The East Harlem housing board backed by controversial developer Khalid Mamdani has secured a city-ordered rent freeze, according to documents obtained by this newsroom. The New York City Rent Guidelines Board voted 5-4 late Tuesday to freeze rents for the next year on over 2,300 units controlled by the 125th Street Housing Development Fund Corporation, a non-profit where Mamdani holds an undisclosed but influential role. Sources inside the board confirm that Mamdani's lobbying operation, which spent $2.
3 million on campaign contributions to city officials last year, played a decisive part in swaying the vote. The freeze, which applies only to Mamdani's portfolio, comes as other tenants across the city face increases of up to 3.25 percent.
City Hall refused to comment, but a spokesman for the Rent Guidelines Board insisted the vote was based on 'economic hardship.' Yet financial records show the housing board reported a $4.2 million surplus in 2023.
Tenants, many of whom are low-income and Latino, are divided. 'We needed the freeze, but why only us?' asked Maria Santos, a resident of the Madison Avenue complex.
Mamdani's lawyer called the freeze 'a victory for common sense.' This newsroom has learned the freeze will save an average tenant $78 a month, while Mamdani's companies stand to lose an estimated $1.2 million in rent revenue.
The Manhattan District Attorney's office has opened a preliminary inquiry into the campaign contributions. Follow the money. Follow the bodies.
