News

NY Gov. Vetoes Rent Minimum Bill

October 21, 2025

New York Governor Kathy Hochul (D) vetoed a bill that would have prohibited rent minimums in mortgage loan agreements.

  • The bills A174 and S1163 passed both chambers in mid-June. 
  • Hochul vetoed the bill on Oct. 16 after it was delivered to her a week earlier. 

Why it matters: There were concerns that the broad language in the bill could have caused unintended consequences for lenders’ rights, such as lease approvals. Hochul’s veto message echoed those concerns, among others. 
 
The key text of the bill’s language is below:

Rent Minimums Prohibited. No mortgagor on a loan secured primarily by an interest in real property shall be charged a fee, forced to default, or otherwise penalized by the mortgagee because the mortgagor did not set a high enough rent on all or part of such real property. All terms of a mortgage which would cause a mortgagor to be penalized for not setting a high enough rent shall be void and unenforceable as against public policy.

If it had been enacted, the provision would have taken effect immediately and would have been retroactive.

What’s next: While the veto is a positive development, the legislation could be revived by the authors in a future session. 

Contact David McCarthy (dmccarthy@crefc.org) with any questions.

Contact 

David McCarthy
Managing Director,
Chief Lobbyist, Head of Legislative Affairs
202.448.0855
dmccarthy@crefc.org
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.

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