Division of Housing and Community Renewal

Processing of Major Capital Improvement Rent Increase Applications (Follow-Up Review)

About one million privately owned rental units are subject to rent control regulations administered by the Division of Housing and Community Renewal. When major capital improvements are made to these units, the owners of the units may be entitled to a rent increase. In our prior audit report 98-S-79, we reviewed the process used by the Division in reviewing applications for such rent increases. We identified instances in which the Division approved rent increases without adequately verifying the work performed or the costs incurred, as well as instances in which the Division did not follow up on tenant complaints relating to prospective rent increases before granting approval for the increases. We recommended that certain improvements be made in the Divisionís procedures, and in our follow-up review, we found that most of these improvements had either been made or were in the process of being made.

For a complete copy of Report 2001-F-67 click here.