Seven Landlords Sue to Undo NYC's 0% Rent Freeze on 1M Units

Seven owner entities have sued to void the Rent Guidelines Board’s 0% increase on both one- and two-year leases for about 1 million rent-stabilized apartments. The suit was filed July 22 in state court on Staten Island and is pending; no ruling has been reported.

For owners and buyers of stabilized buildings, the practical point is that leases starting on or after Oct. 1 renew at 0% unless a court says otherwise.

Why it matters

The plaintiffs are Kenilworth Holdings LLC, 43rd Street Associates LLC, 1369 College LLC, 593 Park Place Management Inc., 21-45 23rd St. LLC, 39-12 62nd St. LLC and 42-59 Bowne St. LLC. According to Gothamist’s account of the filing, they ask the court to stop the freeze and compel the board to adopt an increase. The reporting also says they allege political interference in the board’s decision. Those are allegations, not findings.

The board’s page for Order #58 lists a June 25, 2026 vote covering leases that start between Oct. 1, 2026 and Sept. 30, 2027. amNewYork reported the vote at 7-1, with 0% for both lease terms. It is the first time the board has frozen two-year leases.

The numbers

• Plaintiffs: 7 owner entities.
• Units covered: about 1 million stabilized apartments.
• Adjustment: 0% on one-year and 0% on two-year leases.
• Vote: 7-1 on June 25, 2026.
• Lease window: Oct. 1, 2026 to Sept. 30, 2027.

We did not find a court index number for the case, so we cite none.

What’s next

The court has to decide whether to hear the challenge to the order and whether to pause it. Until it acts, the freeze governs every new lease in the window. Underwriters carrying stabilized rent rolls should model flat income for the 2026-27 term and treat any later increase as upside, not base case. More on the market is on the New York hub.

Methodology: RGB Order #58 page, Gothamist and amNewYork reporting on the filing and vote; court docket not located.