A federal judge has temporarily blocked an effort by New York City Mayor Zohran Mamdani to halt the bankruptcy sale of more than 5,000 rent-subsidized apartments, dealing an early setback to the new administration’s housing agenda.
U.S. Bankruptcy Judge David Jones ruled that the city cannot intervene in the ongoing sale of properties owned by Pinnacle Group, a major landlord that filed for bankruptcy in May after defaulting on $560 million in loans. City officials say Pinnacle also owes roughly $12.7 million in unpaid housing code fines. Mamdani had directed the city’s Law Department to challenge the sale, arguing it could worsen housing instability for tenants living in subsidized units. The judge rejected the request, allowing the auction process to continue.
Pinnacle, owned by billionaire Joel Wiener, controls more than 140 buildings and about 9,000 apartments across New York City. Court filings show Summit Real Estate Holdings has offered $450 million to acquire roughly 90 of the properties.City lawyers warned the buyer may lack the financial strength to properly maintain the buildings. Tenant advocates say conditions in some properties have already deteriorated, raising concerns about future repairs, rent levels, and oversight under new ownership.
