Could a legal challenge stop Mamdani’s rent freeze?
Herrick partner, Scott E. Mollen, was quoted in The Real Deal discussing potential legal challenges that the NYC Rent Guidelines Board may face if the board supports Mayor Zohran Mamdani’s plan to freeze rents.
The article noted that some in the real estate industry have questioned whether the Rent Guidelines Board is still operating as an independent body.
"If the board is simply going to take directions from the mayor, then the whole process becomes a sham," said Scott, a former chairperson of the rent board.
The article highlighted that "a legal challenge could delay a rent freeze or, if successful, stop it completely."
Ongoing distress in rent-stabilized housing may improve the chances of any lawsuit succeeding, according to Scott.
"If they freeze rents and property owners continue to lose properties, I think the industry will feel that the Rent Guidelines Board has increased the likelihood that courts may finally conclude that the rent-stabilization system has gone too far," he said.
Read the full article in The Real Deal here. Access may require a subscription.