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needs of the people. The people serving on local boards will have to live with the decisions they make, and there should be no fear that their decisions will not be entirely responsive to the needs of the people, particularly under the provisions of the committee amendment which require hearings, due notice thereof to affected parties, opportunity to be heard, and adequate standards for the board's guidance. Provision was made in the Housing and Rent Act of 1947, which became law on July 1, 1947, for the appointment of such local boards. There are 665 local rent boards now operating in 553 defense rental

areas.

The committee amendment would add a new subsection to section 204 of the Housing and Rent Act of 1947 denying the Housing Expediter any authority to prohibit the demand, collection, or retention of a security deposit in any rental agreement hereafter entered into, if such deposit is not in excess of 1 month's rent over the rent otherwise permitted to be collected in advance. This provision is in accord with normal business practices in certain areas.

The committee amendment does not include the broadening of the use of the injunction to make it applicable in the case of any violation of any provision of title II as provided in the Senate bill. Section 205 (a) of the Senate bill added certain new grounds for eviction, one of which would authorize the maintenance of an eviction action or proceeding where the landlord seeks in good faith to recover possession of housing accommodations for the immediate and personal use and occupancy as housing accommodations by his father, mother, grandfather, grandmother, son, or daughter. In lieu of listing the specific relatives of the landlord, as is done in the Senate bill, the committee amendment substitutes therefor the words "by a member or members of his immediate family." Several cases were brought to the attention of the committee which would merit eviction for the purpose set forth in the Senate bill but which would not qualify for eviction because the person for whose use recovery was desired was not specifically enumerated therein. One example of such a case was that of the father of a deceased veteran of World War II who desired to recover possession of an apartment owned by him for the immediate and personal use of the widow and children of his deceased son. As stated, several other cases were mentioned, and the committee feels that the broader language included in its amendment will more adequately cover the situation desired to be remedied.

Section 304 of the committee amendment would extend until April 1, 1949, the provisions of section 2 of Public Law 301, Eightieth Congress, approved July 31, 1947, relating to eviction of tenants from publicy operated housing accommodations.

In the main the provisions discussed up to this point in the report have concerned the differences between the Senate bill and the committee amendment. All of the provisions of the committee amendment are explained in the following section by section analysis.

SECTION BY SECTION EXPLANATION OF THE COMMITTEE AMENDMENT

SECTION 1

This section provides that the act may be cited as the "Housing and Rent Act of 1948."

H. Repts., 80-2, vol. 2- -22

TITLE I-AMENDMENTS TO TITLE I OF HOUSING AND RENT ACT OF 1947

SECTION 2

This section repeals subsection (b) of section 1 of the Housing and Rent Act of 1947. That subsection authorized the Housing Expediter, whenever he determined that there was a shortage, or that there was likely to be a shortage, of building materials, to establish by regulations or orders a system under which a person desiring to construct buildings or facilities to be used for amusement or recreational purposes would be required to obtain permits.

SECTION 3

This section amends section 4 of the Housing and Rent Act of 1947 by striking out "April 1, 1948" wherever such date appears and inserting in lieu thereof "April 1, 1949". The effect of this amendment is to extend for an additional year the provisions of such section 4 assuring to veterans of World War II and their families a preference or priority with respect to the purchase or rental of newly constructed housing accommodations.

TITLE II-MAXIMUM RENTS

SECTION 201

This section rewrites paragraphs (2) and (3) of section 202 (c) of the Housing and Rent Act of 1947, and also adds a new paragraph (4). Paragraph (2), which decontrolled motor courts and tourist homes, is changed so as to include trailers and trailer space. This ratifies what has already been done by regulation of the Housing Expediter.

Paragraph (3), which excepted from control, among other accommodations, housing not rented to others than the occupant's immediate family between February 1, 1945, and January 31, 1947, is changed so as to exclude from control any housing accommodation not so rented for any successive 24-month period during the period from February 1, 1945, to the date of enactment of the new law; except that the word "occupant" has been changed to "landlord," the latter term being deemed more accurate. Also excluded from control are housing accommodations the construction of which was completed on or after February 1, 1945, and prior to February 1, 1947, and which between the date of completion and June 30, 1947, both dates inclusive, at no time were rented other than to members of the immediate family of the landlord.

