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S04579 Summary:

BILL NOS04579A
 
SAME ASNo Same As
 
SPONSORHOYLMAN-SIGAL
 
COSPNSRJACKSON
 
MLTSPNSR
 
Add §13, Bank L
 
Prohibits a state chartered banking institution from providing financing to a landlord who has engaged in certain bad faith acts.
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S04579 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  to
    26  self-certify that they are not covered by acts listed in subdivision one
    27  of  this  section  or, if they are covered by acts listed in subdivision
    28  one of this section, that the applicant will use  the  financing  solely
    29  for the purposes defined in subdivision two of this section.
    30    (b)  If an applicant wishes to qualify for an exemption under subdivi-
    31  sion two of this section, an applicant must:
    32    (i) Furnish records or reports to the creditor testifying to the imme-
    33  diately hazardous condition to be cured or prevented; and
    34    (ii) Furnish plans or statements to the  creditor  testifying  to  the
    35  scope and cost of work to be performed.
    36    4.  An  applicant  who  makes a false certification or furnishes false
    37  records, reports, plans, statements, or any other documents or  evidence
    38  to  receive  financing  under  this  section shall be subject to a civil
    39  penalty not less than ten thousand dollars nor more than fifty  thousand
    40  dollars.
    41    5. The superintendent shall promulgate regulations necessary to effec-
    42  tuate the provisions of this section, including:
    43    (a)  regulations specifying the evidence applicants must furnish under
    44  paragraph (b) of subdivision three of this section  prior  to  and  upon
    45  completion  of  work  undertaken to correct or to prevent an immediately
    46  hazardous condition;
    47    (b) a sample certification form creditors may use to comply  with  the
    48  requirements of this section.
    49    6. For purposes of this section, "state chartered banking institution"
    50  shall  have  the  same  meaning as defined in subdivision one of section
    51  twelve-a of this article.
    52    § 2. This act shall take effect on the ninetieth day after the depart-
    53  ment of financial services shall have promulgated regulations to  effec-
    54  tuate  the  provisions  of  this  act  and  shall apply to all contracts
    55  entered into, renewed, modified or amended on or  after  such  effective
    56  date.
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