Short answer: The rent freeze is still in effect. Six building ownership companies filed a court petition on July 22, 2026 asking a judge to void it, but filing a petition does not suspend the freeze. If you sign a rent-stabilized renewal this fall, you sign at the frozen rate. The city has been ordered to file its defense in September, before the freeze period begins on October 1.
What happened
On June 25, 2026, the New York City Rent Guidelines Board voted to freeze rents on renewal leases for rent-stabilized apartments. The freeze covers leases beginning October 1, 2026 through September 30, 2027, and applies to both one-year and two-year renewals — the first time a freeze has extended to two-year leases.
On July 22, six building ownership companies filed an Article 78 petition in State Supreme Court in Richmond County (Staten Island) asking the court to annul the freeze and send the question back to the Board for a rent increase. Article 78 is the procedure New York uses to challenge decisions by state and city agencies. The petitioners are represented by attorney Randy Mastro. Court filings identify entities associated with owners Michael Fazio, Violet Zharku, and Sophia Hepheastou.
The judge has directed the city to present its defense in September.
Timeline
| Date | Event |
|---|---|
| June 25, 2026 | Rent Guidelines Board votes to freeze renewal rents |
| July 22, 2026 | Six building ownership companies file an Article 78 petition |
| September 2026 | City's response to the petition is due |
| October 1, 2026 | Freeze period begins for renewal leases |
| September 30, 2027 | Freeze period ends |
Does this affect your rent right now?
No. A pending Article 78 petition does not pause the decision it challenges unless a court separately orders a stay, and no stay has been reported in this case.
Practically, this means:
- Your renewal offer should reflect the frozen rate. If it doesn't, that is an issue with your landlord, not with the lawsuit.
- The pending lawsuit does not change the renewal process or the terms set by the published RGB order.
- Keep the renewal offer and the signed lease. If the legal picture changes later, the paper trail is what protects you.
What the landlords argue
The lawsuit says the Board got to the wrong answer for two reasons: how it ran the process, and what it did with the numbers.
On process, the filing argues the outcome was settled before the hearings took place, pointing to how the Board was assembled. Bloomberg reported the petition contends the decision was "arbitrary and capricious" and that appointees were predisposed toward a freeze.
On economics, the petition argues owner costs were disregarded, citing the Board's own research showing the price index for operating costs in rent-stabilized buildings rose 5.3 percent over the past year.
The petition also leans on the resignation of Christina Smyth, one of two members representing owners on the nine-member Board, who stepped down on the morning of the vote. In her resignation statement she wrote that the Board "starts with an answer and vibe codes its way backward."
What the other side says
The mayor's office has consistently described the Board as an independent body that reaches its own conclusions. A Board representative declined to comment on the petition.
On the economics, tenant advocates point to a different Board dataset: net operating income at rent-stabilized buildings rose about 6 percent. That figure excludes debt service and major capital expenditures, which is why owners and tenant groups can both cite official Board research and reach opposite conclusions. Both numbers are real. They measure different things.
Notably, not every landlord group is behind the suit. The head of the Gotham Housing Alliance told the Amsterdam News his organization would not join, calling litigation costly and slow, and questioned whether any judge would realistically order tenants to repay two years of back rent after the fact. His summary: "A lawsuit is a loss."
This has been tried before
The Board froze rents three times under Mayor Bill de Blasio. In 2016 the Rent Stabilization Association filed its own Article 78 petition, arguing the Board acted improperly by weighing what tenants could afford. State Supreme Court Justice Debra James dismissed it in March 2017, finding that considering tenants' financial circumstances was a long-accepted and proper part of the Board's job — "The board should consider tenants' economic situations."
The current petition is framed to get around that ruling. Mastro's position is that the 2017 case asked whether the Board could consider affordability at all, while this case argues the Board considered it arbitrarily, to the exclusion of other required factors — a narrower claim, and one aimed at the record rather than the policy.
Article 78 review focuses on whether the agency acted within the law and adequately supported its decision in the administrative record.
What to do this month
- Confirm your apartment is actually rent-stabilized. Many tenants believe they are and aren't, and the reverse is more common than people expect. Look up your building
- Request your DHCR rent history. It is free, it takes minutes to request, and it is the single document that settles most rent disputes. How to request your DHCR rent history
- Check the effective date on your renewal offer. The freeze applies to leases beginning on or after October 1, 2026. A renewal starting in September falls under the prior guidelines. The RGB's official orders
- Save everything. Renewal offer, signed lease, any correspondence about the rate.
Does the freeze apply to your renewal?
| Renewal lease begins | Freeze applies? |
|---|---|
| September 2026 | No — prior guidelines apply |
| October 2026 | Yes |
| January 2027 | Yes |
| September 2027 | Yes |
| October 2027 | Depends on the next RGB order |
Frequently asked questions
Is my rent frozen right now? If your rent-stabilized renewal lease begins between October 1, 2026 and September 30, 2027, the guideline increase is zero. The pending lawsuit does not change that.
Could I be forced to pay back rent if the landlords win? No court has ruled on this and no one can answer it with certainty today. The petition, as filed, does not request that — the petitioners ask the court to send the matter back to the Board for a new increase determination, not to bill tenants retroactively.
When will this be decided? The city's response is due in September 2026. Article 78 cases can take months, and any decision can be appealed.
Does this apply to market-rate apartments? No. Rent Guidelines Board orders apply only to rent-stabilized units.
Does it apply to a new lease, or only renewals? Board guidelines set the allowable increase on renewal leases for stabilized units.
How do I know if my building has rent-stabilized units? Look up the address. Registration data indicates whether a building has registered stabilized units, though the status of an individual apartment is confirmed by your DHCR rent history.
What to watch next
The next public milestone is the city's response, due in September. Unless a court issues an order changing the status quo, the rent freeze remains in effect for renewal leases beginning October 1, 2026. There is no daily development to track here.
