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HomeMy WebLinkAboutORD 1960-055.._ _. _... - Y .~~ i- COUNTY OF }iAWAII - STATE OF ;iA'vJATI O;tIiINANCE NC, 55 AN GRDINANCE TO REGULATE REivTS AND RENTAL CONDITIONS OF PROPERTY FOR PLACES O1; ABODE, CREATINJ A REFIT CON'IRCL CONINiISSION, DEFTN]IdG ITS POWERS, DUTIES AND FUNCTIONS, AND PROVIDING PENALTIES FOR,1'}IL VICLATIOi~t THEREOF. BE IT OriDAINED BY THE GUARD GF SUPERVISORS CAF "1 HE COUNTY OP HA>r.A1I: Section 1. Definitions. As uses ir. this Crsinance: (a) The term "ad~r~inistratcr" means the administrator of rent control. (i~) The term "baarc'" means the Board of Supervisors of the County of~ Hawaii. (c} The term °commission" means the rent control commission. (d) The terra "housin, accornmocations" means any buildinc;, structure or hart thereof, or land appurtenant thereto, cr any other real or personal property rented cr offered far rent for living c>r swelling purposes in the County of Hawaii (ineluc'ing, but without limitation, houses, apartments, hotels, rooming houses, boarsing houses anc other properties ^sed far living or ewellin_:; purposes) together witi~i all sc-rvices supplied in connection with `he use or occupancy of such property. (e) The ter^:'"lanclord" includes an owner, lessor, sublessor or other person entitled to receive rent for the use or occupancy of any housing accommodations. (fl The term "maimu~n-rent ceiling" means the maxi.num rent ,,>~-, which may ba, remanded or received for the use of occupancy c£ 4~, F' .~ ' ~~~~- e( ~ housiryg accommodations. ~`j) The terra 'Eminimun-service standard" means the minimum service which may be supplies with the rentinc, or leasing of housing accommodations. (i~) The tear: "person" includes one cr more individuals, firms, partnerships, corporations or associations and any agent, trustee, receiver, assignee-. or other representative thereof. [" S - (i) The term '"rent" ^~eans the consideration, includ4ff~~p--••••°== ••-•------ FUe Nc..........---......---._.....,_ bonus, benefit or gratuity, c'emande:d or received per day, $bf°~FIe„-,,,__--__.__~ Dates: __r,._.._._ ~,.... month, year or other period of time, as the case may be, for the use or occupancy of housing accommodations or the transfer of a lease for such accommodations. (j) The term "services" includes the furnishing of light, hot or cold water, telephone, furnishings, furniture, window shades, screens, awnings, and storage, kitchen, bath and laundry facilities and privileges, maid service, janitor service, yard service, removal of refuse, and the making of all repairs suitable to the housing accommodations or necessitated by ordinary wear and tear, and any other ordinary privilege connected with the use and occupancy of housing accommodations. (k) 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 Commission. There is hereby created a rent control commission of five members, any three of whom are empowered to act, who shall be appointed by the Chairman and Executive Officer with the approval of the Board of Supervisors, for a term of office co-existent with the term of the Chairman and Executive Officer. Any vacancy shall be filled by appointment for the remainder of the unexpired term. The Chairman and Executive Officer shall name one of the members to act as Chairman of the commission. A quorum shall consist of a majority of the members. The Chairman and Executive Officer of the County of Hawaii, with the approval of the Board of Supervisors of said County, shall appoint an administrator of rent control, who shall act as executive secretary for the commission and who shall perform the duties and exercise the powers imposed upon him by this Ordinance. The commission shall have the power to employ such clerks, stenographers Data :............'•--•°-'---"-----.. _.... and other assistants as may be required and for which appropriations shall be made by the Board. The salary of the administrator shall be fixed by the board. Members of the Commission shall. receive no compensation for their services. Section 3. Maximum-rent ceilings and minimum-service standards. Immediately following the enactment. of this ordinance, subject to such adjustments as may be made pursuant to the provisions of Section )}, maximum-rent ceilings and minimum-service standards for housing accommodations in the County of Hawaii shall be the following; (a) For housing accommodations rented on April 1, lyL•ti, the rent and services to which the landlord and tenant were entitled on that date. (b) For housing accommodations not rented on April 1, 19){b but which had been rented within the year ending on that date, the rent and services to which the landlord and tenants were last entitled within such years. (c) For housing accommodations net rented on April 1, lyl}6, nor within the preceding twelve months, the rent and services generally prevailing for comparable housing accommodations as determined by the commission upon a petition duly signed for this purpose by the landlord; provided, however, that this sub- section shall not apply to housing accommodations constructed after the enactment of this ordinance. Section 3-A Maximum-rent ceiling and minimum-services standards for housing accommodations constructed after the enactment of this ordinance. Whenever a petition is filed with the commission for the setting of rent on housing accommodations completed after the enactment of ;'ris ordinance, the maximum-rent ceiling and minimum-service shall be the following: standards in the Cql~~ of Hawaii o.a. rra..___..4 File 2~0. ._.. __...--._._.