Prohibits bank investments in bad faith landlords

This bill prohibits state-chartered banks from lending money to landlords who have a history of specific bad faith actions, such as granting rent abatements due to code violations or engaging in harassment and fraud. To comply, banks must require landlords to certify that they do not have these violations or, if they do, prove that the loan will be used exclusively to fix immediate safety hazards. The legislation includes penalties of up to $50,000 for landlords who provide false information to secure financing under this rule. Once the state financial services department creates necessary regulations, the law will apply to all new, renewed, or modified loan contracts.