Federal Judge Blocks NYC Bankruptcy Sale In Major Blow to Mamdani

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 socialist mayor’s housing agenda.

U.S. Bankruptcy Judge David Jones of the Southern District of New York recently 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.