Prohibits rent minimums in all mortgages regardless of when issued.

New York Assembly Bill A00174 aimed to prevent mortgage lenders from penalizing property owners who set lower rental rates. Specifically, it sought to prohibit mortgage agreements from including clauses that impose fees, defaults, or other penalties on borrowers for not charging a minimum rent on their properties. The bill intended to apply this prohibition to all mortgages, regardless of when they were issued.

Supporters of the bill argued that it would empower property owners to offer more affordable housing options without fear of financial repercussions from lenders. They believed that removing rent minimum requirements from mortgage agreements could help address housing affordability issues by allowing landlords to set rents based on market conditions and tenant needs, rather than lender-imposed constraints.

Opponents contended that the bill could increase financial risks for lenders, potentially leading to stricter lending criteria or higher interest rates to offset the perceived risk. They also expressed concerns that the legislation might disrupt existing contractual agreements and create legal uncertainties, particularly for mortgages that were already in place.