assembly Bill A11083A

2017-2018 Legislative Session

Directs the department of financial services to study and make recommendations concerning lending practices to landlords acquiring property that includes small business and/or rent-regulated tenants

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Assembly Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

Your Voice

do you support this bill?

Please enter your contact information

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

view actions (3)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 11, 2018 print number 11083a
Jun 11, 2018 amend (t) and recommit to banks
Jun 04, 2018 referred to banks

A11083 - Details

See Senate Version of this Bill:
S8675
Current Committee:
Assembly Banks
Law Section:
Financial Services
Versions Introduced in 2019-2020 Legislative Session:
A3275, S1476

A11083 - Summary

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.

A11083 - Bill Text download pdf


                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  11083

                          I N  A S S E M B L Y

                              June 4, 2018
                               ___________

Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Epstein) --
  read once and referred to the Committee on Banks

AN ACT directing the department of financial services to study, evaluate
  and make recommendations concerning  lending  practices  by  financial
  institutions  to landlords acquiring property that includes rent-regu-
  lated tenants

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Legislative findings and intent. The legislature finds and
declares that the practice known as "predatory equity" is furthering the
state's affordable housing crisis. Predatory equity is a model in  which
landlords purchase affordable housing units based on speculative income,
which  leads  them  to displace rent-regulated tenants and return apart-
ments to market rate in order to earn back what was owed.
  The legislature further finds that it is necessary to  scrutinize  the
role  of the lenders involved in predatory equity, in order to determine
appropriate accountability  for  the  financial  institutions  involved.
Affordable  housing  is  critically important to the wellbeing of middle
and low-income New Yorkers as well as the state as a whole. It is incum-
bent upon the state to take remedial action to resolve the affordability
crisis.
  § 2. 1. For the purposes of this act, "financial institutions" means a
bank, trust company, savings institution, credit  union,  or  any  other
entity authorized to originate and service loans.
  2.  The  department  of  financial  services  is hereby authorized and
directed to prepare or have prepared a study to review  the  process  in
which  financial institutions provide loans to landlords acquiring prop-
erty that includes rent-regulated tenants. Such study shall examine:
  (a) whether  financial  institutions  are  considering  the  following
factors when reviewing a landlord's loan application:
  (i) debt service coverage ratio;
  (ii) capitalization rate;
  (iii) gross rent multiplier;
  (iv) loan to value; and

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

A11083A (ACTIVE) - Details

See Senate Version of this Bill:
S8675
Current Committee:
Assembly Banks
Law Section:
Financial Services
Versions Introduced in 2019-2020 Legislative Session:
A3275, S1476

A11083A (ACTIVE) - Summary

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.

A11083A (ACTIVE) - Bill Text download pdf


                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                11083--A

                          I N  A S S E M B L Y

                              June 4, 2018
                               ___________

Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Epstein) --
  read once  and  referred  to  the  Committee  on  Banks  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to direct the department of financial services to study, evaluate
  and  make  recommendations  concerning  lending practices by financial
  institutions to landlords acquiring property that includes small busi-
  ness tenants and/or rent-regulated tenants

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Legislative findings and intent. The legislature finds and
declares that the practice known as "predatory equity" is furthering the
state's affordable housing crisis. Predatory equity is a model  that  is
known  to  be  exceptionally destructive of existing affordable housing,
and is commonly understood to be defined by one or both of  the  follow-
ing:  (a)  a speculative sale in which the landlord purchases naturally-
occurring affordable rental housing with the explicit or implicit under-
standing that low- and moderate-rent paying tenants will  be  encouraged
or  actively  pushed to move out of the building at a rate that does not
reflect normal tenant turnover, with the goal of the  landlord  to  take
advantage  of  the vacancies in order to use loopholes in the rent regu-
lation laws to dramatically increase the building's  rent  roll;  and/or
(b)  a  financing source used by a landlord to fund the acquisition debt
or the acquisition equity in which the financing source expects  a  rate
of  return  that  is significantly in excess of the profit that would be
generated by a building operating within the rent law's historic  norms,
and  in  which case the landlord is encouraged to resort to tactics that
aggressively undermine the building's affordability in order to meet the
demands of the financing source.
  Increasingly,  speculative  behavior  is  also  being  linked  to  the
displacement  of  commercial  tenants,  mostly small businesses, who are
being pushed out of mixed-use residential buildings and others in stand-
alone commercial buildings.  The legislature further finds  that  it  is
necessary  to  scrutinize  the role of the lenders involved in predatory

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets