Key facts
- Tenant groups Tenants and Neighbors and the Metropolitan Council on Housing have filed a legal response to a landlord lawsuit.
- The lawsuit challenges the Rent Guidelines Board's decision to set a 0% rent increase for one- and two-year lease renewals.
- Landlords claim the board's decision was unlawful and ignored data showing a rent increase was warranted.
- Tenant groups argue that over 45% of rent-stabilized households are rent-burdened, with over 27% severely burdened.
- Tenant groups state that fewer than 10% of stabilized buildings report negative operating income.
- The tenant groups are seeking dismissal of the landlord lawsuit.
Tenant advocacy groups have entered the legal battle over New York City's rent freeze, filing a response to a landlord lawsuit in Staten Island court. The landlords are challenging the Rent Guidelines Board's June decision to implement a 0% rent increase for one- and two-year lease renewals for stabilized apartments, a move that aligns with Mayor Zohran Mamdani's housing affordability platform.
Landlords argue the board's decision was unlawful and disregarded data indicating a rent increase was justified, further alleging that Mamdani appointed board members who supported his vision. The tenant groups, however, contend that while landlord hardship should be considered, it should not override tenant hardships. They assert that landlords' financial difficulties are not as severe as claimed, citing that fewer than 10% of stabilized buildings report negative operating income and that sector operating income has risen 56.6% after inflation over 25 years.
The tenant groups' filing meticulously dissects the landlords' petition, conceding minor factual points while refuting the broader interpretation of evidence. They highlight that over 45% of rent-stabilized households are rent-burdened, with more than 27% severely burdened. The filing also references testimony from experts at institutions like the Fiscal Policy Institute, NYU's Furman Center, and Columbia's Center on Poverty and Social Policy, underscoring the thorough process behind the board's decision.
Regarding the accusation that Mayor Mamdani stacked the board, the tenant groups acknowledge the lawsuit accurately quoted former board member Christina Smyth's resignation letter. However, they dispute that the letter proves the outcome was predetermined, stating it "merely alleged certain things." The tenant groups are seeking outright dismissal of the case, arguing the Rent Guidelines Board acted within its legal authority and its decision was not arbitrary or capricious.