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Bill

S 4579

Prohibits bank investments in bad faith landlords

2025 Regular Session Introduced by Brad Hoylman-Sigal and 1 co-sponsor

Bill S 4579 prohibits banks from investing in bad faith landlords, protecting tenants by promoting ethical property management and improving living conditions.

PRINT NUMBER 4579A
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WeVote Research Nonpartisan
Bill Summary · S 4579

Summary of Bill S 4579: Prohibits Bank Investments in Bad Faith Landlords

Overview

Bill S 4579, introduced on February 7, 2025, aims to prohibit banks from investing in landlords who are deemed to be acting in bad faith. This legislation seeks to protect tenants and promote responsible property management by restricting financial support to landlords who engage in unethical practices.

Purpose and Intent

The primary intent of Bill S 4579 is to safeguard tenants from the negative impacts of bad faith landlords—those who may neglect property maintenance, engage in harassment, or fail to comply with housing regulations. By limiting banks' financial involvement with such landlords, the bill aims to encourage better practices in the rental market and enhance tenant protections.

Key Provisions

  • Investment Restrictions: The bill prohibits banks from providing financial investments, loans, or other forms of financial assistance to landlords identified as acting in bad faith.
  • Definition of Bad Faith: The bill outlines specific criteria that constitute bad faith actions by landlords, which may include:
    • Failure to maintain safe and habitable living conditions.
    • Engaging in retaliatory eviction practices.
    • Violating tenant rights as established by housing laws.
  • Reporting Requirements: Banks will be required to report their investment activities and ensure compliance with the new restrictions.
  • Enforcement Mechanisms: The bill establishes penalties for banks that violate the investment prohibitions, ensuring accountability.

Affected Parties

  • Landlords: The legislation directly impacts landlords who engage in bad faith practices, limiting their access to financial resources.
  • Banks: Financial institutions will need to adjust their investment strategies and conduct due diligence to comply with the new regulations.
  • Tenants: The bill aims to benefit tenants by reducing the prevalence of bad faith landlords, thereby improving their living conditions and rights.

Legislative Actions and Timeline

  • Introduced: February 7, 2025
  • Referred to Banks Committee: February 7, 2025
  • Amended and Recommitted: May 19, 2025
  • Current Status: The bill is currently in print as number 4579A following amendments made on May 19, 2025.

Related Legislation

  • S 7609: A related bill from a prior session that may address similar issues.
  • S 5401: Another prior-session bill that could have implications for landlord-tenant relationships.
  • A 4582: A companion bill in the Assembly that mirrors the provisions of S 4579.

Conclusion

Bill S 4579 represents a significant step towards enhancing tenant protections and promoting ethical practices among landlords. By restricting bank investments in bad faith landlords, the legislation aims to create a more equitable housing market and improve living conditions for tenants. As the bill progresses through the legislative process, its implications for landlords, banks, and tenants will continue to unfold.

Compiled from official sources — confirm details with the bill’s official record.

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