- Summary
- Actions
- Committee Votes
- Floor Votes
- Memo
- Text
- LFIN
- Chamber Video/Transcript
A03275 Summary:
BILL NO | A03275B |
  | |
SAME AS | SAME AS S01476-B |
  | |
SPONSOR | Epstein |
  | |
COSPNSR | Simon, Reyes, Taylor, Gottfried, Mosley, D'Urso, Cruz, Blake, Miller MG, Cook, Ortiz, Barron, Glick |
  | |
MLTSPNSR | Nolan |
  | |
  | |
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. |
A03275 Actions:
BILL NO | A03275B | |||||||||||||||||||||||||||||||||||||||||||||||||
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01/29/2019 | referred to banks | |||||||||||||||||||||||||||||||||||||||||||||||||
05/30/2019 | amend and recommit to banks | |||||||||||||||||||||||||||||||||||||||||||||||||
05/30/2019 | print number 3275a | |||||||||||||||||||||||||||||||||||||||||||||||||
06/05/2019 | reported referred to rules | |||||||||||||||||||||||||||||||||||||||||||||||||
06/07/2019 | amend and recommit to rules 3275b | |||||||||||||||||||||||||||||||||||||||||||||||||
06/13/2019 | reported | |||||||||||||||||||||||||||||||||||||||||||||||||
06/13/2019 | rules report cal.252 | |||||||||||||||||||||||||||||||||||||||||||||||||
06/13/2019 | ordered to third reading rules cal.252 | |||||||||||||||||||||||||||||||||||||||||||||||||
06/18/2019 | passed assembly | |||||||||||||||||||||||||||||||||||||||||||||||||
06/18/2019 | delivered to senate | |||||||||||||||||||||||||||||||||||||||||||||||||
06/18/2019 | REFERRED TO RULES | |||||||||||||||||||||||||||||||||||||||||||||||||
01/08/2020 | DIED IN SENATE | |||||||||||||||||||||||||||||||||||||||||||||||||
01/08/2020 | RETURNED TO ASSEMBLY | |||||||||||||||||||||||||||||||||||||||||||||||||
01/08/2020 | ordered to third reading cal.133 | |||||||||||||||||||||||||||||||||||||||||||||||||
03/11/2020 | passed assembly | |||||||||||||||||||||||||||||||||||||||||||||||||
03/11/2020 | delivered to senate | |||||||||||||||||||||||||||||||||||||||||||||||||
03/11/2020 | REFERRED TO BANKS | |||||||||||||||||||||||||||||||||||||||||||||||||
07/22/2020 | SUBSTITUTED FOR S1476B | |||||||||||||||||||||||||||||||||||||||||||||||||
07/22/2020 | 3RD READING CAL.875 | |||||||||||||||||||||||||||||||||||||||||||||||||
07/22/2020 | PASSED SENATE | |||||||||||||||||||||||||||||||||||||||||||||||||
07/22/2020 | RETURNED TO ASSEMBLY | |||||||||||||||||||||||||||||||||||||||||||||||||
12/11/2020 | delivered to governor | |||||||||||||||||||||||||||||||||||||||||||||||||
12/23/2020 | signed chap.351 | |||||||||||||||||||||||||||||||||||||||||||||||||
12/23/2020 | approval memo.55 |
A03275 Committee Votes:
Zebrowski | Aye | Lalor | Nay | ||||||
Perry | Aye | Finch | Nay | ||||||
Abbate | Aye | Mikulin | Nay | ||||||
Miller | Excused | Smith | Nay | ||||||
Weprin | Aye | Manktelow | Nay | ||||||
Rodriguez | Excused | Salka | Aye | ||||||
Bichotte | Aye | Schmitt | Nay | ||||||
Blake | Aye | Smullen | Nay | ||||||
Jean-Pierre | Aye | ||||||||
Seawright | Aye | ||||||||
Richardson | Aye | ||||||||
Dickens | Nay | ||||||||
De La Rosa | Aye | ||||||||
Vanel | Aye | ||||||||
Wright | Aye | ||||||||
Niou | Aye | ||||||||
Taylor | Aye | ||||||||
Barnwell | Aye | ||||||||
Stern | Aye | ||||||||
Hevesi | Aye | ||||||||
Sayegh | Aye | ||||||||
Burke | Aye | ||||||||
Buttenschon | Aye | ||||||||
Heastie | Excused | Kolb | Aye | ||||||
Gottfried | Aye | Crouch | Aye | ||||||
Lentol | Aye | Finch | Aye | ||||||
Gantt | Excused | Barclay | Aye | ||||||
Nolan | Excused | Raia | Aye | ||||||
