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Landlords sue to overturn NYC rent freeze on rent-stabilized units
The lawsuit asks a court to void the Rent Guidelines Board’s decision, arguing the process disregarded statutory factors.
Landlords have filed a lawsuit in Staten Island seeking to declare New York City’s recent rent freeze unlawful and to force a new board determination, according to HousingWire. The complaint also asks for expedited discovery and an evidentiary hearing to examine how the board reached its decision.
The freeze, put in place nearly a month ago, affects roughly 1 million rent-stabilized units across the city for up to two years. The landlords are requesting the court annul the freeze, argue the decision process was rigged, and contend board capture drove the outcome.
Landlords allege board capture and say the board cited 32% of surveyed rent-stabilized mortgages with insufficient income to cover payments. HousingWire also notes the lawsuit arrives as Mayor Zohran Mamdani’s administration tries to demonstrate progress on housing supply through steps like zoning changes intended to accelerate construction.
The outlet reports this is the second rent-stabilization lawsuit filed since voters elected Mamdani last November. HousingWire adds that the first suit in federal court targets a 2019 statewide law that closed a renovation-related loophole allowing landlords to remove units from stabilization, while an attorney cited by HousingWire links the broader dispute to higher construction costs and landlords choosing to keep some units empty.