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HomeMy WebLinkAboutORD 1946-159 COUNTY OF HAWAII TERRITORY OF RAWAII ORDINANCE NO. 159 AN ORDINANCE TO REGULATE RENTS AND RENTAL CONDI- TIONS OF PROPERTY FOR PLACffi OF 'ABODE, CREATING A RENT' CONTROL COMMISSION, DEFINING ITS POWFR7S, DU- TIES ANID FUNCTIONS, AND PROVIDING PENALTIES FOR THE VIOLATION THEREOF'. Be It Ordained by the People of the County of Hawaii: SECTION 1. Deflnftions. As used in this Ordinance: (a) The term "administrator" means the administrator of rent control. tb) The term "board" means the Board of Supervisors of the County of Hawaii. (c) The term "commission" means the rent control commission. (d) The term housing accom- modations" means any ~bullding, structure or part thereof, or land appurten- ant thereto, or any other real or personal property rented or offered for rent for living or dwellnig pur- purposes 1n the County of Hawaii (including, but witlhovt limitation, houses, apartments, hotels, room- ing houses, boarding houses and other properties used for living or dwelling poses) together with all services supplies in connec- tion with the use or occu- pancy of such property. (e) The term "landlord" in- cludes an owner, lessoq sublessor or other person entitled to receive rent for the use or occupancy of any housing accommodations. Gf) The term "maximum-rent telling" means the maxi- mum rent which may be ' demanded or received for the use or occupancy of housing accommodations. (g9 Tha term "minimum-ser- vice standard" memis the minimum service which may be suppued with the renting or leasing of hous- ing accommoda~ions. (h) The term "person" includes one or more indivfduals, firms, partnerships, corpor- ations or associations and any agent, trustee, receiver, assignee or other repre- sentative thereof. (1) The term "rent" means the consideration, includ- ing any bonus, benefit or gratuity, demanded or re- received per day, week, month, year or other pe- riod of ttme, as the case may be, for the use or oc- cupancy of hausing accom- modations or the transfer of a lease for such accom- modations. (J) The term "services" in- cludes the furnishing of light, hot or cold water, telephone, furnishings, fur- niture, window shades, screens, awnings, and stor- age, kitchen, bath and laundry facilities and pri- vileges, maid service Jani- for service, yard service, removal of refuse, and the making of all repairs suit- able to the housing ac- commodations or necessitat- ed by ordinary wear and tear, and any other ordi- nary privilege connected with the use and occu- pancy of housing accom- modations. tk) The term "nuisance" means nuisance in the broadest sense of the word and includes any inJury, damage or waste to the property of the landlord. SECTION 2. Rent Control Com- mission. There is hereby created a rent control commission of five members, any three of whom are empowered to act, who shall be ap- pointed by the Chairman and Exe- cutive Officer with the approval of the Board of Supervisors, Yor a term of office co-existent with the term of the Chairman and Execu- tive Officer. Any vacancy shall be filled by appointment for the re- mainder of the unexpired term. The Chairman and Executive Offi- cer shall name one of the mem- bers to act as Chairman of the commission. A quorum shall con- sist of a majority of the members. The commission shall appoint an administrator of rent control, who or whose deputy shall act as executive secretary for the com- mission and who with the assist- ance of his deputy shall perform the duties and exercise the powers imposed upon him by this ordi- nance. The commission shall have the power to appoint and employ such deputy, clerks, stenographers an8 other assistants as may be re- quired and for which appronrla- tions shall be made by the Board. The salary of the administra- tor shall be fixed by the board. Members of the Commission shall receive no compensation for their services. SECTION 3. Masinium-rent ceil- ings and minimum-service stand- ards. Immediately following the enactment of this ordinance, sub- ject to such adjustments as may be made pursuant to the provi- sions of Section 4, maximum-rent ceilings and minimum-service standards for housing accommo- dations in the County of Hawaii shall be thee following: (a) For housing accommoda- tions rented on April 1, 1946, the rent and services to which the landlord and tenant were entitled on that date. (b) Fbr housing accoimnoda- dations not rented on 9pri1 1, 1946 'but which had been rented within the year end- ing on that date, the rent and services to which the landlord and tenants were last entitled within such years. (c) For housing accommoda- tions not rented on April 1, 1946 nor within the pre- ceeding twelve months, the rent and services generally prevailing for comparable housing accommodations as determined by the com- mission upon a petition duly signed Yor this pur- pose by the landlord. SECTION 4. Petition for adjust- ment of rent. (a) AnY landlord may apply for the reopening of a case whether or not an or- der has previously been issued and