More Than 5,000 Rent-Stabilized NYC Apartments Face a Funding Crunch
New York City mayoral candidate Zohran Mamdani has vowed to freeze the rent on the city’s 2.5 million rent-stabilized tenants.
Photographer: Leonardo Munoz/AFP/Getty Images
Funding to maintain thousands of rent-stabilized apartments in New York City owned by landlord Joel Wiener is in limbo after a federal judge denied a request to tap income belonging to its major lender, Flagstar Bank.
Judge David S. Jones ruled Sunday that lawyers overseeing more than 5,000 apartments connected to Wiener’s Pinnacle Group couldn’t use rental income to cover operating costs because they didn’t provide enough proof that Flagstar’s financial interest was protected. The properties — facing foreclosure and saddled with more than $564 million in debt — were put into Chapter 11 bankruptcy in May.