Weinstein | Aye | Hawley | Aye | ||||||
Ortiz | Aye | Giglio | Aye | ||||||
Pretlow | Aye | Malliotakis | Aye | ||||||
Cook | Excused | ||||||||
Glick | Aye | ||||||||
Aubry | Aye | ||||||||
Englebright | Aye | ||||||||
Dinowitz | Aye | ||||||||
Colton | Aye | ||||||||
Magnarelli | Aye | ||||||||
Perry | Aye | ||||||||
Paulin | Aye | ||||||||
Titus | Aye | ||||||||
Peoples-Stokes | Excused | ||||||||
Benedetto | Aye | ||||||||
Lavine | Aye | ||||||||
Lupardo | Aye | ||||||||
Zebrowski | Aye | ||||||||
Go to top
A03275 Floor Votes:
Yes
Abbate
Yes
Crespo
ER
Gantt
No
LiPetri
Yes
Perry
Yes
Simon
Yes
Abinanti
Yes
Crouch
Yes
Garbarino
Yes
Lupardo
Yes
Pheffer Amato
Yes
Simotas
Yes
Arroyo
Yes
Cruz
Yes
Giglio
Yes
Magnarelli
Yes
Pichardo
No
Smith
No
Ashby
Yes
Cusick
Yes
Glick
No
Malliotakis
Yes
Pretlow
Yes
Smullen
Yes
Aubry
Yes
Cymbrowitz
Yes
Goodell
No
Manktelow
Yes
Quart
Yes
Solages
Yes
Barclay
Yes
Davila
Yes
Gottfried
Yes
McDonald
Yes
Ra
Yes
Stec
Yes
Barnwell
Yes
De La Rosa
Yes
Griffin
Yes
McDonough
No
Raia
Yes
Steck
Yes
Barrett
Yes
DenDekker
Yes
Gunther
Yes
McMahon
Yes
Ramos
Yes
Stern
Yes
Barron
Yes
DeStefano
No
Hawley
No
Mikulin
Yes
Raynor
Yes
Stirpe
Yes
Benedetto
Yes
Dickens
Yes
Hevesi
No
Miller B
Yes
Reilly
No
Tague
Yes
Bichotte
Yes
Dilan
Yes
Hunter
Yes
Miller MG
Yes
Reyes
Yes
Taylor
Yes
Blake
Yes
Dinowitz
Yes
Hyndman
Yes
Miller ML
Yes
Richardson
Yes
Thiele
No
Blankenbush
No
DiPietro
Yes
Jacobson
Yes
Montesano
Yes
Rivera
ER
Titus
No
Brabenec
Yes
D'Urso
Yes
Jaffee
No
Morinello
Yes
Rodriguez
Yes
Vanel
Yes
Braunstein
Yes
Eichenstein
Yes
Jean-Pierre
Yes
Mosley
Yes
Romeo
No
Walczyk
Yes
Bronson
Yes
Englebright
No
Johns
Yes
Niou
Yes
Rosenthal D
Yes
Walker
Yes
Buchwald
Yes
Epstein
Yes
Jones
Yes
Nolan
Yes
Rosenthal L
Yes
Wallace
Yes
Burke
Yes
Fahy
Yes
Joyner
No
Norris
Yes
Rozic
No
Walsh
Yes
Buttenschon
Yes
Fall
Yes
Kim
Yes
O'Donnell
Yes
Ryan
Yes
Weinstein
No
Byrne
Yes
Fernandez
Yes
Kolb
Yes
Ortiz
Yes
Salka
Yes
Weprin
No
Byrnes
No
Finch
No
Lalor
Yes
Otis
Yes
Santabarbara
Yes
Williams
Yes
Cahill
No
Fitzpatrick
Yes
Lavine
Yes
Palmesano
No
Sayegh
Yes
Woerner
Yes
Carroll
No
Friend
No
Lawrence
No
Palumbo
Yes
Schimminger
Yes
Wright
Yes
Colton
Yes
Frontus
Yes
Lentol
Yes
Paulin
No
Schmitt
Yes
Zebrowski
Yes
Cook
Yes
Galef
Yes
Lifton
Yes
Peoples-Stokes
Yes
Seawright
Yes
Mr. Speaker
‡ Indicates voting via videoconference
Yes
Abbate
Yes
Crespo
Yes
Galef
Yes
Lifton
Yes
Peoples-Stokes
No
Smith
Yes
Abinanti
No
Crouch
ER
Gantt
No
LiPetri
Yes
Perry
No
Smullen
Yes
Arroyo
Yes
Cruz
No
Garbarino
Yes
Lupardo
Yes
Pheffer Amato
Yes
Solages
No
Ashby
No
Cusick
No
Giglio
Yes
Magnarelli
Yes
Pichardo
No
Stec
Yes
Aubry
Yes
Cymbrowitz
Yes
Glick
No
Malliotakis
Yes
Pretlow
Yes
Steck
No
Barclay
Yes
Darling
No
Goodell
No
Manktelow
Yes
Quart
Yes
Stern
Yes
Barnwell
Yes
Davila
Yes
Gottfried
Yes
McDonald
No
Ra
Yes
Stirpe
Yes
Barrett
Yes
De La Rosa
Yes
Griffin
ER
McDonough
Yes
Ramos
No
Tague
ER
Barron
ER
DenDekker
ER
Gunther
Yes
McMahon
No
Reilly
Yes
Taylor
Yes
Benedetto
No
DeStefano
No
Hawley
No
Mikulin
Yes
Reyes
Yes
Thiele
ER
Bichotte
ER
Dickens
Yes
Hevesi
No
Miller B
ER
Richardson
Yes
Vanel
Yes
Blake
Yes
Dilan
Yes
Hunter
Yes
Miller MG
Yes
Rivera
No
Walczyk
No
Blankenbush
Yes
Dinowitz
Yes
Hyndman
No
Miller ML
Yes
Rodriguez
Yes
Walker
No
Brabenec
No
DiPietro
Yes
Jacobson
ER
Montesano
ER
Rosenthal D
Yes
Wallace
Yes
Braunstein
Yes
D'Urso
Yes
Jaffee
No
Morinello
Yes
Rosenthal L
No
Walsh
Yes
Bronson
ER
Eichenstein
Yes
Jean-Pierre
Yes
Mosley
Yes
Rozic
ER
Weinstein
Yes
Buchwald
