New York City’s historic rent freeze now rests with the courts - by Ron Cohen

New York City’s first-ever two-year rent freeze is now in the hands of a state Supreme Court judge, and the decision could reset income for owners of roughly one million rent-stabilized apartments housing some 2.4 million residents.

In June, the Rent Guidelines Board voted 7-1 to hold rent increases at 0% on both one- and two-year renewal leases beginning October 1 — the first two-year freeze in the board’s history and the fulfillment of a signature mayor Zohran Mamdani campaign promise.

In July, a group of small owners petitioned to overturn the vote under Article 78, calling the process a “sham” with a predetermined outcome. They asked the court to void the freeze, return the matter to the board, and keep last year’s increases — 3% on one-year and 4.5% on two-year leases — in place in the interim. The owners contend the board weighed tenant affordability while discounting rising costs, and that the mayor “put his thumb on the scale” by appointing a sympathetic majority.

At a nearly six-hour hearing on September 2 before Justice Brendan Lantry, the city countered that mayors are legally permitted to appoint board members and that the board reviewed thousands of pages of data. The judge pressed both sides and reserved decision; a ruling is expected within days.

The stakes extend beyond a single lease year. Whichever way the court rules, an appeal appears likely — and the outcome may redefine how independently the board sets rents going forward.

Ron Cohen is chief sales officer/associate broker at Besen Partners, New York, N.Y.