Bankruptcy judge David Jones on Thursday, January, 15, 2026 blocked New York City mayor Zohran Mamdani's attempt to intervene in the sale of thousands of rent stabilized apartment buildings, making an early setback for the new mayor's housing agenda.
Mamdani's administration had sought to delay the sake after tenants complained that the current owner, Pinnacle Group, failed to properly maintain the properties and raises concerns that the prospective buyer, Summit Properties USA could continue similar practices.
City officials argued that New York City had standing to intervene because it is a creditor of Pinnacle, which owes the city more than $12 million in unpaid fines, according to Gothamist.
However, Judge David Jones rejected the city's argument, preventing the administration from participating in the case.
Leila Bozorg the city's deputy mayor for housing, said the city would continue pressing for compliance for housing regulations.
"We will continue to fight to ensure any owner of this portfolio makes necessary repairs to bring the buildings up to code and respects the rent stabilization regulations" Bozorg said.
The ruling comes amid broader scrutiny of Mamdani's housing agenda.