---- ..._..,. ~ Date: For housing accommodations not constructed or sponsored by an agency of the United States, State of Hawaii or County of Hawaii governments, the maximum basic rent shall be determined by the commission on a basis that will yield a gross income of seventeen (17) per cent of the total investment including land. For. housing accommodations constructed or sponsored by any authorized agency of the United States, State of Hawaii or County of Hawaii governments, the commission may, instead of determining the basic rent as provided by the preceding paragraph, accept the rent recommended as economically sound for such housing accommodations by such authorized agency as the basic rent for such housing accommodation. If such rent recommended by such authorized agency is accepted, the maximum- rent ceiling for such housing accommodation shall be set after making adjustment for services required to be furnished therewith, for which no allowance was made by such authorized agency at the time it finally recommended the rent for such housing accom- modation. Such petition shall be referred to the administrator, or. to one of his deputies, who shall make findings of facts and recommend an appropriate or•dei• setting the maximum-rent ceiling and minimum-service standards for such housing accommodation under the procedure prescribed in Section 5. Such findings and order of the administrator, or of any of his deputies, shall be reviewable by the commission as provided in Section 5, and unless a request for. review of such findings and order by the commission shall be made as provided in Section 5, the findings and order of the administrator, or any of his deputies, shall be the findings and order of the commission. _q_ ~ ~~ O.d. No. ---------' Filc l:o..._------------ -- --~ M. ll. 1.0. --"' --'------_... Dade: '-'-'------.. When petitioning the commission for the setting of rent on a housing accommodation under this subsection, the landlord, in addition to providing the commission with such information as may be otherwise required by this Ordinance, shall provide such evidence as to the rent recommended by such authorized agency and such other evidence of total investment, anticipated operating costs, and other pertinent data as may be required by the administrator, or his deputies. Section ~}. Petition for adjustment of rent. (a) Any landlord may apply for the reopening of a case whether or not an order has previously been issued and petition the commission to adjust the maximum-rent ceiling applicable to his housing accommodations on the ground that such maximum- rent ceiling is substantially lower than the rent generally prevailing for comparable housing accommodations; whereupon the commission may by order adjust said rent ceiling to provide the rent generally prevailing for comparable housing accommodations as determined by the Commission. (b) Any landlord may petition the commission to adjust the maximum-rent ceiling or minimum-service standard, or both, applicable to his housing accommodations to compensate for (1} a substantial rise, since April i, l~j!~ci, in taxes or other maintenance or operating costs or expenses; or (2) a substantial capital improvement or alteration made since April 1, 19L;5 whereupon the commission may by order adjust such maximum-rent ceiling er minimum-service standard in such manner or amount as it deems proper to compensate therefor, in whole or in part if it finds such adjustment necessary to carry out the purposes of this Ordinance; provided, however, that no such adjustment in maximum- rent ceiling or minimum-service standard shall permit the receipt O.d. No. .__ - J- File ti o.._-'---"--'----°--....... M. B. No ...........................__ n,.~o of rent in excess of that generally prevailing for comparable housing accommodations as determined by the commission. (c) Any tenant may petition the commission on the ground that the services supplies to him are less than the services established by the minimum-service standard for his housing accommodations; whereupon the commission may order that the services be maintained at such minimum-service standard or that the maximum-rent ceiling be decreased to compensate for a reduction in services, as it deems necessary or appropriate to carry out the purpose of this Ordinance. (d) Any landlord may petition the commission to reduce the services supplied by him in connection with any housing accommodations; whereupon the commission, if it deems that the. reduction of such services is to be made in good faith for valid business reasons and is not inconsistent with carrying out the purposes of this Ordinance, may by order reduce the minimum- service standard applicable to such housing accommodations, and adjust the maximum-rent ceiling downward in such amount as it deems proper to compensate therefor. Any adjusted maximum-rent ceiling or minimum-service standard ordered pursuant to this section shall be the maximu:n- rent ceiling or minimum-service standard for the housing accom- modation subject thereto. Section 1~-A. Proceedings instituted by the Commission on its own initiative In any case where the commission may think it advisable to institutE proceedings on its own initiative it shall, before taking such action, serve notice upon both the landlord and the tenant of the housing accommodation involved -~- o.d. rr v. °' .-. Fila rlo. ------------.-...--'---'°---' T...