DHCR has been criticized by tenant rights groups for its failure to monitor their own programs and massive delays in investigating cases of the illegal deregulation due to an extensive backlog.

This includes reviewing and approving rent increases, handling tenant complaints, investigating violations, ordering corrections, and imposing penalties on landlords who are found to be noncompliant.

[2][3][4] Beyond rent regulations, DHCR is also responsible for enforcing compliance with housing maintenance codes, mediates landlord-tenant disputes, and ensures landlords adhere to warrant of habitability requirements.

Tenants have reported numerous instances where landlords have illegally increased rents or failed to maintain their properties in good condition, yet faced minimal repercussions from DHCR.

The IG’s office began its review in response to numerous complaints from residents and others that pointed to systemic problems in DHCR’s oversight role.

Inspector General Hamann stated: ‘Rather than safeguarding the integrity of the program, DHCR, through its own shortcomings, allowed housing companies to flout rules regarding apartment allocation, financial reporting, and contracting.

The backlog of cases often results in delayed justice, where tenants continue to overpay rent or live in substandard conditions while waiting for DHCR to act.

The landlord had applied for deregulation in a timely manner, but the DHCR's slow processing resulted in a three-year delay before dismissal, leaving the case unresolved.

Critics argue that the inefficiencies in DHCR's operations and the continued delays in processing cases undermine trust in the agency's ability to protect tenants' rights effectively.

The ethical concerns are compounded by instances where landlords have engaged in fraudulent activities, such as unlawfully increasing rents or deregulating units without proper oversight.

These systemic issues have contributed to an environment where tenants feel vulnerable and unprotected, undermining the overall stability and affordability of housing in New York City.