I'm not sure why you're downvoted. Many cities have a housing department and they can write and update regulations and requirements (within the scope of their legislatively-granted authority) that have the force of law. Things get set up this way so legislative bodies don't have to write and vote on every detail of every rule.

It's possible someone might challenge a rule if they think it oversteps the authority granted.

yeah me neither, maybe it was using the phrase good faith.

I suppose landlords if they think it is very beneficial to use AI to get people to pay more for apartments might fight back, probably free speech or some such thing, some landlords might just do it because they dislike Mamdani.

Anyway I'm not sure if they would need to update much, just issue statement "using AI to create an image that cannot actually happen in reality for an apartment by.. (long winded description follows) is obviously deceptive and falls under current regulations and laws and we will be prosecuting it as such" - this would of course be determined by how things work in NY specifically.