NEW YORK — A coalition of New York City landlords has filed a lawsuit challenging Mayor Zohran Mamdani's signature rent freeze policy, arguing that the decision by the city's Rent Guidelines Board was unlawfully influenced by the mayor and should be overturned.
The lawsuit, filed in New York state court on Wednesday, targets the Rent Guidelines Board's June 25 vote to freeze rents on both one-year and two-year leases for rent-stabilized apartments beginning Oct. 1. The measure affects roughly 1 million rent-stabilized units across the city and marked the first time the board approved a freeze for both lease terms.
The landlords contend that the board failed to operate independently, alleging the outcome had been predetermined to fulfill one of Mamdani's central campaign promises. According to court filings, the plaintiffs argue the mayor improperly influenced the board through appointments and by presenting what they describe as selective information during the decision-making process.
The plaintiffs are seeking to block implementation of the rent freeze and have asked the court to invalidate the board's decision. They argue that operating costs for landlords, including taxes, insurance and maintenance expenses, continue to rise and that a rent freeze could threaten the financial viability of some rent-stabilized buildings.
City Hall has defended the policy and the board's process. Following the June vote, Mamdani said the independent Rent Guidelines Board had reviewed economic data, tenant affordability, cost-of-living pressures and building operating expenses before approving the freeze. He described the decision as a historic step to provide relief for working New Yorkers while pledging to continue pursuing affordable housing initiatives and measures to reduce building operating costs.
The Rent Guidelines Board approved the freeze by a 7-1 vote after public hearings and deliberations. The board is responsible under New York law for setting annual rent adjustments for rent-stabilized apartments. The freeze applies to leases commencing between Oct. 1, 2026, and Sept. 30, 2027.
The legal challenge represents the first major court test of Mamdani's high-profile housing policy since he took office. Previous rent freezes adopted by the board have survived legal scrutiny, although the current plaintiffs argue their case raises new legal issues regarding the board's independence and the mayor's role in the process.
No court hearing date had been announced as of Thursday, and the city had not publicly detailed its legal response beyond defending the independence of the Rent Guidelines Board.