petition the commission to adjust the maximum-rent ceiling ap- plicable to his housing ac- commodations o n t h e ground that such maxi- mum-rent ceiling is sub- stantially lower than the rent generally prevailing fm• compa.rable housing ac- commodations; whereupon the commission may by or- der adjust said rent ceil- ing to provide the rent generally prevailing for comparable housing ac- commodations as deter- mined by the Commission. tb) Any landlord may petition the commission to adjust the maximum-rent ceiling or minimum-service stand- ard, or both, applicable to his housing accommodations to compensate for (1) a substantial rise, since Api~l 1, 1946, in taxes or other maintenance or operating costs or expenses; or (2) a substantial capital im- provement or alteration made since April 1, 1946 whereupon the commission may by order adjust such maximum-rent ceiling or minimum-service standard in such manner or amount as it deems proper to com- pensate therefor, in whole or in part if' it finds such adjustment necessary to carry out the punposes of this ordinance; provided, however, that no such ad- justment fn maximum-rent celling or minimum-service standard shall permit the receipt of rent in excess of that generally prevailing for comparable housing ac- commodations as determin- en Eby the commission. (c) Any tenant may petition the commission on the ground that the services supplied to him are less than the services established by the minimum-service standard for his housing accommodations; wherewp- on the commission may or- der that the servfces be maintained at such mini- mum service standard or that that the maximum-rent celling be decreased to com- pensate for a reduction in Services as it deems neces- sary or appropriate to car- ry out the purpose of this ordinance. (d) Any landlord may petition the commission to reduce the services supplied by hSm in connection with any housing accomodations; whereupon the commission, if it deems that the reduc- tion of such services is to be made in good Paith for valid business reasons and is not Inconsistent with car- rying of the purposes of this ordinance, may by order reduce the mfnimum- service standard applicable to such housing accommo- dations, and adjust the maximum-rent c e i l i n g downward in such amount as it deems proper to com- pensate therefor. Any adjusted maximum- rent ceiling or minimum- service standard ordered pursuant to this section shall be the maxfm:um-rent ceiling or minimum-service standard fcr the housing accommodation s u b j e c t thereto. SECTION 4-A. Proceedings insti- toted by the Commission on its own Initiative. In any case where the commission may think it ad- visable to institute proceedings on its own initiative it shall, before taking such action, serve notice capon both the landlord and the tenant of the housi^~ accommo- dation involved stating Uhe pro- posed action and the grounds therefor. Thereafter the pra.;eed- ings shall be in accordance with Section 5. SECTION 5. Procedure. Any petA- tion flied by a landlord or tenant under Section 4 shall be referred to the administrator. Notice of such action, in such manner as the commission shall prescribe, shall be given the tenant and landlord of the housing accommo- dation involved. If the petitton presents a bona fide case, the ad- ministrator shall grant a hearfng which shall be conducted in ac- cordance with procedure prescribed by the commission. The Iandlor3 and tenant shall ~+e given an op- ~portunity to be heard or to file written statements and the com- mon law rules of evidence shall not be controlling at such hear- ing. The administrator after a hearing shall make flindings of fact and recommend an appropri- ate order, copies of which shall be served upon the parties to the proceeding. Within ten days after such service any such panty may request, that the proposed order be reviewed by the commission, and if there be no request, the findings and proposed order of the administrator shall thereupon by the findings and the order of the commission; provided, however, the commission may review such pro- ceedings on its own motion at any time within ten days after service of the administrator's findings and proposed order upon the partfes. UFOn the request oP any such party, or upon motion by the rom.- mission, the record in the case shall forthwith be transferred to the commission for review and it may, fn its discretion, grant a new hearing. After such hearing or re- view, the commission shall state its findings of Yact and shall make an appropriate order in the case. The rent Control Commission through its agents will have the right to Inspect at any reasonable hour any housing accommodations subJeot to proceedings inst[tuted in accordance with the provisions of Section 4 or 4-A of this ordi- nance. SECTION 8. Appeals. Nothing is. this ordinance shall be construed to prohibit an appeal at any court having lurLsdiction to entertain an appeal from any order or ruling of the administrator or the wmmis- sion. In the event oY an appeal, it shall be the duty of the com- mission