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Jan 13, 2026

Judge Throws Wrench In Mamdani’s Plan to Take Over NYC Housing-lllllll

A federal bankruptcy judge on Thursday blocked New York City Mayor Zohran Mamdani’s attempt to intervene in the sale of thousands of rent-stabilized apartments. The Mamdani administration sought to delay the transaction after tenants complained that the current owner, Pinnacle Group, had failed to properly maintain the properties.

 

 

 

 

 

 

 

 

Tenants also raised concerns that the prospective buyer, Summit Properties USA, could continue similar practices.

City officials argued they had standing to intervene because New York City is a creditor of Pinnacle, which owes more than $12 million in unpaid fines, according to Gothamist.

Bankruptcy Judge David Jones rejected the city’s request, preventing the administration from taking part in the sale and marking an early setback for Mayor Mamdani’s efforts to influence housing policy through the courts, Fox Business Network added.

Jones could approve the sale to Summit as soon as this Thursday, but Mamdani’s administration says they are still looking at options.

“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,” Leila Bozorg, the city’s deputy mayor for housing, told the outlet.

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