Yes
Englebright
No
Johns
Yes
Niou
Yes
Ryan
Yes
Weprin
Yes
Burke
Yes
Epstein
No
Jones
Yes
Nolan
No
Salka
Yes
Williams
No
Buttenschon
Yes
Fahy
Yes
Joyner
No
Norris
Yes
Santabarbara
Yes
Woerner
No
Byrne
Yes
Fall
Yes
Kim
Yes
O'Donnell
No
Sayegh
Yes
Wright
No
Byrnes
Yes
Fernandez
No
Kolb
Yes
Ortiz
ER
Schimminger
Yes
Zebrowski
Yes
Cahill
ER
Finch
No
Lalor
Yes
Otis
No
Schmitt
Yes
Mr. Speaker
Yes
Carroll
No
Fitzpatrick
Yes
Lavine
No
Palmesano
Yes
Seawright
Yes
Colton
No
Friend
No
Lawrence
No
Palumbo
Yes
Simon
Yes
Cook
Yes
Frontus
Yes
Lentol
Yes
Paulin
Yes
Simotas
‡ Indicates voting via videoconference
A03275 Text:
Go to top STATE OF NEW YORK ________________________________________________________________________ 3275--B 2019-2020 Regular Sessions IN ASSEMBLY 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: 1 Section 1. 1. For the purposes of this act: 2 (a) "financial institution" shall include, but not be limited to, a 3 commercial bank, trust company, savings institution, credit union, or 4 any other entity authorized to originate and service loans; 5 (b) "small business" shall mean a business that meets the definition 6 of a small business as defined by the United States Small Business 7 Administration; and 8 (c) "mezzanine debt" shall mean debt carried by a borrower that may be 9 subordinate to the primary lien and/or common shares and reported as 10 assets for the purposes of financing such primary lien. 11 2. The department of financial services is hereby authorized and 12 directed to prepare or have prepared a study to review the process in 13 which financial institutions provide loans to landlords acquiring or 14 refinancing property that includes rent-regulated and/or small business 15 tenants. Such study shall examine and report by type of lender, range of 16 building sizes, and any other criteria, trends in predatory equity and 17 shall include, but not be limited to: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD02520-06-9A. 3275--B 2 1 (a) whether and how financial institutions are considering the follow- 2 ing factors when reviewing a landlord's loan application: 3 (i) debt service coverage ratio; 4 (ii) capitalization rate; 5 (iii) gross rent multiplier; 6 (iv) loan to value; and 7 (v) net operating income, including income and expenses; 8 (b) whether and how financial institutions are including the following 9 factors in their underwriting calculations of debt: 10 (i) sources of income, including residential rent, commercial rent and 11 maintenance from cooperative apartment owners, and how financial insti- 12 tutions verify the accuracy of such information; 13 (ii) current rent charged and projected rent increases to be charged 14 in the future; 15 (iii) the number and size of units in a building and whether such 16 units are used for residential, commercial or another use; 17 (iv) whether any preferential rent is charged and any projections to 18 terminate such preferential rent in the future; 19 (v) the number of vacant units in a property, including whether such 20 units are classified as market rate, deregulated or rent-regulated and 21 how many vacant units are used for commercial or another non-residential 22 use; 23 (vi) whether individual apartment improvements will be performed on 24 any vacant units; 25 (vii) the number of rent-regulated units at the time of loan origi- 26 nation and how the financial institution verifies those numbers with the 27 division of housing and community