to forthwith transmit to the court in which such nppeal has been perfected, a certified copy of the record had before the com- mission 1n regard to the matter in which the appeal was taken. SECTION 7. Prohibitions. (a) It shall be unlawful re- gardless of any agreement, lease or other obligation of entered into on or sub- sequent to April 1, 1946 fur any person to spay, demand or receive any rent in ex- cess of the maximum-rent ceiling or refwe to supply- any service required by the minimum-service standard, or to offer to pay, or agree to demand or receive any such excess rent. (b) It shall be unlawful ~ charge more rent per day for housing accommoda- tions, the term of occupan- cy for which has been changed from a weekly( monthly or other long term basis to a pet diem basis, than the maximum rent for the discontinued term oY occupancy divided by the number of days in the discontinued term except: Sng hotel, rooming house, boarding house, resident club and of other housing accommodations rented or offered for rent on an over- night or other transitory basis. (c) It shall be unlawful to rent or offer for rent any hous- ing accanrmodations which were not rented on April I, 1946 nor within the Fre- ceeding twelve months, un- less the landlord shall first petition the rent control commission to establish a maximum-rent ceIIing and minimum-service standard for such housing accommo- dations. SECTION 8. Unlawful to remove a tenant, when. IC shall be unlaw- ful for any person to remove or attempt to remove from any hous- ing accommodations the tenant or occupant thereof, or to refuse to renew any ]ease or agreement Yor the use of such accommodations. because such tenant or occupant has taken or proposes to take any action authorized or required by this ordinance, or any order Issued under the aubhorfty of this ordi- nance. SECTION 9. Recovery of posses- sion by landlord, when permitted. It shall be unlawful for any person to institute any action or proceed- ing to recover possession of hous- ing accommodations so long as the tenant continues to pay the rent to which the landlord is en- t.tled under this ordinance, unless; (1) The tenant is (a) violating any obligation of his ten- ancy (other than an obli- gation to pay rent higher than the rent permitte3 under this ordinance, or any order thereunder, ap- plicable to the housing ac- commodations involved, or an obligation to surrender possession of such accom- modations) or (b) commit- ting a nuisance or using the housing accommoda- tions for immoral or lllegnl purposes or for other than living or dwelling purposes, or (c) allowing more per- sons to Ifve 1n such hous- ing accommodations than the accommodations woul.l normally permit except as authorized by the Renb Control Commission; or (2) The owner seek in good faith to recover possession of the property for his im- mediate and personal use and occupancy as a dwell- ing; provided, however, the owner must immediately occupy said property for a period of at least six months thereafter unless granted permission to va- cate, after showing good cause therefor, by the Ad- ministrator with the ap- proval of the Commission; or B) The owner has in good faith contracted Sn writing to sell the protxrty for im- mediate and personal use and occupancy as a dwelling by the purchaser thereof; provided, however, that !n any proceeding in- stitwted to recover pos- session oY housing accom- modations under 'tLLae pro- visions of this sub-section, where she payment or pay- ments of prSncipal made by such purchaser aggregate less than twenty-percent (20%) of the purchase pricy such fact shall constitute in evidence a prima facie presumption that said con- tract to sell was not made in good faith, and pro- vided, further that where the purchases recov;~rs possession of the property for his personal occupancy as a dwelling, he must oc- cupy said premises for a period of at least six months thereafter unless granted permission to va- cate, after showing good cause therefor, 'by the ad- mfnistrater with the an- proval of the commission; or (4) The landlord seeks in good faith to-recover possession for the im~nedlate purpose of substantially altering, remodelling, or demolishing the property, the plan's fort' which altered or re- modeled construction have been filed with and ap- proved by the Bullding In- spector of the County of Hawaii; or (5) The landlord seeks to re- crover possession of a room or rooms occupied by a tenant or tenants in the landlord's own dwelling. This sub-section shall not apply to a duplex or other is entirely separate and type of apartment which apart from the landlord's own dwehing accommoua- tions; or (g) The landlord seeks to re- cover possession of rented housing accommodations which have been occupied or suplet without the writ- ten consent of the landlord. 