Mayor Zohran Mamdani's administration failed in its bid to slow the sale of 5,100 rent-stabilized apartments owned by Pinnacle Group, a real estate firm that declared bankruptcy last year. The city's efforts came just hours after Mamdani took office, with the Mayor instructing his law department to intervene in the looming bankruptcy sale.
The Union of Pinnacle Tenants had organized to challenge the sale and find an alternative buyer, fearing that Summit Properties USA would perpetuate the same practices as Pinnacle, including neglecting maintenance and failing to pay electrical bills. The city's housing agency is owed around $12.7 million by Pinnacle in unpaid fines.
In a court ruling on Thursday, federal bankruptcy judge David Jones refused to grant Mamdani's administration a reprieve, dealing a blow to the Mayor's efforts to steer thousands of apartments towards what he sees as a more responsible owner. The judge's decision complicates the tenants' mission and delivers an early setback for Mamdani.
The sale of the 5,100 rent-stabilized apartments has become a flashpoint in a larger debate over housing policy in New York City. Pinnacle purchased many of the properties decades ago and employed a business model that raised rents and deregulated apartments to pay lenders and increase revenue. The company's tactics to evict tenants and increase rents on vacant apartments received scrutiny from state and city prosecutors, including the Manhattan district attorney's office.
Mamdani campaigned on aggressively penalizing property owners who fail to maintain their apartment buildings, and on freezing rents for tenants in rent-stabilized apartments. However, his administration faces intense scrutiny over its handling of housing issues, with one close adviser facing criticism over years-old social media posts.
The Union of Pinnacle Tenants had organized to challenge the sale and find an alternative buyer, fearing that Summit Properties USA would perpetuate the same practices as Pinnacle, including neglecting maintenance and failing to pay electrical bills. The city's housing agency is owed around $12.7 million by Pinnacle in unpaid fines.
In a court ruling on Thursday, federal bankruptcy judge David Jones refused to grant Mamdani's administration a reprieve, dealing a blow to the Mayor's efforts to steer thousands of apartments towards what he sees as a more responsible owner. The judge's decision complicates the tenants' mission and delivers an early setback for Mamdani.
The sale of the 5,100 rent-stabilized apartments has become a flashpoint in a larger debate over housing policy in New York City. Pinnacle purchased many of the properties decades ago and employed a business model that raised rents and deregulated apartments to pay lenders and increase revenue. The company's tactics to evict tenants and increase rents on vacant apartments received scrutiny from state and city prosecutors, including the Manhattan district attorney's office.
Mamdani campaigned on aggressively penalizing property owners who fail to maintain their apartment buildings, and on freezing rents for tenants in rent-stabilized apartments. However, his administration faces intense scrutiny over its handling of housing issues, with one close adviser facing criticism over years-old social media posts.
this is a big problem... Mamdani's all talk, no action, i mean what's the point of having a law department if they're not gonna back it up? 5,100 apartments on the line and he can't even slow down the sale... that's just crazy 
. And what's with the timing, hours after he takes office, already getting blocked by the court... seems like he was just trying to feel good about himself rather than actually doing some real work 
.
I feel like the mayor thought he could just swoop in and save those apartments but it looks like he underestimated the situation 
The fact that the city's housing agency is owed $12.7 million by Pinnacle is crazy, like how are they going to pay back all those fines? 
And the tenants were right to be worried about Summit Properties USA too, I mean we've seen what happens when a new owner comes in and raises the rent 
! Can't believe the mayor's admin failed to block the sale of those apartments 
. I mean, they came in just hours after taking office and thought they could just swoop in and save the day? 
It's like they didn't do their due diligence on this one. And now it's going to be a nightmare for all those tenants who are worried about being pushed out by some sketchy landlord 
Did they not do their due diligence on the company before letting them take over these apartments? It's all so messed up. 
It's like, what about the tenants who just want a safe and affordable place to live? I mean, Mayor Mamdani's trying to do something good here, but the city's efforts feel kinda half-baked 
. And now that the bankruptcy judge said no to their request for a reprieve... 
It's got me thinking about accountability and the fact that sometimes, no matter how hard you try, there's still gonna be people who are more interested in lining their own pockets than doing what's right.
. Like, Mayor Mamdani was already under pressure for the whole rent stabilization thing and now this? It's like he couldn't even get a reprieve from a federal judge lol 
. But seriously, can you blame the tenants tho? They're worried about getting screwed by another greedy property owner 
. Mamdani needs to step up his game and find a way to hold these owners accountable 
.
. And what really gets me is that the city's housing agency owes them $12.7 million in unpaid fines... like, isn't that a pretty big incentive to try and screw over the tenants? 
. I hope the tenants are able to find a way to stop this sale and get some real support from their government 
.
. I remember when he first announced his candidacy, I was all about him – he seemed so passionate and genuine about making a difference in NYC 
. But now, with this court ruling and all these scandals brewing... 
I'm not sure if I can trust him to get it right 
. My bae took me on an amazing trip to the Hamptons, and we stayed in this stunning Airbnb with a fire pit and everything 
... anyway, back to Mayor Mamdani's housing woes 
!
️ check out this link for more info on how Pinnacle Group declared bankruptcy last year: 
. We should be supporting them, not giving up hope 
.
... it's just not right that they're being sold off to a company like Summit Properties USA which has already shown problematic practices with Pinnacle Group 
. The Union of Pinnacle Tenants was really vocal about their concerns and I wish the city had listened more to them 
.