-. ' . r . { stating the proposed action anc the grounds therefor. Thereafter the proceedings shall be in accordance with Section ~. Section j. Procedure. Any petition filed by a landlorc or tenant under Section i} shall be referred to the. administrator. Notice of such action, in such -Wanner as the commission shall prescribe, shall be given the tenant and landlorc of the housing accommodation involved. Ii the petition presents a bona fide case, the administrator shall grant a hearing which shall he conducted in accordance with procedure prescribed by the Comrrissicn. The landlorc and tenant shall be given an opportunity to be heard or to file written statements ~nd the common law rules of evidence shall not be controlling at such hearing. The administrator after a hearing shall make findings of fact and recommend an appropriate order, copies of which shall l;e served upon the parties to the proceeding. L•lith,in ten days after such service any such party may request that the proposed order be reviewed by the commission, and if there he no request, the i'indings and the proposed order of the administrator shall thereupon be the findings and the order o£ the commission; provided, however, the commission may review such proceedings en its own motion at any time within ten days after service of the administrators findings and proposed order upon the parties. Upon the request of any such party, or ul:on motion by the commission, the record in the case shall Forthwith be transferred tc the coirunission for review and it may, in its discretion, grant a new hearing. After such hearing or review, the ecmmission shall state its findings of fact 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 accom- modations subject to procee~cings instituted in accordance with the provisions of Sections 'J or :j-A of this Grdinan11ee. 07 J O.J. IJ u. - -'- -_ --'-°---- ~. File lie. .-.- ..............'.---'.".--.. - ~- M. II. ld o... °-----'-----------°---- Section ~. Appeals. Nothing in this Ordinance shall bz construed to prohibit an appeal to any court having jurisdiction to entertain an appeal from any order or ruling of the administra- for or the commission. In the event of an appeal, it shall be the duty of the commission to forthwith transmit to the court in which such appeal has been perfected, a certified copy of the record had before the commission in regard to the matter in which the appeal was taken. Section 7. Prohibitions. (a) It shall be unlawful regardless of any agreement, lease or other obligation entered into on or subsequent to April 1, lylao for any person to pay, demand or receive any rent in excess of the maximum-rent ceiling or refuse 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 to charge more rent per day for housing accommodations, the term of occupancy for which has been changed from a weekly, monthly or other long term basis to a per diem basis, than the maximum rent for the discontinued term of occupancy divided by the number of days in the discontinued term excepting hotel, rooming house, boarding house, resident club and of other housing accommodations rented or offered for rent on an overnight or other transitory basis. (c) It shall be unlawful to rent or offer for rent any housing accommodations which were not rented on April 1, lyla6 nor within the preceding twelve months, unless the landlord shall first petition the rent control commission to establish a maximum-rent ceiling and minimum-service standard for such housing accommodations. -~ o:a. rro....._~~-~~.._. •--•---• File Si o . ................ M. B. No ......................•---.... Date:._ .............-------- __. Section 8. Unlawful to remove tenant, when. It shall be unlawful i'or any person to remove or attempt to remove from any housing accommodations the tenant or occupant thereof, or to refuse to renew any lease or agreement for 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 authority of this Ordinance. Section 9. Recovery of possession by landlord, when permitted. It shall be unlawful for any person to institute any action or proceeding to recover possession of housing accommodations so long as the tenant continues to pay the rent to which the landlord is entitled under this Ordinance, unless: (1) The tenant is (a) viohting any obligation of his tenancy (other than an obligation to pay rent higher than the rent permitted under this Ordinance, or any order thereunder, applicable to the housing accommodations involved, or an obligation to surrender possession of such accommodations) or (b) committing a nuisance or using the housing accommodations for immoral or illegal purposes or for other than living or dwelling purposes, or (c) allowing more persons to live in such housing accommodations than the accommodations would normally permit except as authorized by the Rent Control Commission; or (2) The owner seeks in good faith to recover possession of the property for his immediate and personal use and occupancy as a dwelling; provided, however, the owner must immediately occupy said property for a period of at least, six months there- after unless granted permission to vacate, after showing good cause therefor, by the Administrator with the approval of the Commission; or -~- ~.. Ss O,.i. Ti o. __ ....... ........ Date: •-•.•°•-'---'---------- f3) The owner has in good faith contracted in writing to sell the property for immediate and personal use and occupancy as a dwelling by the purchaser thereof; provided, however, that in any proceedings instituted to recover possession of housing accommodations under the provisions of this sub-section, where the payment or payments of principal made by such purchaser aggregate less than twenty per cent (20~) of the purchase price such fact shall constitute in evidence a prima facie presumption that said contract to sell was not made in good faith, and provided, further that where the purchaser recovers possession of the property for his personal occupancy as a dwelling, he must occupy said premises for a period of at least six months thereafter unless granted permission to vacate, after showing good cause therefor, by the Administrator with the approval of the commission; or (Li) The landlord seeks in good faith to recover possession for the immediate purpose of substantially altering, remodeling or demolishing the property, the plans for which altered or remodeled construction have been filed with and approved by the Building Inspector of the County of Hawaii; provided, however, if the premises so proposed to be altered or remodeled are to be used for residential purposes after such altering and remodeling, then the landlord shall not have the right to recover possession il' the tenant who was in possession immediately prior to the making of the alterations or remodeling should signify his intention to the landlord in writing to reoccupy the premises after the same had been altered and/or remodelled at the rental rate which may be fixed by the Commission. ~5) The landlord seeks to recover possession of a room or rooms occupied by a tenant or tenants in the landlords own dwelling. This sub-section shall not apply to a duplex or other Oad. No. .