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Bill

A 174

Prohibits rent minimums in mortgages

2025 Regular Session Introduced by Khaleel Anderson and 6 co-sponsors

Bill A 174 allows property owners to set rental prices freely by prohibiting mortgage lenders from imposing minimum rental income requirements, enhancing housing flexibility.

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WeVote Research Nonpartisan
Bill Summary · A 174

Summary of Bill A 174: Prohibits Rent Minimums in Mortgages

Bill Overview

  • Bill Number: A 174
  • Title: Prohibits Rent Minimums in Mortgages
  • Status: Tabled
  • Introduced On: January 08, 2025
  • Classification: Bill

Purpose and Intent

Bill A 174 aims to address the issue of rent minimums imposed by mortgage lenders on property owners. The primary intent of the bill is to eliminate any requirements that mandate a minimum rental income for properties financed through mortgages. This legislation seeks to provide greater flexibility for property owners, particularly in areas where rental markets may fluctuate or where property owners may choose to rent at lower rates for various reasons, such as affordability or tenant support.

Key Provisions

  • Prohibition of Rent Minimums: The bill explicitly prohibits mortgage lenders from requiring property owners to maintain a minimum rental income as a condition of their mortgage agreements.
  • Impact on Mortgage Agreements: By removing these minimums, property owners may have more freedom to set rental prices based on market conditions or personal circumstances without jeopardizing their mortgage terms.

Affected Parties

  • Property Owners: The primary beneficiaries of this bill would be property owners who seek to rent their properties without the constraints of minimum rental income requirements.
  • Tenants: Indirectly, tenants may benefit from increased rental options and potentially lower rents, as property owners may choose to offer more affordable housing solutions.
  • Mortgage Lenders: This bill would affect the policies and practices of mortgage lenders, who would no longer be able to impose minimum rental income conditions.

Legislative Timeline

  • January 08, 2025: Bill introduced and referred to the Judiciary Committee.
  • May 13, 2025: Reported and referred to the Codes Committee.
  • May 21, 2025: Reported and referred to Rules.
  • June 11, 2025: Passed in the Assembly and delivered to the Senate.
  • June 13, 2025: Passed in the Senate, returned to the Assembly, and substituted for S1163.
  • October 09, 2025: Delivered to the Governor.
  • October 16, 2025: Vetoed by the Governor.
  • October 17, 2025: Tabled.

Related Legislation

  • S 1163: Companion bill in the Senate.
  • A 974, A 11135, A 850: Prior-session bills related to housing and mortgage regulations.

Conclusion

Bill A 174 represents a significant shift in mortgage regulations concerning rental income requirements. While it has been tabled following a gubernatorial veto, the discussions surrounding this bill highlight ongoing concerns about housing affordability and the flexibility of property ownership in fluctuating rental markets. The implications of such legislation could reshape the landscape for both property owners and tenants in the future.

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

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