Rent Freeze Vote Set for Scrutiny after Judge OK

The rent freeze suit got a boost from a judge. 

Manhattan Supreme Court Judge Brendan Lantry granted “rare” discovery, allowing a team spearheaded by ex-Deputy Mayor Randy Mastro to dig into any written communications between the Mamdani administration and the Rent Guidelines Board.

Two weeks ahead of the freeze’s looming Oct. 1 effective date, Judge Lantry signaled skepticism around the process that led up to the RGB’s unprecedented vote to set no increases for both one- and two-year rent-stabilized leases. 

Not only did Lantry give Mastro the go-ahead to delve into “all written communications between any personnel” from a swath of Mamdani administration offices and the RGB, but he also spelled out why he was providing the infrequently granted opportunity for discovery in similar cases challenging administrative actions. 

“The allegations set forth by petitioners-plaintiffs have raised significant concern to this court regarding the lawfulness of the Board’s procedure in determining [the rent freeze vote],” Lantry said in his order. “The court acknowledges that discovery in a special proceeding is rare. It is also rare (in fact, it is unprecedented) for a candidate for Mayor of New York City to guarantee that the Board, an entity that the parties concede is independent from the Mayor’s Office, will freeze the rent upon his election to office.”

Lantry cited the specific campaign ad in which Mamdani guaranteed a rent freeze for every year he is in office while running the New York City Marathon, along with Christina Smyth’s 11th-hour resignation from the RGB in protest on the eve of the vote.

“Lastly, it is unprecedented for the Board to vote, for the first time in history, to freeze the rent for both one-year and two-year leases,” Lantry said in his order. 

He also noted that while he is aware that landlords and tenants alike have been awaiting a decision since the lawsuit was first filed in late July, emphasizing that discovery is necessary for the court to determine whether the vote to freeze the rent was unduly influenced by the mayor’s office or otherwise in violation of the law. 

The “narrowly tailored” discovery contains fewer potential materials than what Mastro and other plaintiffs requested, the judge noted in his order, citing the relevance of certain communications.

“We are gratified by the judge’s decision, and this targeted discovery goes to the heart of our position that this was a sham process with a predetermined outcome, and communications between the Mayor’s Office and the Rent Guidelines Board, which all parties admitted is supposed to be independent of the Mayor’s Office, should show that,” Mastro said in a statement.

Lantry, former chairman of the Staten Island Republican Party, took over the case after it was transferred to Manhattan from Staten Island. He reserved his decision on whether to overturn the rent freeze earlier this month at oral arguments, allowing landlord and tenant parties to intervene on their respective sides of the case. If the judge does grant the petition to send the rent freeze back to the board, the city’s legal team led by Steven Banks is likely to appeal.

What we’re thinking about: Do you think Judge Lantry is showing his hand by granting discovery in this case? Let me know your predictions at ben.miller@therealdeal.com. 

A thing we’ve learned: It’s Climate Week in New York. In 2023 a Dartmouth study suggested that climate change, notwithstanding its myriad disastrous effects, is also leading to more home runs in Major League Baseball by creating lower air density. That’s the only explanation for the Mets 12-2 win over the Yankees last weekend, promptly followed by a 0-2 Yankees shutout to end the subway series.

Elsewhere…

 — Knicks fans who believed a long-awaited championship would finally come last year placed more than $1 billion in bets during the two weeks of the NBA Finals in June, Gothamist reports. During that same time period, nine mobile sportsbooks operating in New York lost a combined $14 million, according to a new report by state Comptroller Thomas DiNapoli. The glorious week the Knicks won marks the only time the mobile sportsbooks reported a net loss in New York since launching four years ago. 

 — An advocacy committee backed by Waymo launched today, Politico reports. A Better Road Forward counts New York Apartment Association CEO Kenny Burgos and former City Council Speaker Christine Quinn among its board members and will run television ads to appeal directly to voters, attempting to boost support for self-driving cars after Gov. Kathy Hochul pulled a proposal to expand autonomous vehicles into New York City. 

 — A NYCHA resident who was relocated from Gowanus Houses during a multimillion-dollar renovation says many of her personal belongings went missing in the move, including important documents and a box containing her mother’s ashes. The housing authority had agreed to pay for tenants’ moving costs and storage. While Katrina Gorman appreciates the upgrades to her unit, she is still pushing for answers from NYCHA, moving company ZeroMax and Mega Technico Joint Venture, the entity in charge of the renovations, according to The City Reporter.

Closing time

Residential: The most expensive residential sale recorded Wednesday was $10.4 million for a 4,514-square-foot condominium at 17 East 12th Street in Greenwich Village. Susan Green and Erin Stabb with Compass had the listing. The property last sold for $7.6 million in May 2017. 

Commercial: The most expensive commercial transaction was $49 million for a 113,719-square-foot logistics property at 153-44 South Conduit Avenue in Jamaica. Wildflower Limited sold the property to Prologis. 

New to the Market: The highest price for a residential property hitting the market was $12.75 million for a 5,200-square-foot condominium at 145 Hudson Street in Tribeca. Matthew W. Slosar with Douglas Elliman has the listing. 

Breaking Ground: The largest new building permit filed was for a proposed 68,265-square-foot, 77-unit project at 1350 Inwood Avenue in Highbridge. Joseph Frankl filed the permit on behalf of Rubin Equities.

— Matthew Elo