renewal; 28 (viii) any projected construction or major capital improvements 29 planned for the property; 30 (ix) projections of any turnover in rent-regulated apartments; 31 (x) number of buildings financed in the loans; and 32 (xi) whether the property has received any government operating or 33 capital subsidies and explanation of any such subsidies; 34 (c) whether financial institutions are considering only currently 35 established rents and reasonable maintenance costs when determining the 36 net operating costs for the property such that they are acting in the 37 best interest of the long-term affordability and stability of the local 38 community; 39 (d) whether financial institutions are adequately examining the types 40 of capital improvements included in the landlord's plans for the proper- 41 ty; 42 (e) whether financial institutions are using accurate appraisal values 43 and appropriately doing so; 44 (f) whether financial institutions are ascertaining whether the land- 45 lord is taking on more debt than the property can support, including any 46 mezzanine debt on such property; 47 (g) whether financial institutions are considering a landlord's addi- 48 tional private equity including the source of such equity; 49 (h) whether financial institutions are considering a landlord's addi- 50 tional debt on the building or buildings including debt from other lend- 51 ers and whether financial institutions are considering any other 52 outstanding debt a landlord has outside of the loan applied for; 53 (i) how financial institutions are evaluating public records of land- 54 lords and property managers including, but not limited to liens and 55 violations against them;A. 3275--B 3 1 (j) whether and how financial institutions monitor the number of rent- 2 regulated units in a building prior to and after a loan disbursement; 3 (k) whether mortgages include clauses that require a certain debt 4 service coverage ratio or debt yield which are predicated on rent 5 increases or tenant turnover; 6 (l) whether financial institutions consider the use of additional 7 financing, including mezzanine debt, and how this financing is factored 8 into the underwriting of the loan, including examining the risks associ- 9 ated with transactions in which mezzanine debt is used; 10 (m) whether the use of mezzanine debt to finance projects involving 11 rent-regulated and/or small business tenants is advisable, and if there 12 is increased risk of foreclosure as short-term interest rates rise and 13 the cost of mezzanine financing increases; and what can happen to such 14 tenants and small businesses if there is more debt on a property than 15 the property can support; 16 (n) after consideration of the aforementioned factors in this section, 17 the primary reasons financial institutions deny landlords' loan applica- 18 tions; and 19 (o) any other criteria the department of financial services deems 20 necessary to understand the nature and frequency of predatory equity. 21 § 2. No later than eighteen months after the effective date of this 22 act, the department of financial services shall report to the legisla- 23 ture and the governor on the findings of the study conducted pursuant to 24 section two of this act including on the scope, nature and frequency of 25 involvement in predatory equity throughout the financial industry and 26 any legislative recommendations deemed to be necessary. 27 § 3. This act shall take effect immediately.