A lawsuit challenging New York City Mayor Zohran Mamdani's decision to freeze rents for approximately 1 million rent-stabilized units has been moved from Staten Island to Manhattan Supreme Court. The decision, issued by Staten Island Judge Ralph Porzio, stems from a technicality regarding the proper venue for the legal challenge.
A coalition of city landlords filed the lawsuit a month ago, arguing that the two-year rent freeze, decided by the Rent Guidelines Board in June, was an "unlawful" "sham." They chose Staten Island Supreme Court for the filing.
City lawyers, however, argued that the suit, known as an Article 78, should have been filed in Manhattan, as that is where the official government decision was made. Corporation counsel Steven Banks stated that adhering to procedural rules was the core of their argument, not the judge's ability to hear the case.
Former First Deputy Mayor Randy Mastro, representing the landlords, contended that Staten Island was a valid venue due to the decision's impact on the borough's 8,200 rent-stabilized units. He argued that Staten Island is just as affected by the rent freeze as any other borough.
Judge Porzio ultimately ruled that the venue motion had to be decided first. He explained that the rules dictate the lawsuit should be filed where the proceedings were initiated, not solely based on where the impact is felt. "The material event is not where the impact will be felt, but … where the proceedings were brought," Porzio stated in his order. He noted that while the rent regulations apply in Richmond County (Staten Island), neither the decision nor the process to reach it had a "material connection" to the borough.
While this ruling is a setback for Mastro and his clients, the case will now proceed in Manhattan. A new date for legal arguments on the merits of the challenge will be set soon. Chantella Mitchell, chair of the Rent Guidelines Board, had previously spoken at the vote that resulted in the rent freeze.