New York City Mayor Zohran Mamdani is expected to announce on Tuesday that some distressed landlords will be exempt from his proposed rent freeze, according to a report by The Wall Street Journal.
The report said eligible owners of certain rent-stabilized apartments would be allowed to impose a one-time rent increase on vacant units, even if a broader rent freeze is approved later this year.
The increases would reportedly be decided on a case-by-case basis and could amount to hundreds of dollars per month for some units.
The exemption would apply to landlords of certain city-financed and city-regulated affordable housing units, many of whom have argued that rising costs and debt burdens have made the proposed rent freeze financially difficult.
"The reality is, they will all remain affordable," Dina Levy, commissioner of the city's Housing Preservation and Development Department, told The Wall Street Journal.
The report said roughly 300,000 apartments financed through city housing agencies could potentially qualify for the program.
Mamdani's office did not immediately respond to Benzinga's request for comment.
Housing Push
The broader plan also includes easier access to financing for property improvements, tax exemptions, housing-code compliance support and a proposed $5 million loan program aimed at helping landlords recover unpaid rent and avoid evictions.
Mamdani campaigned heavily on affordability and previously pledged to freeze rents on roughly one million rent-regulated apartments across New York City.
That proposal has drawn criticism from some landlords and investors, who argue that rising insurance, utility and financing costs are already pressuring building owners.
Earlier this month, billionaire investor Ken Griffin criticized Mamdani's broader tax policies and warned New York was becoming less welcoming to businesses and wealthy investors.
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In February, Mamdani proposed a possible 9.5% property tax increase as a "last resort" option to help close New York City's budget gap if broader wealth-tax efforts stalled.