6FiCTION 9-A. Sub-Tenants and Aaaft.on>. Occupants. No tenant shall let or sub-let any part of the rented housing accommodations without the written consent of Gne iandiord. In the event that ~ther~ °itre mare occupants in the particular housing accommodations than there were at the time the tenancy was created (other than increases :n the family of the tenant by birth) the tenant shall notify the land- lord in writing of such fact within ten days after the enactment of this ordinance cr thereafter with- in ten days after such additional occupant or occupants have began to dwell in such ho~;ng accommo- dations stating in such notice the number of such additional occu- pants. SECTION 9-B. Registration. On or before September 1, 1946 and within thirty days after the pro- perty is first rented, whichever date is the later, every landlord of housing accommodations rented or offered for rent, within the County of Hawaii, shall ftle in triplicate, a written statement on the form provided therefor t,t be known as a registration statement. The state- ment shall identify each dwelling unit and specify he maximtun- rent provided by this ordinance far srrh dwelling unit and shall con- tain such other in£orm~ation as the commission may require. T'he orig- i^al shall remain an file with the commission and one copy stamped to indicate ft 1s a true copy of the original shall 'be delivered to the tP~a ;t and one copy so stamxd returned to the landiord. Within flue days after ran Ciao to anew tenant, or after a new IAndlord has acquired the housing accommodations, the landlord shall file a notice an the form Provided therefor, an which he sha71 ob- fain the tenant's signature stating that there has been a change of landlords or of tenancy and that the rent for such accommodations is in conformity with this ordi- nance. SECTION 9-C. Posiing oY Rates. The Iandloid of every hotel, room- ing house, boarding house. resi- dent club and other housing ac- com~madations rented or offered for rent on an overnight or other transiWry basis shall post in a con- spicuous place in the office ur pwblic room and every bedroom of such housing accommodation a statement of the maximum-rent ceiling allowed under the provi- sions of this ordinance for such housing accommodation. SECTION 9-D. Rental Recefnts. Every landlord of housing accom- modations rented er offered Ior rent within the Oounty of Hawaii shall furnish to each tenant un_ on the payment of rent, a rental re- ceipt, a duplicate of which shall be kept by the landlord on which shall appear the date oY payment, the address cf the housing accom- modation, including unit designa- tion, If any, the period Yor which the payment 1s made, the amount paid, the name of the tenant and the signature oY the landlord nr his duly authorized agent. SECTIQN 10. Penalty. Any per- son who wilfully violates any pro- vision of this ordinance, or any order made Pursuant to the pro- visions of this ordiance, aad any person who wilfully makes any statement or eaty false in any material respect in any petition or report required tc be kept or filed hereunder, aad any person who wilfully participates in any fictitious sale or any device or ar- rangement with intent to evade this ordinance, er any order thereunder, shall be guilty of a misdemeanor, and upon conviction thereof shall be fined not more than five hundred dollars or im- prisoned for not more than one year, ar both. SECTION 11. Declaration of le- gislative intent. It is hereby de- clared float public emergency exists within the County of Hawaii be- cause of the Tidal Wave which has aggravated the congested sit- uation with regard tr, housing ar,- cemmodations in flee County cf Ilawaii and has made it increas- ingly difficult for persons whose duties and obligations require them to live in this community, as well as local and permanent resi- dents, to obtain each accommo- nations at a fair rate of rental. In- stances of rent-gouging practices by some landlords have been dis- closed and it is the intention of this board that in the interests of public service ren rs charged for hou:,ing accommodations must he regulated and controlled so as to prevent speculative and manipula- tive practices ~by landlords, whlle at the same time ¢liowing to the landlords a fair return on the valve of their housing accom- modations. SECTION 12. Severability. If any provision of this ordinance or the application or such provision to any person or circumstances shall be held invalid, the validity of the remainder of the pmvisian to other persons or circumstances shall not be affected thereby. SECTION 13. This Ordinance shall take effect from and after tSe date of its a~ppruval. Introduced by: (.4G) EDWIN A. DE SII,VA Supervisor, 1st Representative District Dated at Hilo, Hawaii, this 23rd day of July, A. D. 1946. TERRITORY OF HAWAII ) SS COUNTY OF HAWAII ) I HEREBY CERTIFY that the foregoing Ordinance was regularly considered at a meeting of the Board of Supervisors of the County of Hawaii held at the County Seat rpon the 29th day aY July, A. D. 1946, and upon being put to vote said Ordinance was adopted by a majority of the Supervisors at said meeting. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the County oY Hawaii upon this 29th day of July, A. D. 1946. [SGDJ EDWIN M. DESHA G'ounty Clerk of the County of Hawaii (SEAL)