State’s Top Housing Official Warns Tenants of Internet Scam

ALBANY, NY (06/25/2007)(readMedia)-- Deborah VanAmerongen, commissioner of the State Division of Housing and Community Renewal (DHCR) warned tenants to beware of internet scammers who are selling information on affordable housing that is readily available – for free – on the DHCR website (http://www.dhcr.state.ny.us).

“They are seeking to profit from the shortage of affordable housing in New York by suggesting that the information they provide is virtually impossible to find elsewhere,” VanAmerongen said. “The truth is that all the information they offer, and much, much more, can be easily obtained by calling DHCR or visiting our website.”

The website for JGL Enterprises promises visitors: “You could easily be living in a brand new luxury building for as little as $398/month for a studio and less than $700/month for a 3 bedroom apartment.”

VanAmerongen said “The site clearly seeks to exploit the hopes and dreams of New Yorkers who have seen rental costs rise dramatically in recent years.”

The scammers behind the website are offering two publications for a $25 charge -- a “Directory of Affordable Housing” and a “Rent Overcharge Guide”, which purports to inform tenants if they are being illegally overcharged by their landlords. However, both publications are nothing more than compilations of notices, forms and guides from the DHCR and other government websites. In fact, the agencies’ logos and letterheads remain on the documents.

VanAmerongen said a similar internet scam was uncovered earlier this year, in which public information about Section 8 housing – also available for free on the DHCR website -- was being sold to unsuspecting tenants.

Perhaps the most outrageous aspect of the JGL Enterprise scam is that they acknowledge lifting the info from government websites. The introduction to the “Rent Overcharge Guide” informs readers that “most of the information provided here is available at” the DHCR website. However, consumers receive that notification only after they've paid the $25 fee.

The guide also proclaims that the DHCR is “your best friend when dealing with a rent overcharge situation.”

VanAmerongen said “At least they got that right. New York State is a national leader in protecting the rights of tenants, and any tenant who believes they are being overcharged will find all the information they need – for free -- by visiting our website or calling the DHCR toll-free help line at 866-275-3427. We are constantly upgrading our site and updating the information available in order to better serve our clients.”

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