The new paragraph (4) would decontrol any housing accommodations leased temporarily by a State or a political subdivision of a State during the period between acquisition of the same for purpose of public improvement and the construction of the improvement.

SECTION 202

This section makes a number of amendments to section 204 of the Housing and Rent Act of 1947.

Subsection (a).-This subsection makes an amendment to continue the Housing Expediter and the Office of Housing Expediter until the close of March 31, 1919.

Subsection (b).-This subsection modifies the proviso contained in section 204 (b) of present law relating to the making of adjustments, by the Housing Expediter, in maximum rents. Under the present proviso, he is directed to make "such adjustments" as may be necessary to correct inequities or further to carry out the purposes and provisions of the title. The bill modifies the proviso so as to require the Housing Expediter to make such individual and general adjustments in maximum rents in any defense-rental area or any portion thereof, or with respect to any housing accommodations within any such area of any portion thereof, as may be necessary to remove hardships or to correct other inequities, or further to carry out the purposes and provisions of the title.

Subsection (b) also inserts in section 204 (b) two paragraphs, designated (2) and (3), which take the place of the present proviso under which authority was granted to tenants and landlords to enter into voluntary leases providing for rent increases of not more than 15 percent. Paragraph (2) deals with the case of landlords and tenants who have heretofore entered into such a lease. In such a case the housing accommodations are not to be subject to any maximum rent established under the title unless the lease is hereafter terminated or expires before March 31, 1949, in which case the maximum rent is to be not in excess of 15 percent over the maximum rent which (in the absence of a lease) would be in effect on the date of the enactment of this legislation. A proviso is included providing that the landlord and tenant (including a new tenant) may enter into a new voluntary lease subject to the conditions, specified in paragraph (3), applicable with respect to landlords and tenants who have not heretofore entered into a voluntary lease. Paragraph (3) authorizes landlords and tenants to enter into voluntary leases hereafter, at a rental agreed upon, but not in excess of 15 percent over the maximum rent which (in the absence of a lease) would be in effect on the date of enactment of this legislation. Such a lease, in order to be valid, must expire on or after December 31, 1949; and a true and duly executed copy thereof must be filed with the Housing Expediter within 15 days after the date of the execution thereof. It is provided that the housing accommcdations shall not thereafter be subject to any maximum rent established or maintained under the title unless the lease is terminated before March 31, 1949. If such a lease is so terminated, the maximum rent (unless a subsequent lease is entered into) shall be not in excess of 15 percent over the maximum rent which (in the absence of a lease) would be in effect on the date of the enactment of this legislation.

Subsection (c).-This subsection amends section 204 (c) of the Housing and Rent Act of 1947, relating to the duty of the Housing Expediter to remove any or all maximum rents in any defense-rental area if in his judgment the need for continuing maximum rents no longer exists due to sufficient construction of new housing accommodations or when the demand for rental housing accommodations has been otherwise reasonably met. By the amendment it is made clear that the Housing Expediter shall decontrol the whole or any portion of a defense-rental area, or any class of housing accommodations in any such area or portion thereof, when, in his judgment, the need no longer exists for continuing maximum rents in such area or portion thereof, or on such class of housing accommodations. Further, it is made the

duty of the Housing Expediter to make surveys, from time to time, with a view to carrying out the purpose of the subsection to decontroĺ housing accommodations at the earliest practicable time.

Subsection (d).-This subsection rewrites section 204 (e) of the Housing and Rent Act of 1947, relating to local boards and their powers.

Paragraph (1) is amended so as to provide that local boards shall consist of members who are citizens of the area affected and who, insofar as practicable, as a group are representative of the affected interests in the area. It is further amended to provide a method of appointment in those cases where a Governor fails to recommend to the Housing Expediter persons for appointment to local boards. It is also amended to provide that before a local board makes a recommendation in any individual adjustment case it must give notice to the parties and hold a hearing at the request of either party.

Subparagraphs (A) and (B) of paragraph (1) have been modified so that the standards to guide local boards, in making recommendations as to decontrol or general adjustments in maximum rents, will be the same as those provided in the title for the guidance of the Housing Expediter.

