New York City’s Democratic socialist Mayor Zohran Mamdani pushed ahead with his promised rent freeze on Thursday — but that could just be the setup for a far more dramatic move. Mamdani’s new rent freeze could be setting landlords up to fail — and creating a stash of new “city” properties on which to build. In May, Mamdani alluded to resurrecting the controversial Third Party Transfer (TPT) program, which would allow the city to effectively confiscate private property under certain conditions. “For buildings that have suffered chronic neglect, we will work to transfer ownership to responsible stewards.” If apartments are seized, Mamdani said they could be transferred to community land trusts, non-profits, or “even the tenants themselves.” NOW: Mamdani says his admin will transfer ownership from bad landlords to non-profits. “For buildings that have suffered chronic neglect, we will work to transfer ownership to responsible stewards. Stewards that include community land trusts, non-profits, or even the tenants… pic.twitter.com/YHhzGWPgWh — Brecca Stoll (@breccastoll) May 26, 2026 Under New York City’s controversial TPT program, the city can foreclose on buildings whose owners owe back property taxes, water charges, or have violated New York City’s housing code.  The TPT program was paused in 2019 after backlash from property-rights advocates and elected officials, but the New York City Council is currently considering legislation that could restart the program. In addition to rent freezes, Mamdani promised to “crack down” on landlords who were not managing maintenance requests or had other tenant complaints. “Expense items are not proportional to the income the properties generate,” landlord Lav Bauta told the New York Post. Bauta’s firm, Zion Equities, owns about 800 New York City rent-stabilized units and manages 4,000 apartments. “Rent-stabilized properties incur the same, or greater, expenses as their fair-market counterparts: insurance, wages, supplies, elevator service, utilities, etc. There is no support or control mechanism to cap expenses while incomes have been capped.” Former Mayor Eric Adams acknowledged these concerns during his tenure. “What we will never do is sell New Yorkers on an idea that would ultimately leave them in worsening housing conditions,” Adams said as mayor. “Rent may be on the rise, but so are deteriorating housing conditions — including inadequate heat and heating breakdowns, mice and rat problems, mold, and leaks — especially for New Yorkers in rent-stabilized housing.” Worsening housing conditions are expected to emerge as landlords incur higher costs due to inflation. Mamdani’s rent freeze was voted into effect on Thursday after the Rent Guidelines Board approved rent freezes for both one and two-year apartment leases. The board approved the measure in a 7-1 vote affecting all rent-stabilized apartments. About one million apartments are affected out of New York’s 2.32 million renter-occupied apartments. “It may be hot outside, but the rent is freezing,” said Mayor Zohran Mamdani. “This is a historic victory for New York City tenants. I’ll continue working to deliver a more affordable city by building and preserving affordable housing, lowering building operating costs like insurance and ensuring tenants know their rights.”  Before Mamdani’s 0% rent increase, landlords were able to raise rent by 3% for one-year lease renewals and 4.5% for two-year leases. Mamdani appointed a majority of the Rent Guidelines Board, which sets the annual rent adjustments for rent-stabilized apartments. Mamdani had previously said he would only appoint members to the board if they agreed with his “freeze the rent” vision.  Starting October 1, landlords of rent-stabilized apartments will not be able to make that choice for themselves. The freeze is in place for two years, but in an earlier interview, Mamdani signaled he would be interested in extending the freeze. “We need to freeze rents for rent-stabilized tenants for four years,” he told New York magazine before he became mayor.