New York landlords filed a lawsuit against the Rent Guidelines Board to challenge the city's first-ever two-year rent freeze.

A group of New York landlords has filed an Article 78 petition in Staten Island to annul the Rent Guidelines Board's recent decision to freeze rents on one million regulated apartments for two years. The lawsuit argues that the board's decision was a "sham" process with a predetermined outcome designed to fulfill a campaign promise made by Mayor Zohran Mamdani. The plaintiffs, including building ownership companies associated with Michael Fazio, Violet Zharku, and Sophia Hepheastou, claim the board ignored rising operating costs such as insurance, maintenance, and utilities. They argue the board manipulated data to favor tenants while neglecting the economic realities of property owners. The complaint also highlights the resignation of Christina Smyth, a landlord representative who quit the panel just before the vote, calling the process "theater." City Hall spokesperson Matt Rauschenbach stated the administration is prepared to defend the decision, maintaining that the board is an independent body that evaluated all relevant data. The city will present its defense in September.

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