Mamdani Suffers Double Blow To His Socialist Plans

New York City socialist Mayor Zohran Mamdani is having a bad week.

A federal judge has temporarily blocked Mayor Zohran Mamdani’s attempt to stop the bankruptcy sale of more than 5,000 rent-subsidized apartments across New York City, posing an early challenge to the newly sworn-in mayor’s housing reform agenda.

U.S. Bankruptcy Judge David Jones of the Southern District of New York ruled that the city could not intervene in the ongoing sale of properties owned by Pinnacle Group, one of the city’s largest landlords.

The company declared bankruptcy in May after defaulting on $560 million in loans, and the Mamdani administration has claimed it owes the city $12.7 million in unpaid housing code fines.

Mamdani, who took office last week, had directed the city’s Law Department to intervene, arguing the deal could worsen housing instability for thousands of tenants living in subsidized apartments.

But Judge Jones rejected the city’s motion, saying the bankruptcy auction must move forward.