Division of Housing and Community Renewal
Processing of Major Capital Improvement Rent Increase Applications 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. We reviewed the process used by the Division in reviewing applications for such rent increases. Our review of selected applications identified instances in which the Division approved rent increases without adequately verifying the work performed or the costs incurred. We also identified instances in which the Division did not follow up on tenant complaints relating to prospective rent increases before granting approval for the increases. We recommend that a number of improvements be made in the Division's procedures relating to such rent increases.
For a complete copy of Report 98-S-79 click here.
For a copy of the 90-day response click here.