NYC board freezes rents; fulfilling Mamdani pledge

“This is a historic victory for New York City tenants,” Mamdani said in a statement. "This is the relief that working people across our city deserve."

One of the panel's property owner representatives, Lawyer Christina Smyth, resigned from the board ahead of the vote, saying in a statement that the move "crossed a legal line" and that fellow board members were ignoring data showing the negative impacts of freezing rents. 

“The Rent Guidelines Board has stopped being a fact-finding body,” Smyth said. “It has become a body that starts with an answer and vibe codes its way backward to justify it.”

The New York Apartment Association, which represents landlords, blasted the decision saying it was the first time the board has ever chosen to freeze rents for one and two year leases. 

"Our message is clear: this freeze will destroy the living conditions for hundreds of thousands of New Yorkers," Kenny Burgos, the association's CEO, said in a statement. "This was supported with study after study, including RGB data finding rent needed to increase just to run a building. 

The association pointed to data published by the board in April that projected NYC landlords would need increases of 4.5% on one-year leases and 8.5% on two-year leases, just to cover their operating costs.

Freezing rents was a key campaign pledge for Mamdani, a democratic socialist who made New York City's high housing costs and deteriorating conditions in rent-subsidized apartments a key plank of his mayoral bid. Shortly after taking office in January, Mamdani appointed five new members to the rent control board in a sweep aimed at packing it with supporters of his rent freeze plan.

Last month, the board voted to consider a range of options, from a two-year freeze to a 2% increase on one-year leases and a 4% increase on two-year leases.

"The Rent Guidelines Board ignored its own data and made a terrible decision tonight," Real Estate Board of New York President James Whelan said in a statement. "Tonight's vote may be politically popular, but it will make New York's housing crisis worse."

The city's rent stabilization law, first enacted in 1969, restricts annual rent increases for specific apartments, with any increases set annually by the rent board. It affects roughly 1 million apartments in the city and has survived dozens of legal challenges over the past several decades.

Critics have described the rent control system as "welfare for the rich" and said New York City is losing millions of dollars a year in potential revenue from the costly housing regulatory system.

Supporters say it's a crucial safety net in a city with some of the highest rents in the nation and a lack of affordable housing that is contributing to people leaving the state.