Former FTC Chair Lina Khan Tapped for NYC Economic Post as Landlords Sue Over Rent Freeze

New York City Mayor Zohran Mamdani's administration on Wednesday appointed former Federal Trade Commission (FTC) Chair Lina Khan to a key economic post, on the same day a group of landlords filed a lawsuit to block a city-wide rent freeze the mayor had championed.

Khan to Lead Economic Development

Lina Khan was named board chair of the New York City Economic Development Corporation (NYCEDC), a nonprofit that serves as the city’s primary agency for promoting economic growth. The administration also named Anthony Shorris, a partner at McKinsey & Company and a veteran city official, as the corporation's president and CEO, according to a statement from the mayor's office.

Khan is a well-known figure in regulatory circles, having served as FTC chair under the Biden administration. During her tenure, she pursued an aggressive antitrust agenda, challenging numerous corporate mergers and aiming to address the market power of large corporations. She is currently an associate professor of law at Columbia Law School.

Landlords Challenge Rent Freeze

Separately, a group of landlords filed a lawsuit against the New York City Rent Guidelines Board, seeking to overturn a recent decision to freeze rents. The lawsuit alleges that Mayor Mamdani improperly influenced the board's decision by appointing members who would support his policy goals without adequately considering rising property costs.

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In late June, the board voted 7-1 to set rent increases at zero for both one-year and two-year leases on roughly 1 million rent-regulated apartments, effective from October. The move fulfilled a central campaign promise from Mamdani, a democratic socialist who took office in January and appointed six of the board's nine members.

Market and Political Context

Landlord groups argue the freeze will make it difficult for property owners to maintain their buildings and, in some cases, cover mortgage payments. They contend their operational costs have continued to rise despite the freeze.

The mayor's office stated that the Rent Guidelines Board is an independent body and that it is confident the board properly evaluated all relevant data before its vote. The administration said it is prepared to defend the board's decision in court.