HomeMy WebLinkAboutORD 1960-055.._ _. _... - Y
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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£
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~~~~- 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.
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(i) The term '"rent" ^~eans the consideration, includ4ff~~p--••••°== ••-•------
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bonus, benefit or gratuity, c'emande:d or received per day, $bf°~FIe„-,,,__--__.__~
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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
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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
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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.
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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
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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
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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.
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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.
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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
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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
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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
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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.
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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.
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