A group of six New York City property owners is taking Mayor Zohran Kwame Mamdani's rent freeze to court, arguing that the city's Rent Guidelines Board didn't follow proper procedure when it approved the policy. The lawsuit, filed this week, challenges the board's decision to freeze rent increases on roughly one million rent-stabilized apartments — a move that delivered on one of Mamdani's key campaign promises.
Kenny Burgos, CEO of the New York Apartment Association, which represents thousands of rent-stabilized landlords, told Fox Business on Thursday that while his group isn't a party to the lawsuit, the case raises legitimate questions. "The suit is actually about the process that's being called into question and deserves questioning," Burgos said.
The Rent Guidelines Board voted 7-1 in June to freeze rents on one- and two-year leases, meaning landlords can't raise rents on affected apartments during the freeze period. But Burgos pointed out that the board acknowledged costs had risen 5% and still approved a two-year freeze, relying on a potential future capital injection that board members had "no power over" and no certainty would materialize. That, he said, goes beyond what he sees as the board's legal mandate.
The controversy deepened when board member Christina Smyth, a landlord representative, resigned shortly before the vote. "The rebuilt board was required to deliver a rent freeze. Everything since has been theater," Smyth said in her resignation. City Hall rejected the claim, insisting the board operates independently.
Burgos argued that the resignation alone warrants a closer look in court. "That episode deserves questions," he said.
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. But critics say that's not enough. Landlords have been vocal about rising insurance, financing, and operating costs, and billionaire investor Bill Ackman also questioned the policy after a mayor-appointed commission recommended an 18.2% pay increase for elected officials, citing 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. The lawsuit now puts that victory under judicial scrutiny.
