NYC Mayor Zohran Mamdani Faces Lawsuit Over Rent Freeze Order

A coalition of New York City landlords has filed a lawsuit challenging Mayor Zohran Mamdani’s rent freeze policy, arguing that the decision was politically motivated, based on distorted data, and unlawfully influenced the city’s independent Rent Guidelines Board (RGB).

The lawsuit, filed Wednesday in Staten Island Supreme Court, seeks to overturn the RGB’s June 25 vote approving a two-year rent freeze for approximately one million rent-stabilized apartments across New York City.

The landlords allege that the nine-member board ignored economic realities and manipulated its own findings to fulfill Mamdani’s campaign promise of freezing rents.

According to the complaint, the board’s decision was “tainted and corrupt,” claiming it undermined the independence of the RGB and that the outcome had been predetermined from the beginning.

The plaintiffs further allege that Mayor Mamdani appointed loyal tenant advocates to the board and used the city’s Office of Mass Engagement to spend more than $5 million in taxpayer funds promoting the rent freeze rather than facilitating neutral public engagement.

Mayor Mamdani has rejected those allegations, maintaining that the Rent Guidelines Board acted independently and reached its decision without interference from City Hall.

The landlords, who collectively own more than 100 rent-stabilized apartments, are asking a state judge to block the order before it takes effect in October.

The lawsuit argues that allowing the rent freeze to stand would cause irreparable financial harm to property owners and set a dangerous precedent by permitting political influence over an independent regulatory body.

One of the plaintiffs, Violet Zarku, said rental income from her family’s 50 apartments is no longer sufficient to cover mortgage payments, property taxes, insurance, utilities, and maintenance costs.

“A rent freeze doesn’t stop my mortgage, property taxes, insurance, water bills, electricity costs, or repair expenses,” Zarku said.

Her family invested more than $300,000 to renovate three rent-stabilized buildings, but rising operating costs—particularly insurance premiums—have pushed the properties into financial distress. She said one building in Astoria has already been listed for sale, adding that the family is losing about $172,000 annually.

Zarku also said her tenants owe more than $70,000 in unpaid rent.

Another plaintiff, a Bronx landlord, reported nearly $90,000 in rental arrears, while a Queens property owner said tenants owe approximately $70,000, including more than $25,000 owed by a single tenant.

The lawsuit also seeks disclosure of communications between the mayor’s office, the Rent Guidelines Board, the Office of Mass Engagement, and other city agencies regarding the rent freeze decision.

Representing the landlords, attorney Randy Mastro, a former senior official in the Eric Adams administration, argued that the board lacked a factual basis for imposing a citywide rent freeze.

“There is no legitimate justification for such a sweeping rent freeze, and the Rent Guidelines Board’s decision should be overturned,” Mastro said.

If successful, the lawsuit could delay or block one of Mayor Mamdani’s signature housing policies before it is scheduled to take effect later this year.