New York City Mayor Zohran Mamdani purged dozens of corporate leaders from the advisory board of a city-backed nonprofit organization this week, further putting the socialist leader at odds with the business elite.
The philanthropic fund, called the Mayor’s Fund to Advance New York City, has been a mainstay in New York City for over three decades. The fund used private donations to fund the city’s government initiatives across all five boroughs.
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Founded in 1994, the nonprofit organization raised $107 million to support the family members of rescue workers killed or injured in the terrorist attacks on Sept. 11, 2001. At the height of the COVID-19 pandemic in 2020, the group raised $54.5 million for an emergency relief fund that covered meals and personal protective equipment for healthcare workers.
Now, the mayor’s fund is facing an unprecedented shake-up.
“I commend you for your dedication and the benefit you have brought to our City as you conclude your tenure on the Mayor’s Fund Board of Advisors,” Mamdani wrote in a letter to the board members before letting them go.
Among those who served on the advisory board were Richard Born, owner of BD Hotels; Jeffrey Gural, chairman of GFP Real Estate; Alex Katz, senior managing director of government relations at Blackstone; Edward Skyler, head of enterprise services and public affairs at Citigroup; and James Whelan, president of the Real Estate Board of New York.
Whelan has been a vocal critic of Mamdani’s plan to freeze rent for nearly 1 million rent-stabilized apartments. The city’s Rent Guidelines Board approved the proposal in late June. The panel that approved his plan was almost entirely appointed by Mamdani.
The rent freeze is supposed to pause rent increases on both one-year and two-year leases between Oct. 1 and Sept. 30, 2027. This makes it easier for lower-income New Yorkers to afford housing, but it also burdens landlords who have to maintain their buildings.
Real estate is an issue that has driven a wedge between Mamdani and the city’s corporate leaders since he took office this year.
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The Mamdani administration intends to create a new advisory board that will eventually replace the fired board members.
“The creation of a new advisory board is an important next step in reimagining how philanthropy can augment, but not replace, public dollars and public goods, and we are eager to share more about our new board of advisors later this year,” said Dora Pekec, senior spokeswoman for Mamdani.
