assembly Bill A3275B

Signed By Governor
2019-2020 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

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Archive: Last Bill Status - Signed by Governor


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

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Actions

view actions (24)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Dec 23, 2020 approval memo.55
signed chap.351
Dec 11, 2020 delivered to governor
Jul 22, 2020 returned to assembly
passed senate
3rd reading cal.875
substituted for s1476b
Mar 11, 2020 referred to banks
delivered to senate
passed assembly
Jan 08, 2020 ordered to third reading cal.133
returned to assembly
died in senate
Jun 18, 2019 referred to rules
delivered to senate
passed assembly
Jun 13, 2019 ordered to third reading rules cal.252
rules report cal.252
reported
Jun 07, 2019 amend and recommit to rules 3275b
Jun 05, 2019 reported referred to rules
May 30, 2019 print number 3275a
May 30, 2019 amend and recommit to banks
Jan 29, 2019 referred to banks

Co-Sponsors

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Multi-Sponsors

A3275 - Details

See Senate Version of this Bill:
S1476
Law Section:
Financial Services
Versions Introduced in 2017-2018 Legislative Session:
A11083, S8675

A3275 - 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.

A3275 - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3275
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 29, 2019
                                ___________
 
 Introduced  by M. of A. EPSTEIN -- read once and referred to the Commit-
   tee on Banks
 
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

Co-Sponsors

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Multi-Sponsors

A3275A - Details

See Senate Version of this Bill:
S1476
Law Section:
Financial Services
Versions Introduced in 2017-2018 Legislative Session:
A11083, S8675

A3275A - 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.

A3275A - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3275--A
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 29, 2019
                                ___________
 
 Introduced by M. of A. EPSTEIN, SIMON, REYES, TAYLOR, GOTTFRIED, MOSLEY,
   D'URSO, CRUZ, BLAKE, M. G. MILLER, COOK -- Multi-Sponsored by -- M. of
   A.  NOLAN  --  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. 1. For the purposes of this act:
   (a)  "financial  institution"  shall include, but not be limited to, a
 commercial bank, trust company, savings institution,  credit  union,  or
 any other entity authorized to originate and service loans;
   (b)  "small  business" shall mean a business that meets the definition
 of a small business as defined  by  the  United  States  Small  Business
 Administration; and
   (c) "mezzanine debt" shall mean debt carried by a borrower that may be
 subordinate  to  the  primary  lien and/or common shares and reported as
 assets for the purposes of financing such primary lien.
   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  or
 refinancing  property that includes rent-regulated and/or small business
 tenants. Such study shall examine and report by type of lender, range of
 building sizes, and any other criteria that would show trends in  preda-
 tory equity and shall include, but not be limited to:
   (a) whether and how financial institutions are considering the follow-
 ing factors when reviewing a landlord's loan application:
   (i) debt service coverage ratio;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

Co-Sponsors

view additional co-sponsors

Multi-Sponsors

A3275B (ACTIVE) - Details

See Senate Version of this Bill:
S1476
Law Section:
Financial Services
Versions Introduced in 2017-2018 Legislative Session:
A11083, S8675

A3275B (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.

A3275B (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3275--B
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 29, 2019
                                ___________
 
 Introduced by M. of A. EPSTEIN, SIMON, REYES, TAYLOR, GOTTFRIED, MOSLEY,
   D'URSO,  CRUZ,  BLAKE, M. G. MILLER, COOK, ORTIZ -- Multi-Sponsored by
   -- M. of A. NOLAN -- read once and referred to the Committee on  Banks
   --  committee  discharged,  bill amended, ordered reprinted as amended
   and recommitted to said committee --  reported  and  referred  to  the
   Committee  on  Rules  --  Rules  Committee  discharged,  bill amended,
   ordered reprinted as amended and recommitted to the Committee on Rules
 
 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. 1. For the purposes of this act:
   (a) "financial institution" shall include, but not be  limited  to,  a
 commercial  bank,  trust  company, savings institution, credit union, or
 any other entity authorized to originate and service loans;
   (b) "small business" shall mean a business that meets  the  definition
 of  a  small  business  as  defined  by the United States Small Business
 Administration; and
   (c) "mezzanine debt" shall mean debt carried by a borrower that may be
 subordinate to the primary lien and/or common  shares  and  reported  as
 assets for the purposes of financing such primary lien.
   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 or
 refinancing property that includes rent-regulated and/or small  business
 tenants. Such study shall examine and report by type of lender, range of
 building  sizes,  and any other criteria, trends in predatory equity and
 shall include, but not be limited to:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02520-06-9