The latest decision by the New York City Rent Guidelines Board (RGB) to freeze rents for one- and two-year leases in rent-stabilised apartments has far-reaching implications. With a 7-1 majority, the board voted for a zero percent increase. This measure appears to be a direct implementation of the electoral promises of Mayor Zohran Mamdani, who has advocated for tenants' rights and the stabilisation of housing costs.
This decision is expected to trigger a wave of lawsuits from disgruntled landlords and their interest groups. They argue that without rent increases, the maintenance of rent-stabilised apartments cannot be guaranteed. Ironically, Mamdani's own electoral promises could be used as legal grounds against him.
Kenny Burgos, CEO of the New York Apartment Association and former representative of the New York State Assembly, expressed his concerns: "This is a decision based on the Mayor's wishes because he assembled the board to implement his ideas." Burgos refers to Mamdani's appointment of six new members in February, including the new Chair Chantella Mitchell, following a series of resignations.
The resignation of RGB member Christina Smyth on the morning of the vote further amplifies this criticism. Smyth, a landlord's attorney, stated in her resignation letter that the RGB was "no longer a fact-finding body" but an organ that "starts with an answer and works backwards to justify it." She emphasised that Mamdani's appointments had resulted in the "rebuilt board having to deliver a rent freeze. Everything after that was theatre."
Zachary Rothken, head of the administrative law department at the law firm Rosenberg & Estis, who specialises in rent stabilisation, points out that the law obliges the board to consider actual data when setting rent guidelines. He refers to data provided by New York City to the RGB. An online report by the RGB, the "2026 Price Index of Operating Costs", recommended rent adjustments between 3.4 percent and 4.5 percent for one-year leases and between 4.8 percent and 8.5 percent for two-year leases. The 0 percent decision clearly contradicts this and suggests a predetermined outcome.
In contrast, City Councillor Harvey Epstein, a former tenant representative on the RGB, defends the decision as a "historic moment". He refers to the RGB's "2026 Income and Expense Study", which showed that the net operating income (NOI) for buildings with rent-stabilised units increased by 6.2 percent (2.2 percent adjusted for inflation). This marks the third consecutive year of rising NOIs for landlords. According to this report, NOI for landlords on Staten Island rose by 15.1 percent, followed by 10 percent in Manhattan.
