A coalition of New York City landlords has initiated a legal challenge against what they describe as Mayor Zohran Mamdani’s “rigged” rent freeze. They allege the decision relied on “manipulated data,” calling it a “sham” in a vigorous new lawsuit.
Filed in Staten Island Supreme Court, the lawsuit targets the city’s Rent Guidelines Board, challenging the legality of the board’s June 25 ruling that imposed a two-year rent freeze on one million stabilized housing units.
The landlords argue the board, consisting of nine members, skewed its data and neglected multiple economic factors. According to them, this led to a “predetermined” and “irrational result,” conveniently aligning with Mamdani’s campaign promise to “freeze the rent,” thereby securing a political triumph for him.
The lawsuit claims that the Rent Guidelines Board’s decision on June 25 was not only compromised but also reflects a process marred by “corruption” and “interference.” The filing emphasizes that statutory mandates were dismissed, the board’s independence was undermined, and the outcome was predecided from the very start.
According to the complaint, Mamdani achieved this by appointing tenant activists loyal to his cause onto the supposedly independent board. Furthermore, the lawsuit criticizes Mamdani for allegedly utilizing over $5 million in taxpayer money through his Office of Mass Engagement, aimed more at promoting the rent freeze than fostering unbiased civic involvement.
Mamdani — who appointed six of the current RGB members — has argued the board was independent.
The landlords, who together own over 100 rent-stabilized units, ask a state judge to block the freeze before it can take effect in October.
“If allowed to stand, Order #58 will impose severe, irreparable harm” on the plaintiffs “and similarly-situated landlords (who stand to lose their properties), while setting a dangerous precedent that the RGB’s independence can be cast aside by Mayoral fiat,” the suit states.
One landlord who is part of the suit, Violet Zharku, said the amount of money she makes from renting her 50 units will longer keep up with the costs of running and repairing the apartments, forcing her family to look for other income streams to keep the three fully stabilized buildings in minimum shape.
“Freezing the rent does not freeze my mortgage, property taxes, insurance, water and sewer bills, utility costs or the cost of repairs,” she said.
“We are losing $172,000 annually,” she previously told The Post, citing skyrocketing 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,” Zharku said.
The landlords also seek an expedited discovery request for all communications regarding the RGB vote between the mayor and several of his offices — including the OME and one headed by tenant activist Cea Weaver.
“There is no actual basis for an across- the-board rent freeze here, and the Board’s decision must be overturned,” said attorney Randy Mastro, who represents the landlords and previously worked for then-Mayor Eric Adam’s administration.
“That is not the way government decisions by independent boards are supposed to be made,” he said, calling the suit “a check on the mayor’s abuse of power.”
City Hall had no immediate comment.