NYC Rent Freeze Takes Effect as Landlord Lawsuit Moves Ahead

A rent freeze covering roughly 1 million rent-stabilized apartments in New York City took effect on October 1, even as a group of landlords continues to challenge it in state court.

What the freeze does

The city's Rent Guidelines Board voted 7-1 on June 25 to set a 0% increase on both one-year and two-year lease renewals for stabilized units. According to a summary by law firm Borah, Goldstein, Altschuler, Nahins & Goidel, the freeze applies to leases beginning between October 1, 2026 and September 30, 2027. Stabilized units make up about 40% of the city's rental housing and house roughly 2 million New Yorkers.

Mayor Zohran Mamdani campaigned on a rent freeze; since taking office in January he has named a majority of the nine-member board.

The vote was not without internal dissent. Board member Christina Smyth stepped down hours before the vote, arguing the board was no longer weighing the evidence independently, according to the Borah Goldstein summary.

The legal challenge

Landlords sued in Manhattan Supreme Court, arguing the mayor improperly influenced the board and that it did not carry out enough independent analysis before voting, according to PoliticsNY, which covered a nearly six-hour hearing on September 2.

Judge Brendan Lantry has so far declined to block the freeze or to carry over the prior year's allowed increases, CRE Daily reported. At a September 21 hearing, he said he did not see authority to apply a past year's increase to this year. He did, however, order discovery, a step attorneys described as rare in this type of case, and called some aspects of the board's decision peculiar.

The case could take months. According to CRE Daily, a city appeal of any ruling against the freeze would automatically pause that ruling, adding further delay.

Leases are being signed now

Many tenants have already signed renewals at last year's rent. Attorneys quoted by CRE Daily said those leases are binding, but one litigator said any increase resulting from the lawsuit would likely be retroactive. That raises the possibility, if the city ultimately loses, that some tenants could be asked to pay back the difference.

What stabilized tenants should do

• Check your renewal offer. If your lease renews on or after October 1, a one- or two-year renewal should show no increase in the legal regulated rent. Separate charges allowed under state rules, such as for some building-wide improvements, may still apply.
• Sign on time. Return your renewal by the deadline on the form to protect your tenancy. Keep a copy of everything you sign and send.
• Look for retroactivity language. If a renewal includes a clause about future increases tied to the court case, consider asking a tenant attorney or local legal-aid group to review it before signing.
• Confirm your status. If you are unsure whether your unit is stabilized, you can request your rent history from New York State Homes and Community Renewal. The city's Rent Transparency Act also requires buildings with stabilized units to post a notice in shared spaces.
• Set aside a cushion if you can. Since the outcome of the lawsuit is uncertain, tenants worried about a possible retroactive charge may want to save the equivalent of a small increase each month.

Separately, the city's Rent Transparency Act, Local Law 86, now makes owners of any building containing a stabilized apartment put up a notice in shared spaces explaining that some units may be stabilized and where to check, 6sqft reported. That makes it easier for renters who are unsure of their status to find out whether the freeze applies to them.

What the freeze does not cover

The freeze applies only to rent-stabilized units. Market-rate apartments, which make up most of the rest of the city's rentals, are not affected, and landlords can raise those rents as the market allows at lease renewal.

For now, the zero-percent guideline stands. Tenants should watch for further rulings from Judge Lantry and for any appeal, which would determine whether this year's leases stay frozen.