A fight is on in Gotham’s courts after a judge issued a temporary restraining order on the pied-à-terre tax that found even the governor distancing herself from the mayor.
Last week, a lawsuit was filed against New York City and Mayor Zohran Mamdani (D) by three homeowners regarding the new surcharge for unoccupied second homes. Monday, Staten Island Supreme Court Justice Wayne Ozzi issued a ruling in their favor, temporarily blocking the tax rollout that was quickly bumped to a higher court.
Along with one Simon Hedley, New York City Councilman Frank Morano’s (R) wife, Rachel O’Brien, and his father, Carmine Morano, filed the suit against Mamdani and the New York City Department of Finance after 17,000 notices were reportedly sent warning of the impending bill barring the grant of an exemption request.
The lawsuit doesn’t challenge the tax; rather, it challenges the city for having “arbitrarily and capriciously foisted … the burden” of proof on residents as to whether or not they are subject to the tax imposed on homes valued over $5 million and condos or co-ops valued over $1 million that are deemed unoccupied second properties.
Though Ozzi’s order paused the rollout until at least an August 31 hearing on the suit, Mamdani spokesman Matt Rauschenbach promised an appeal that did in fact stay the order.
“We disagree with today’s ruling, but we are confident in both the pied-à-terre surcharge and the City’s ability to implement it fairly and effectively,” he told the New York Post. “This surcharge asks those who own second homes valued at $5 million or more to contribute their fair share to the city they benefit from.”
“The Law Department will appeal the ruling immediately which will stay the order, and the City will continue with the pied-à-terre’s implementation,” added Rauschenbach before The New York Times reported that the city’s filing “essentially blocked Justice Ozzi’s order from taking effect until a higher court weighs in.”
The ruling also addressed Mamdani’s doxxing of more than 900,000 taxpayers as the rollout included publication of addresses potentially eligible for the pied-à-terre tax.
Mamdani doxxes the homeowners he wants to target next https://t.co/hmnEJ5nD1O via @BIZPACReview
— BPR (@BIZPACReview) July 28, 2026
Offering his own reaction Monday, Morano posted to X, “The Court temporarily stopped the City from keeping the supplemental list online, acting on the mailed notices without first making the required individualized determination, and enforcing the deadlines on homeowners. I’ve said from day one: verify first.”
“I’m proud Rachel and my Dad were willing to stand up and fight City Hall, and Randy Mastro deserves tremendous credit for his legal work. But this isn’t over. We fully expect the City to keep fighting,” he added. “Government has to follow the law too. Now we keep going.”
3/3
I’m proud Rachel and my Dad were willing to stand up and fight City Hall, and Randy Mastro deserves tremendous credit for his legal work.
But this isn’t over. We fully expect the City to keep fighting.Government has to follow the law too. Now we keep going.
— Councilman Frank Morano (@CMFrankMorano) August 10, 2026
Mastro, the representation for the plaintiffs, previously served as a deputy mayor under then-New York City Mayor Eric Adams’ (D) administration. He reacted to Ozzi’s ruling, “We are very gratified by the judge’s decision which has vindicated the rights of hundreds of thousands of New York City homeowners who were subjected to a process they never should have been a part of in the first place.”
Meanwhile, New York Gov. Kathy Hochul (D) spoke with reporters while attending an event in the Bronx and insisted, “We’re not responsible for the rollout.”
“This is something that we talked to the city about in advance. It’s up to their city tax department,” she added. “We’ll encourage City Hall to try and streamline this.”
As the lawsuit was expected to be taken up by the appellate court quickly, a spokesperson for the governor went on record stating, “While this lawsuit about the administration of the tax is a matter for the city and the courts to work through, the Governor continues to believe that people who can afford a multimillion-dollar second home in New York City can afford to pay their fair share.”
Native of Brooklyn, NY, Kevin Haggerty is a graduate of Hunter College where he studied Cultural Anthropology and Geography. An avid reader and truth seeker, he currently resides in Texas with his wife and their dog and, when he isn't researching current events and their impacts, you'll find him spending time with friends and family or working on his next novel.
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