Potential Barriers in Zohran Mamdani's Efforts to Implement a Rent Freeze Policy
The Rent Guidelines Board (RGB), an independent administrative body set up under the Rent Stabilization Law, has the legal authority over rent adjustments in New York City. In its 57-year history, the RGB has frozen rents only three times, all under the Bill de Blasio administration.
The RGB is required to consider a series of objective factors when deciding whether to adjust regulated rents. These factors include the city's overall economic conditions, the physical condition of the apartments, and the financial impact on landlords and tenants. Administrative boards like the RGB enjoy discretion over matters entrusted to them, but they cannot ignore the criteria that are supposed to govern their decisions.
Zohran Mamdani, a potential mayoral candidate, has made a campaign promise of a four-year rent freeze for New York City's 1 million rent-regulated apartments. However, this promise ignores the fundamental legal framework that governs the RGB's decision-making.
Under Mamdani's administration in 2021, the RGB had not yet implemented a rent freeze. Mamdani advocated for freezing rent increases specifically for rent-stabilized tenants, but as of 2021, the RGB still voted for rent increases (up to 3% for one-year leases and 4.5% for two-year leases).
Members of the RGB must act in a fair and impartial manner, without bias or prejudgment. Public statements indicating prejudgment can require board members to recuse themselves from voting on the subject matter of the statements. Mamdani's promise to appoint board members who agree on a rent freeze is not permitted.
If a landlord could demonstrate that the RGB ignored evidence of increased operating costs or refused to consider relevant criteria, a court could overturn the RGB's decision in favor of a rent freeze. Christian Browne, an attorney and former member of the Giuliani administration, made a statement suggesting Mamdani's rent-freeze campaign promise could be used against him in a court of law.
Article 78 proceedings allow an aggrieved party to demonstrate that a board violated the governing law or failed to consider evidence. The RGB's decisions must be justified by the evidence they consider, and their decisions can be challenged in court if they are contrary to the evidence or based on ideology.
Mamdani's promise to enact rent freezes for four consecutive years is unprecedented. The RGB has only frozen rents three times in its history, all under the Bill de Blasio administration, and two of these freezes applied only to one-year leases and allowed 2 percent increases for two-year leases.
In conclusion, while Mamdani's rent-freeze campaign promise is ambitious, it may face legal challenges due to its disregard for the RGB's legal framework and the potential for prejudgment. The RGB's decisions must be based on objective evidence and consideration of all relevant factors, and any deviation from this could lead to legal action.
