Landlords Sue NYC Mayor Over Rent Freeze
Landlords representing small property owners in New York City have united to file a lawsuit against Mayor Zohran Mamdani, criticizing his recent rent freeze as unjust and based on flawed data.
On Wednesday, the coalition took legal action in Staten Island Supreme Court, targeting both the city’s Rent Guidelines Board (RGB) and Mamdani over the decision made last month to implement a rent freeze affecting one million stabilized units for both one- and two-year leases.
The lawsuit spans 128 pages, asserting that the RGB is predominantly composed of Mamdani’s allies, who allegedly manipulated the data to overlook various economic realities, leading to what they deem an “irrational result.” This, they argue, is not just inappropriate but also illegal.
“The [Rent Guidelines Board]’s June 25 determination was the result of a corrupted and compromised process: a statutory mandate flouted and disregarded, an independent agency held captive, and an outcome wired and predetermined from inception,” reads the complaint.
Landlords claim the RGB exaggerated their financial standing while downplaying increases in essential costs like insurance, utilities, and maintenance. For instance, property owner Violet Zharku shared her concerns with the New York Post, stating, “We are losing $172,000 annually,” due to escalating expenses.
“We can no longer invest in capital improvements or apartment renovations beyond critical repairs and we have no choice but to sell the buildings that we have spent generations maintaining,” she noted.
The filing indicates that Mayor Mamdani spent over $5 million in taxpayer funds through his Office of Mass Engagement. It argues that this was aimed more at promoting the rent freeze than fostering unbiased civic conversation.
After advocating for a rent freeze as part of his campaign, Mamdani appointed six current RGB members, though the board is supposed to operate independently.
The landlords are asking a state judge to declare the RGB’s actions unlawful and to block the rent freeze before it takes effect in October.
It’s important to note that the lawsuit doesn’t claim that all rent regulations in New York City are unlawful. Rather, it posits that the forthcoming freeze relies on corrupt practices and manipulated data to fulfill a campaign promise.
“There is no actual basis for an across-the-board rent freeze here, and the Board’s decision must be overturned,” stated attorney Randy Mastro, representing the landlords. He previously worked under former Mayor Eric Adams. “That is not the way government decisions by independent boards are supposed to be made.”