By amendments to paragraph (3), and by the addition of a new paragraph (4), powers greater than those under the existing law are given to local boards in the case of recommendations for decontrol or for general adjustments in maximum rents. Under present law a local board may make a recommendation to the Housing Expediter, but the Housing Expediter does not have to carry out the recommendation unless in his opinion it is "appropriately substantiated and in accordance with applicable law and regulations." By the new paragraph 4 it is provided that a recommendation on decontrol or as to a general rent adjustment shall be deemed to be appropriately substantiated and in accordance with applicable law and regulations (a) if a public hearing was held at which interested persons (including representatives of the State and of political subdivisions thereof) were given a reasonable opportunity to be heard, with right to be represented by counsel; (b) if appropriate notice of the hearing was given to the Governor and in a newspaper of general circulation in the area, and (c) if a copy of the board's recommendation was filed with the Governor within 5 days after transmittal of the recommendation to the Housing Expediter. If the recommendation is with respect to decontrol, the Housing Expediter must carry it out on the date recommended by the local board, but not before 60 days after receipt of the recommendation by the Housing Expediter; and it is provided that, during the 90-day period after decontrol is effected, tenants will have the protection of section 209 as though decontrol had not been effected. If the recommendation is with respect to general rent adjustment, the Housing Expediter must carry it out on the date recommended by the local board, but not before 30 days after the receipt of the recommendation by the Housing Expediter.

The present paragraph (4) of section 204 (e) is renumbered as paragraph (5), and modified so as to require the Housing Expediter to inform the Governors of the several States of the provisions of the subsection as amended.

Subsection (e).-This subsection amends section 204 (f) of the Housing and Rent Act of 1947, so as to continue title II (relating to control of maximum rents) until the close of March 31, 1949.

Subsection (f).--This subsection amends section 204 of the Housing and Rent Act of 1947 by adding a new subsection denying to the Housing Expediter the power to prohibit, in case of rental agreements hereafter entered into, the demand, collection, or retention of a security deposit, if the deposit does not exceed the rent for 1 month in addition to the otherwise authorized collection of rent in advance, and if the tenant is allowed to occupy the premises for a period covered by the security deposit without further payment of rent.

SECTION 203

This section makes several amendments to section 209 of the Housing and Rent Act of 1947, relating to evictions.

Subsection (a).-Paragraph (2) of section 209 (a) now permits an eviction action by a landlord seeking in good faith to recover possession of the housing accommodations for his immediate and personal use and occupancy. The bill amends this paragraph so as to permit such action where recovery of possession is for the immediate and personal use and occupancy by a member or members of the landlord's immediate family, or, in case of a landlord which is an organization exempt from taxation under section 101 (6) of the Internal Revenue Code, for immediate and personal use and occupancy as housing accommodations of members of its staff. The following proviso is also added:

Provided, That in the case of housing accommodations in a structure or premises owned or leased by a cooperative corporation or association no action or proceeding under this paragraph to recover possession of any such housing accommodations shall be maintained unless stock in the cooperative corporation or association has been purchased by persons who are then tenants of at least 65 per centum of the dwelling units in the structure or premises and are entitled by reason of stock ownership to proprietary leases of dwelling units in the structure or premises;

Subsection (b).-This subsection rewrites paragraph (4) of section 209 (a), relating to the right of a landlord to recover possession of housing accommodations for the purpose of altering, remodeling, or demolishing the same and replacing them with new construction. As modified, the paragraph will read:

(4) the landlord seeks in good faith to recover possession of such housing accommodations (A) for the immediate purpose of substantially altering or remodeling the same for continued use as housing accommodations, or for the immediate purpose of conversion into additional housing accommodations, and the altering, remodeling, or conversion cannot practically be done with the tenant in occupancy, and the landlord has obtained such approval as may be required by Federal, State, or local law for the alterations, remodeling, or any conversion planned, or (B) for the immediate purpose of demolishing such housing accommodations;

Subsection (c).-This subsection adds at the end of section 209 (a) a new paragraph permitting recovery of housing accommodations by a landlord who seeks in good faith to recover such housing accommodations for the immediate purpose of withdrawing them from the rental market, and it is provided that the housing accommodations shall not thereafter be offered for rent as such.

Subsection (d).-This subsection adds a new subsection at the end of section 209, as follows:

(c) No tenant shall be obliged to surrender possession of any housing accommodations pursuant to the provisions of paragraph (2), (3), (4), (5), or (6) of subsection (a) until the expiration of at least sixty days after written notice from the

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