Pub. L. 82-96, tit. II, sec. 203

Sec. 203. Section 204 of the Housing and Rent Act of 1947, as amended, is amended by adding at the end thereof the following: “(k) The President shall by regulation or order establish such maximum rent or maximum rents as in his judgment will be fair and equitable for controlled housing accommodations (as defined in section 202 (c)) (1) in any State which by law declares that there exists such a shortage in rental housing accommodations as to require Federal rent control in such State, or (2) in any incorporated city, town, village, or in the unincorporated area of any county (other than a city, town, village, or unincorporated area of any county within a State which is controlling rents) upon receipt of a resolution of its governing body adopted for that purpose in accordance with applicable local law and based upon a finding by such governing body, reached as a result of a public hearing held after ten days’ notice, that, there exists such a shortage in rental housing accommodations as to require Federal rent control in such city, town, village, or unincorporated area in such county. In establishing any maximum rent for any housing accommodations under this subsection the President shall give due consideration to the rents prevailing for such housing accommodations or comparable housing accommodations during the period from May 24, 1950, to June 24, 1950, and he shall make adjustment for such relevant factors as he shall deem to be of general applicability in respect to such accommodations, including increases or decreases in property taxes and other costs within such State, incorporated city, town, or village, or unincorporated area. “(l) Whenever the Secretary of Defense and the Director of Defense Mobilization, acting jointly, shall determine and certify to the President that any area (whether then or ever controlled or decontrolled under this Act) is a critical defense housing area, the President shall by regulation or order establish such maximum rent or maximum rents for any housing accommodations, not then subject to rent control, in such area or portion thereof as in his judgment will be fair and equitable. Notwithstanding the provisions of section 202 (c) the term ‘controlled housing accommodations’ as applied to any such critical defense housing area shall include all housing accommodations in the area, without exception. In establishing any maximum rent for any housing accommodations under this subsection, the President shall give due consideration to the rents prevailing for such housing accommodations or comparable housing accommodations during the period from May 24, 1950, to June 24, 1950, and he shall make adjustment for such relevant factors as he shall determine and deem to be of general applicability in respect to such accommodations, including increases or decreases in property taxes and other costs within such area. maximum rents in any critical defense housing area shall be terminated at such time as the Secretary of Defense and the Director of Defense Mobilization, acting jointly, shall determine and certify to the President that such area is no longer a critical defense housing area, or as provided in subsection (e) or (j) of this section: Provided, however, That in any area where maximum rents are removed under the procedures provided in subsection (e) or (j) of this section, maximum rents may be reestablished after the expiration of thirty days on the determination and certification of the Secretary of Defense and the 65 Stat. 146 Director of Defense Mobilization, acting jointly. No area shall be certified as a critical defense housing area under the authority granted in this subsection unless all the following conditions exist in such area: “(1) a new defense plant or installation has been or is to be provided, or an existing defense plant or installation has been or is to be reactivated or its operation substantially expanded; “(2) substantial in-migration of defense workers or military personnel is required to carry out activities at such plant or installation; and “(3) a substantial shortage of housing required for such defense workers or military personnel exists or impends which has resulted or threatens to result in excessive rent increases and which impedes or threatens to impede activities of such defense plant or installation. “(m) Whenever an area has been certified under subsection (1) to be a critical defense housing area, real-estate construction credit controls imposed under title VI of the Defense Production Act of 1950 shall be relaxed to the extent necessary to encourage construction of housing for defense workers and military personnel: Provided, That the certification, pursuant to subsection (1), that an area is a critical defense housing area shall not be effective in such area for any of the purposes of this section until such real-estate construction credit controls have been relaxed as provided in this subsection to the extent necessary in the determination of the President. The fact that any area has been certified as a critical defense housing area under subsection (1) shall not make such area ineligible for the location of additional defense plants, facilities, or installations, or as a source of additional military procurement of any sort. “(n) No maximum rents shall be established under subsection (1) for housing accommodations in any State where rent control is in effect or in any locality where local rent control is in effect, unless the rent component of the Consumers’ Index of the Bureau of Labor Statistics for such State or locality has increased more than the United States average of the rent component of such index during the last six months for which such index is available immediately preceding the establishment of such maximum rents. The rent component of the Consumers’ Index of the Bureau of Labor Statistics for any State shall be the average, weighted by population as determined by the Bureau of Labor Statistics, for all reported cities in the State, except that, where only one city is reported, the rent component for the State shall be the rent component for that city. Upon the establishment of maximum rents pursuant to subsection (1) for housing accommodations in a State in which State rent control is in effect, State rent control shall thereupon terminate. Upon the establishment of maximum rents pursuant to subsection (1) for housing accommodations in a locality in which local rent control is in effect, local rent control shall thereupon terminate. The rent component for any locality subject to local rent control shall be the rent component as established by the Bureau of Labor Statistics for that locality. Where data concerning rents have not been heretofore collected for a city in a State having State rent control or for a particular locality which has local rent control, the President may cause a survey to be made by the Bureau of Labor Statistics for the purpose of establishing a rent component for that State or locality. For the purposes of this subsection, State rent control shall be deemed in effect in any State in which maximum rents are controlled pursuant to State law throughout the State, regardless of whether maximum rents are actually in effect in every locality of the State. “(o) In order to compensate for increases which have occurred in costs and prices, the maximum rent in effect on the date of enact- 65 Stat. 147ment of this subsection for any housing accommodation shall, upon sworn application, be increased to 120 per centum of the following: The maximum rent for the housing accommodation in effect on June 30, 1947 (or if no maximum rent was then in effect for the housing accommodation, the maximum rent then in effect for comparable housing accommodations), plus the amount of any increase allowed or allowable under this Act for major capital improvements or for increases in living space, services, furniture, furnishings, or equipment, and minus any decrease required or requirable under this Act for decreases in living space, services, furniture, furnishings, or equipment, or for substantial deterioration or failure to perform ordinary repair, replacement, or maintenance. Any increase in a maximum rent applied for under this subsection which is based upon the maximum rent in effect on June 30, 1947, for the particular housing accommodation and upon increases and decreases actually allowed under this Act shall be effective upon the filing of the application. Nothing in this subsection shall require the reduction of any maximum rent, nor prevent such additional adjustment for increases in costs and prices as the President may deem appropriate.”