Here is the column:
New York City Mayor Zohran Mamdani promised in his inaugural address to introduce New Yorkers to “the warmth of collectivism.” It now appears landlords will likely to be the first to feel the heat.
This week, Mamdani revealed an effort to transfer properties to tenants and non-profit groups. Mamdani announced that “through our new citywide campaign, Fix the City, we will focus on the worst landlords in New York City.” For landlords, it has been clear that the fix was in for some time.
Mamdani faced criticism for his appointment of Cea Weaver as the new director of the Office to Protect Tenants. She previously called for efforts to “impoverish the white middle-class” and called homeownership “racist” while demanding the seizure of private property.
Videos of Weaver echoed thread-worn socialist mantras that are the signature of the Mamdani Administration. “I think the reality is, that for centuries we’ve really treated property as an individualized good and not a collective good,” she said. “And transitioning to treating it as a collective good and towards a model of shared equity will require that we think about it differently and it will mean that families — especially white families, but some POC families who are homeowners as well — are going to have a different relationship to property than the one that we currently have.”
Weaver famously tweeted out her beliefs about private property, which are apparently widely shared in the Mamdani administration: “Private property, including and kind of ESPECIALLY homeownership is a weapon of White supremacy masquerading as ‘wealth building’ public policy.”
Other socialists on the national level have pursued the same policies to target landlords. In pushing national legislation, Rep. Ayanna Pressley (D-Mass.) joined fellow Democrats in calling for the passage of the HELP Act to “crack down” on some evictions and bar the use of evictions on credit reports. Pressley has declared that “evictions are an act of policy violence.”
Mamdani insists that he will be targeting “the worst landlords in New York City.” Yet, who constitutes the “worst landlords” could prove a relative notion to the ardent socialist. Mamdani proposes to transfer their properties to “responsible stewards,” including tenants and nonprofits.
In his 112-page report, Mamdani is again pushing to unleash his “Block by Block agenda for expanded rent controls, promising not to exempt landlords from Rent Guidelines Board limits. He and his allies have previously heralded Cuba and South Africa as models for policy changes.
Mamdani faces a considerable challenge in fulfilling his pledge to build 200,000 new affordable homes, with an additional 200,000 stabilized units over the next decade. There is reportedly only a 1.4 percent rental vacancy rate, with 100,000 New Yorkers sleeping in shelters each night.
Rent controls have generally been a disaster, reducing landlords’ ability to make improvements to their properties. They cannot recoup those investments due to rental limits as costs, particularly insurance, skyrocket.
The result is a type of planned failure. As landlords postpone improvements, they are often cited by the city in housing hearings. When those findings and fines increase, the landlords risk being declared “negligent” and subject to a transfer due to unpaid citations.
There is no argument that the worst landlords warrant the loss of their properties. But transferring such properties to tenants or non-profit groups is a new and costly form of subsidy. Ordinarily, delinquent properties can be sold on the free market to pay off outstanding debts. That allows neglected properties to be put to the most profitable use, which in turn generates more taxes and jobs for the city. If these properties go to non-profits or tenants, that can further reduce the city’s tax revenues.
More importantly, neither tenants nor nonprofit organizations have a proven track record of maintaining properties without substantial city subsidies. It is a mirage created by activists, hiding the true cost to taxpayers.
Mamdani continues to pursue policies that will suppress, not surge, new construction. His administration is requiring construction companies to pay a minimum of $40 per hour for city-funded affordable housing, which will further discourage investors.
He announced a $22 billion subsidy for housing costs, with 25 percent going to the New York City Housing Authority. These increased costs will likely grow as fixed budgetary items for the city.
Although it is economically dubious, it is politically dynamite. Much of Mamdani’s support comes from young people who have no memory of or experience with the failures of socialist policies in the twentieth century. He simply promises things like free buses or city-run grocery stores as if they can be supported by free money without addressing their true costs.
His grocery stores show the same economic sleight of hand. The city is planning to spend $30 million to create the first store — four times what such stores normally cost. On top of that cost, it was discovered that the city had already appropriated $25 million for the improvement of the site. That is $55 million for a site that will not go on the market for the highest bidders, but rather be operated by the city at a loss.
In my book Rage and the Republic, I discuss this trend in Western countries toward socialist policies. It is what I refer to as the “economic factionalism” that has been used in prior years by figures ranging from Huey Long to Bernie Sanders.
With the highest rental rates in the country (with median rents at $3,616) and a shortage of units, there is widespread support for building new affordable housing. But government rent controls, mandatory wage increases and property seizures will inhibit such efforts.
Mamdani’s free buses, city-run stores and this new housing effort will achieve one overriding goal: introducing socialism in New York City, “block by block.”
Jonathan Turley is a law professor and the New York Times best-selling author of “Rage and the Republic: The Unfinished Story of the American Revolution.”