New
 9 York;
 10 (h) in the past five years has engaged in harassment as defined in
 11 section 27-2004 of the administrative code of the city of New York; or
 12 (i) in the past five years has engaged in retaliation under section
 13 two hundred twenty-three-b of the real property law;
 14 (j) in the past five years has violated section two hundred twenty-
 15 seven-f of the real property law; or
 16 (k) in the past five years has violated paragraph a of subdivision
 17 five of section two hundred ninety-six of the executive law.
 18 2. Subdivision one of this section shall not apply when any financing,
 19 loan, or investment will be used solely to cure an immediately hazardous
 20 violation of the uniform fire prevention and building code, New York
 21 city fire code, or New York city building and housing maintenance codes,
 22 if applicable, or to prevent a forseeable and imminent immediately
 23 hazardous violation of said codes.
 24 3. (a) A state-chartered banking institution or other entity licensed
 25 pursuant to this chapter shall require an applicant for financing