NY Governor Vetoes Prohibition on Rent Minimums in Mortgages

New York Governor Kathy Hochul recently vetoed legislation (A.174/S.1163) that would have voided and prohibited enforcement of mortgage terms that charged fees, forced defaults, or otherwise penalized a borrower for not setting a high enough rent when renting their mortgaged property. 

The legislation was intended to incentivize landlords to rent at lower rates, to help small businesses recover, and to fill vacant storefronts, and would also have applied retroactively to existing mortgages.