senate Bill S1476B

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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Sponsored By

Archive: Last Bill Status Via A3275 - 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 (16)
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
Jul 22, 2020 substituted by a3275b
ordered to third reading cal.875
Jul 21, 2020 reported and committed to rules
Jan 08, 2020 referred to banks
Jun 07, 2019 print number 1476b
Jun 07, 2019 amend and recommit to banks
May 31, 2019 print number 1476a
May 31, 2019 amend and recommit to banks
Jan 15, 2019 referred to banks

Votes

view votes

Jul 22, 2020 - Rules committee Vote

S1476B
17
2
committee
17
Aye
2
Nay
0
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Rules committee vote details

Jul 21, 2020 - Banks committee Vote

S1476B
9
1
committee
9
Aye
1
Nay
1
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Banks committee vote details

Banks Committee Vote: Jul 21, 2020

nay (1)
aye wr (1)

Co-Sponsors

S1476 - Details

See Assembly Version of this Bill:
A3275
Law Section:
Financial Services
Versions Introduced in 2017-2018 Legislative Session:
S8675, A11083

S1476 - 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.

S1476 - Sponsor Memo

S1476 - Bill Text download pdf


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

                                  1476

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                            January 15, 2019
                               ___________

Introduced  by  Sens.  HOYLMAN, BAILEY, KRUEGER, SEPULVEDA -- read twice
  and ordered printed, and when printed to be committed to the Committee
  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-

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

Co-Sponsors

S1476A - Details

See Assembly Version of this Bill:
A3275
Law Section:
Financial Services
Versions Introduced in 2017-2018 Legislative Session:
S8675, A11083

S1476A - 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.

S1476A - Sponsor Memo

S1476A - Bill Text download pdf


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

                                 1476--A

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                            January 15, 2019
                               ___________

Introduced  by  Sens.  HOYLMAN, BAILEY, KRUEGER, SEPULVEDA -- 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 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;
  (ii) capitalization rate;

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

Co-Sponsors

S1476B (ACTIVE) - Details

See Assembly Version of this Bill:
A3275
Law Section:
Financial Services
Versions Introduced in 2017-2018 Legislative Session:
S8675, A11083

S1476B (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.

S1476B (ACTIVE) - Sponsor Memo

S1476B (ACTIVE) - Bill Text download pdf


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

                                 1476--B

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                            January 15, 2019
                               ___________

Introduced  by  Sens.  HOYLMAN, BAILEY, KRUEGER, SEPULVEDA -- 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 -- 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, trends in predatory  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:

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

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