A group of six New York City property owners is challenging New York City Mayor Zohran Kwame Mamdani‘s rent freeze in court, questioning the process used by the city’s Rent Guidelines Board to approve the policy.
Kenny Burgos, CEO of the New York Apartment Association, told Fox Business on Thursday that his organization, which represents thousands of rent-stabilized landlords, is not a party to the lawsuit but believes the case raises questions about how the board reached its decision.
The Rent Guidelines Board voted 7-1 in June to freeze rent increases on one- and two-year leases covering roughly one million rent-stabilized apartments, delivering on one of Mamdani’s signature campaign promises. A rent freeze means landlords cannot raise rents on affected apartments for leases covered by the policy during the freeze period.
Board Process Questioned
Burgos said Mamdani had been open about wanting a rent freeze since his campaign and later appointed six members to the Rent Guidelines Board.
He said the board acknowledged costs had risen 5% but still approved a two-year freeze while relying on a potential future capital injection that, according to Burgos, board members had “no power over” and no certainty would materialize.
Burgos said that was outside what he viewed as the board’s legal mandate and that the lawsuit raises questions about the process.
“The suit is actually about the process that’s being called into question and deserves questioning,” Burgos told Fox Business.
He also pointed to a board member who resigned in protest around the time of the vote and said the outcome had been predetermined, arguing that the episode warrants questions in court.
Christina Smyth, a landlord representative on the board, resigned shortly before the vote, saying, “The rebuilt board was required to deliver a rent freeze. Everything since has been theater.” City Hall rejected the claim and maintained that the board operates independently.
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Rent Freeze Debate
The Mamdani administration has proposed some relief for distressed landlords, including potential one-time rent increases on vacant units in certain city-financed and city-regulated affordable housing, with roughly 300,000 apartments potentially qualifying.
The freeze has faced broader criticism from landlords over rising insurance, financing and operating costs. Billionaire investor Bill Ackman also questioned the policy after a mayor-appointed commission recommended an 18.2% pay increase for elected officials, citing factors including higher living costs.
Mamdani has described the rent freeze as a “historic victory” for tenants and part of his broader push to address housing affordability in New York City.
Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.
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