NYC’s rent freeze is still in place, at least for now
- Rent-stabilized renewal offers should have zero percent rent increases
- A judge will rule on a lawsuit to rollback the freeze by the end of the year
Last week a judge said he would not commit to ruling on the legality of the rent freeze by today's Oct. 1st deadline, when the freeze begins.
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For now, tenants in New York City’s one million rent-stabilized apartments will not see hikes on leases that start after Oct. 1st. The rent freeze remains in place for one- and two-year leases and renewals, even as a group of landlords are suing to reverse the decision made by the Rent Guidelines Board earlier this year.
Last week a judge said he would not commit to ruling on the legality of the rent freeze by today's Oct. 1st deadline, when the freeze begins.
According to The City Reporter, Manhattan Supreme Court Judge Brendan Lantry said he was working as fast as possible and would make a decision in the case before the end of the year. “I’m not going to operate with a shotgun to my head,” he said.
The legal fight over rent increase
Every June, the Rent Guidelines Board (RGB)—a group of nine mayoral appointees—votes on the permitted percentage increases in rent for stabilized tenants. This year, after Zohran Mamdani’s mayoral victory and his promise to freeze rents, the board approved a zero percent increase on both one- and two-year leases issued between Oct. 1st 2026 and Sept. 30th 2027.
This prompted a group of landlords who own buildings in Queens, Staten Island, Brooklyn, and the Bronx to file a lawsuit to get the decision reconsidered, calling the freeze unlawful and saying the board failed to act independently.
As the Oct. 1st deadline approached, Judge Lantry ruled out a request from the landlords’ lawyers to revert to the previous rent increases of 3 percent for one-year leases and 4.5 percent for two-year leases. Lantry said it was not in the court’s authority, The Real Deal reported.
What the case means for renewals after Oct. 1st
The law requires rent-stabilized tenants to be offered lease renewals no fewer than 90 days and no more than 150 days prior to the end of the lease. That means tenants that are due a renewal on or after Oct. 1st may have already received renewals.
“Tenants are receiving renewal offers with the zero percent and signing and returning them and expecting that to be their increase for the next year or two depending on the term that they choose,” said attorney Caitriona Fox at Himmelstein Gribben & Joseph, which is participating in the case to keep the rent freeze.
The advice for rent-stabilized tenants is to sign and renew that lease.
“Try to get the countersigned copy from the landlord if you can,” said attorney Vanessa Vecchiarello, also at Himmelstein Gribben & Joseph.
If you don't get a renewal and you're due one, you can file a complaint with NYS Homes and Community Renewal.
Under the rent-stabilization code, if a signed renewal lease is not returned to you, the tenancy continues on the same basis. “Either way, that would mean the rent is not increased,” Vecchiarello said. “Whether that’s because the new lease has taken effect or because the landlord has failed to comply with the requirements of sending a new lease.”
Landlords face a tough fight to win the case
Attorneys have told Brick that landlords suing to rollback the rent freeze must meet a high legal standard for what’s known as an Article 78 case, where a government agency’s decision is challenged in court. The judge in this case has granted a limited discovery asking the City to produce correspondence between the RGB and the Mamdani administration within 30 days.
According to Gothamist, Randy Mastro, the attorney representing the landlords, praised this ruling. “We are gratified by the judge's decision, and this targeted discovery goes to the heart of our position that this was a sham process with a predetermined outcome,” Mastro said.
What a landlord win could mean for stabilized tenants
If the landlord plaintiffs are successful in having the rent freeze reconsidered, the Rent Guidelines Board would need to carry out another vote on increases. What happens to renewals if the freeze is overturned is not yet clear.
“This is certainly an unprecedented situation and it is possible landlords could try to claw back those leases,” Vecchiarello said. “However, a lease is a contract,” she added. Once signed, the landlord is legally committed to offering the lease on those terms.
When the judge does issue a decision, the losing party, whether it is the landlords or the Rent Guidelines Board, will likely appeal. “That would then extend the timeline if the case is appealed up to the Appellate Division,” Vecchiarello said.
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