Full Breakdown
Landlords Sue NYC Rent Guidelines Board Over June 25 Rent Freeze
7/23/2026, 1:42:46 PM
Core Event: Lawsuit Targets Historic Rent-Freeze Decision
A coalition of New York City landlords filed an Article 78 petition in the New York State Supreme Court on Staten Island, seeking to overturn the Rent Guidelines Board’s (RGB) 7-1 vote on June 25 that froze rent increases for one- and two-year leases in rent-stabilized apartments. The plaintiffs argue the board’s process was a “sham,” that Mayor Zohran Mamdani stacked the board with loyalists, and that the board manipulated its own data to justify a zero-percent increase.
Background & Context
Mayor Mamdani campaigned on a citywide rent freeze and, after taking office, encouraged tenant testimony at RGB hearings while appointing six of the nine board members in February. The RGB, an independent body mandated to set annual rent adjustments based on economic data, had previously frozen rents three times under former Mayor Bill de Blasio; those challenges were unsuccessful. The June 25 vote marked the first time the board approved a zero-percent increase for both lease terms, affecting roughly one million apartments—about 40 percent of the city’s rental housing stock.
Data & Statistics
- Board vote: 7-1 in favor of the freeze (June 25).
- Scope: Approximately 1 million rent-stabilized units, representing 40 percent of New York’s rental housing.
- Landlord cost claim: RGB data show operating costs rose 5.3 percent over the prior year.
- Tenant-advocate cost claim: Separate data cite a 6 percent rise in net operating income (NOI) citywide, while the RGB’s own report notes a 6.2 percent NOI increase between 2023 and 2024.
The plaintiffs contend the board ignored the operating-cost increase and understated landlord expenses, whereas tenant groups point to rising NOI as evidence that landlords can absorb a freeze.
Official Statements & Responses
The mayor’s Law Department indicated it is prepared to defend the board’s decision. A representative of the RGB declined to comment, directing inquiries to the mayor’s office.
Randy Mastro, former deputy mayor under the Adams administration and counsel for the plaintiffs, emphasized that the board’s process was predetermined to fulfill the mayor’s campaign promise.
Verbatim Quotes
- “The Rent Guidelines Board has stopped being a fact-finding body. It has become a body that starts with an answer and vibe codes its way backward to justify it,” — Christina Smyth.
- “The RGB failed to meet its legal mandate of setting rent adjustments based on its own data and research, which strongly justified a rent increase,” — Ann Korchak.
- “This is a perversion of the process.” — Deborah Riegel, Rosenberg & Estis attorney.
Conflicting Reports & Gaps
Sources differ on the number of plaintiffs (five, six, or seven landlords) and on the precise metric used to measure landlord profitability (operating-cost increase 5.3 percent vs. NOI increase 6 percent vs. 6.2 percent). The lawsuit does not disclose the full composition of the ownership entities beyond a few named LLCs.
What’s Next
A judge has ordered the city to submit its defense in September, after which the court will decide whether to annul the RGB’s June 25 rent-freeze order. The outcome could reshape how rent-stabilization adjustments are calculated in future years.