-._:~- -10- File Nw • ------------------------....... M. 8. No...-...-°-----°-•--•-......r. type of apartment which is entirely separate and apart from the landlords own dwelling accommodations; or (6) The landlord seeks to recover possession of rented housing accommodations which have been occupied or sublet without. the written consent of the landlord. Section y-A. Sub-Tenants and Additional Occupants. No tenant shall let or sub-let any part of the rented housing accom- modations without the written consent of the landlord. In the event that there are more occupants in the particular housing accomodations than there were at the time the tenancy was created (other than increases in the family of the tenant by birth) the tenant shall notify the landlord in writing of such fact within ten days after the enactment of this Ordinance or thereafter within ten days after such additional occupant or occupants have begun to dwell in such housing accommodations stating in such notice the number of such additional occupants. Section j-B. Registration. On or before September 1, lyL}6 and within thirty days after the property is first rented, whichever date is the later, every landlord of housing accom- modations rented or offered for rent, within the County of Hawaii, shall file in triplicate, a written statement on the form provided therefor to be known as a registration statement. The statement shall identify each dwelling unit and specify the maximum-rent provided by this Ordinance for such dwelling unit and shall contain such other informatior. as the commission may require. The original shall remain on file with the commission and one copy stamped to indicate it is a true copy of the original shall be delivered tc the tenant and one copy so staml~~ed +i~eturned to the landlord. Within five days after renting to a new tenant, or after a new landlord has acquired the housing accommodations, the -11- Ord. 210. ---~~-------.-."'.° File 2!0- ------.-_...-----°-----....._ landlord shall file a notice on the forrn provided therefor, on which he shall obtain the tenants 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 Ordinance. Section y-C. Posting of Rates. The landlord of every hotel, rooming house, boarding house, resident club and of other housing accommodations rented or offered for rent on an overnight or other transitory basis shall post in a conspicious place in the office or public room and in every bedroom of such housing accommodation a statement of the maximum-rent ceiling allowed under the provisions of this Ordinance for such housing accommodation. Section y-D. Rental Receipts. Every landlord of housing accommodations rented or offered for rent within the County of Hawaii shall furnish to each tenant upon the payment of rent, a rental receipt, a duplicate of which shall be kept by the landlord on which shall appear the date of payment, the address of the housing accommodation, including unit designation, if any, the period for which the payment is made, the amount paid, the name of the tenant and the signature of the landlord or his duly authorized agent. Section 10. Penalty. Any person who wilfully violates any provision of this Ordinance, or any order made pursuant. to the provisions of this Ordinance, and any person who wilfully makes any statement or entry false in any material respect in any petition or report required to be kept or filed hereunder, and any person who wilfully participates in any fictitious sale or any device or arrangement with intent to evade this Ordinance, or any order thereunder, shall be guilty of a misdemeanor, and upon conviction thereof' shall be fined not more than five hundred dollars or imprisoned for not more than one year, or both. Ord. No. °.----'JI'-- 5------'-- _12_ File lip. -------°---------------......_ Td R Nn Section 11. Declaration of legislative intent. It is hereby declared that a public emergency exists within the County of Hawaii because of the Tidal Wave which has aggravated the congested situation with regard to housing accommodations in the County of Hawaii and has made it increasingly difficult for persons whose duties and obligations require them to live in this community, as well as local and permanent residents, to obtain such accommodations at a fair rate of rental. Instances of resit-gouging practices by some landlords have been disclosed and it is the intention of this board that in the interests of public service rents charged for housing accommodations must be regulated and controlled so as to prevent speculative and manipulative practices by landlords, while at the same time allowing to the landlords a fair return on the value of their housing accommodations. Section 12. Severability. If any provision of this Ordinance or the application of such provision to any person or circumstances shall be held invalid, the validity of the remainder of the provisions to other persons or circumstances shall not be affected thereby. -15- Ord. No. ._._.... ~1_ Filo 2d v. __ .......... ... _._....."._." Dote: -...°.-•--°"-----°'-'--'•---'