❓WHAT HAPPENED: New York City Mayor Zohran Mamdani (D) proposed a 9.5 percent property tax hike in his $127-billion preliminary budget to close a projected $5.4-billion budget gap.
👤WHO WAS INVOLVED: Zohran Mamdani, Governor Kathy Hochul (D), the New York Apartment Association (NYAA), and the City Council.
📍WHEN & WHERE: The budget proposal was unveiled this week in New York City, with implementation aimed for the next fiscal year starting July 1.
💬KEY QUOTE: “Now he is proposing an across the board tax hike that will drive thousands of rent-stabilized buildings into further bankruptcy.” – Kenny Burgos, CEO of the New York Apartment Association.
🎯IMPACT: Landlords warn the proposal could bankrupt rent-stabilized properties and harm affordable housing.
Landlords across New York City are sharply criticizing Zohran Mamdani’s proposed 9.5 percent property tax increase, part of his $127 billion preliminary budget aimed at closing a projected $5.4 billion deficit over the next two fiscal years. Opponents warn the plan could further strain rent-stabilized housing and small property owners.
Kenny Burgos, CEO of the New York Apartment Association, said the proposal contradicts Mamdani’s campaign promises. “Mayor Mamdani promised that he would fight for property tax reform to help overtaxed apartment buildings when he was on the campaign trail,” Burgos said in a statement. “Now he is proposing an across the board tax hike that will drive thousands of rent-stabilized buildings into further bankruptcy,” he added.
The budget, which takes effect in July, outlines two options to address the shortfall. Mamdani has expressed support for raising income taxes on those earning more than $1 million annually and increasing corporate taxes. However, because such changes would require state approval, and Governor Kathy Hochul (D) has voiced opposition to new taxes on high earners, the mayor is considering raising property taxes instead, a move the city can enact on its own.
If approved, the property tax rate would rise from 12.28 percent to 13.45 percent, generating an estimated $3.7 billion per year. The Citizens Budget Commission estimates the increase would cost the average owner of a one-, two-, or three-family home about $700 annually.
Ann Korchak, board president of the Small Property Owners of New York, condemned the plan. “The mayor has declared war on thousands of immigrant property owners, most of them multigenerational families, who have their entire life’s savings invested in their small buildings,” she said.
Hochul questioned whether the tax hike is necessary, stating, “I don’t know that that’s necessary, but let’s find out what is really necessary to close that gap.”
Mamdani’s housing agenda has drawn controversy beyond the budget fight. In recent weeks, critics have pointed to reporting highlighting his administration’s rental policy hearings that have allegedly restricted New York City public housing tenants from criticizing city officials.
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