Mayor Zohran Mamdani touring a unit in a Pinnacle Flatbush building last week. Credit: Michael Appleton/Mayoral Photography Office on Flickr
A federal bankruptcy judge has denied Mayor Zohran Mamdani’s bid to halt the sale of thousands of rent-stabilized apartments owned by a notorious landlord, a move aimed at preventing the buildings from falling into the hands of another negligent owner. On Monday, Mamdani asked the court to delay a bankruptcy auction scheduled for Thursday, arguing the city needed more time to evaluate a deal that would give ownership to Summit Properties USA. Despite the mayor’s claim that the city is a major creditor in the case—Pinnacle owes the city millions in unpaid fines—the judge rejected the request, likely ensuring Summit’s potential purchase of nearly 90 buildings, pending court approval at a January 15 hearing.
Just hours after taking office last week, Mamdani signed executive orders strengthening housing and tenant protections, choosing a Pinnacle-owned building in Flatbush as the site for the announcement. At the event, he also said the city would intervene in the company’s bankruptcy sale. Pinnacle has been responsible for more than 5,000 housing violations and 14,000 tenant complaints across more than 80 buildings citywide.
Tenants have long accused Pinnacle, which owned roughly 5,100 rent-stabilized apartments across dozens of properties, of neglect, saying the company allowed many buildings to fall into disrepair…