Zohran Mamdani's Potential Challenges in Implementing a Rent Freeze Policy

In the heart of New York City, the Rent Guidelines Board (RGB) is preparing for a potential shake-up as mayoral candidate Zohran Mamdani has pledged to enact a four-year rent freeze for the city's 1 million rent-regulated apartments. However, Mamdani's proposal is facing criticism and legal scrutiny.

The RGB, an administrative board with the legal authority over rent adjustments, consists of nine members, appointed by the mayor. The board comprises two representatives for tenants' interests, two for landlords' interests, and five for the public's best interest. The RGB's decisions are governed by a series of objective factors, including real-estate taxes, sewer and water charges, landlords' operating and maintenance costs, vacancy rates, cost of living indices, and other available data.

Mamdani's rent-freeze pledge, if implemented, would go against the fundamental legal framework governing the RGB's decision-making process. Critics argue that the proposal ignores the criteria that are supposed to guide the board's decisions. Christian Browne, an attorney and former member of the Giuliani administration, has even suggested that Mamdani's rent-freeze campaign promise could be used against him in a court of law.

Legal criticism of Mamdani's proposal suggests that a court could overturn it based on a reasonable reading of the law. The Court of Appeals has made clear that members of an administrative board must act in a fair and impartial manner, without bias or prejudgment. Public statements indicating prejudgment by board members can require them to recuse themselves from voting on the subject matter of the statements.

The RGB has frozen rents only three times in its 57-year history, all under the Bill de Blasio administration. Two of these "freezes" applied only to one-year leases and allowed 2 percent increases for two-year leases. The concern among critics is that a four-year rent freeze could potentially harm the physical condition of rent-stabilized buildings and the housing market.

Any person harmed by the RGB's decision can commence an Article 78 special proceeding to review the decision. In an Article 78 proceeding, the aggrieved party can demonstrate that the board violated the governing law or failed to consider and apply the evidence in the record.

The RGB's decision to issue a rent freeze can also be challenged in court if it is found to be contrary to the evidence or based on ideology. As the mayoral election approaches, it remains to be seen how the legal challenges to Mamdani's rent-freeze proposal will unfold.