A judge on Thursday did not commit to deciding on a lawsuit that challenges the rent freeze on about 1 million stabilized apartments.
That means the price pause on one- and two-year leases will for now stay in place for contracts that start on or after Oct. 1, including renewals.
The Rent Guidelines Board in June approved no increases on rent-stabilized leases, and the following month, a group of landlords sued to challenge the freeze. The landlords, represented by former Mayor Eric Adams’ first deputy mayor Randy Mastro, alleged the board “ran a sham process with a predetermined outcome” and dismissed data showing that a rent increase was warranted.
The members of the board and City Hall defended the freeze and emphasized the board’s independence from Mayor Zohran Mamdani, who campaigned on a promise of freezing the rent.
On Thursday, Manhattan Supreme Court Judge Brendan Lantry acknowledged the approaching Oct. 1 date was “of significant concern.”
“We are working as expeditiously as we can to resolve this case,” Lantry said. “I’m not going to operate with a shotgun to my head.”
Lantry indicated he’d make a decision on whether the rent freeze was legal or not — and whether the rent-setting process should begin again — before the end of the year.
In the meantime, tenants and landlords will enter into new and renewing rent-stabilized leases without any rate hikes.
City Hall Must Share Messages
Mamdani appointed six of the board’s nine members when he took office. Adams appointed three of the members, including one who resigned just hours before the board was to vote on how much to raise the rents.
Earlier this month, Lantry ordered the Mamdani administration to turn over all communications from top city officials and the Rent Guidelines Board for the year before the rent freeze decision. Lantry gave a deadline of Wednesday, Sept. 23.
On Thursday, Corporation Counsel Steven Banks and his colleagues told the judge they were unable to produce the communications, including emails and text messages, by that deadline.
Lantry then directed Banks to send screenshots of the communications — rather than the full copies with metadata — by Tuesday, Sept. 29. He gave City Hall 30 days to produce the complete information.
“This is time-sensitive. It needs to be done expeditiously,” Lantry said.
The judge also said he was not prepared to carry over the rent increases approved by the previous Rent Guidelines Board in 2025, which the landlords had asked him to do. He said he didn’t think the court had authority to take such action. Last year, the board voted on hikes of 3% increases for one-year leases and 4.5% for two-year leases.
While Banks said he agreed with the judge, Mastro argued that for leases signed until the judge decided, the rent freeze would remain and would harm the landlords.
“If the zero-zero [percent increase] stays in place, the landlords are gonna be stuck with that,” Mastro said.
Many landlords of rent-stabilized apartments have already issued renewal leases to tenants, who are guaranteed under law to receive the renewals at least 90 days ahead of the lease term expiring.
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