Compliance Report shows occupancy undertaken in good faith but not in conformity with the standards of war worker eligibility, the National Housing Agency will take such corrective measures as can be taken without undue hardship to those who have acted in good faith.

(b) If such checks of occupancy as the National Housing Agency will make from time to time reveal any willful misrepresentation in a Compliance Report which has resulted in improper occupancy of housing reserved for war workers, the National Housing Agency with the aid of other governmental agencies will take appropriate action to make such housing immediately available for eligible war workers if they are in need of housing in the locality.

§ 702.32 Effective date of "Compliance Report on Occupancy of Private War Housing" method. (a) All owners of private war housing begun on or after February 10, 1943, shall file the "Compliance Report on Occupancy of Private War Housing" (Form NHA 60-8) as provided in §§ 702.30-702.33, except where use is made of the alternative method of the "War Worker's Housing Referral Card" as set forth in § 702.33.

§ 702.33 Alternative method for occupancy of housing begun on or after February 10, 1943: "War Worker's Housing Referral Card" from War Housing Center.

(a) In localities where War Housing Centers are in operation, owners may accept as evidence of eligibility, as an alternative method to the "Compliance Report on Occupancy of Private War Housing," the War Worker's Housing Referral Card (Form NHA 30-34) when it is presented by the applicant to whom it was issued at the War Housing Center. War workers who have not been referred by the War Housing Center may be directed by the owner to the War Housing Center to apply for a War Worker's Housing Referral Card in lieu of the owner preparing a Compliance Report. This card will be issued at War Housing Centers only to those persons who qualify as essential in-migrant war workers as defined in the regulations in this chapter. The form will include a portion to be detached by the owner after the house has been rented to the war worker and to be returned to the War Housing Center as an occupancy report in lieu of the Compliance Report on Occupancy of Private War Housing. Thus, in those localities where

War Housing Centers are in operation, the War Worker's Housing Referral Card will serve both as an authorization to the owner to accept the bearer as eligible and as conclusive evidence of the owner's compliance with the occupancy requirements of priority assist

ance.

(b) If a worker coming to the War Housing Center is found to be ineligible under the regulations in this chapter, but to be eligible for certain types of housing commenced before February 10, 1943, the worker may be appropriately advised and referred.

PRIVATE H-2 HOUSING

AUTHORITY: §§ 702.50 to 705.56, inclusive, issued under 54 Stat. 676, as amended, 55 Stat. 838; 50 U.S.C. App., Sup., 1152, 601-605. E.O. 9024, 9040, 9070, 9125; 3 CFR Cum. Supp.

SOURCE: §§ 702.50 to 702.56, inclusive, contained in NHA Regulation 70-1, Administrator, effective Nov. 10, 1944, 9 F.R. 13555.

$ 702.50 Purpose. (a) The purpose of §§ 702.50-702.56 is the establishment of rules and procedures for undertaking the construction of private H-2 housing, and the rental or sale thereof, in accordance with the responsibilities of the National Housing Agency. Housing under the H-2 program is new construction for the purpose of relieving situations of extreme general hardship in communities resulting from a lack of housing accommodations, as distinguished from housing under the H-1 program, which is the housing the National Housing Agency has been programming specifically for essential in-migrant war workers.

702.25

(b) No other public regulations of the National Housing Agency covering occupancy, rental or disposition of private housing (i. e. Part 701 of this chapter, §§ 702.1-702.4, 702.10-702.13, 702.29, 702.30-702.33 and NHA Regulation 60-71) shall apply to private H-2 housing, and the provisions of such regulations are hereby restricted accordingly.

§ 702.51 Definitions. (a) As used in §§ 702.50-702.56, the following terms shall have the meaning ascribed to them below:

(1) "Private H-2 housing" includes all construction hereunder which receives priorities assistance and authority to begin construction pursuant to an H-2

1 Not filed with the Division of the Federal Register.

quota established by the National Housing Agency.

(2) "Held for rental" includes only an ordinary landlord-tenant relationship, and does not include a tenancy coupled with an option to purchase or other form of lease-option or agreement, whether entered into before or during the tenancy, relating to a purchase of the housing at any time.

(3) The "approved rental" shall be the total monthly rental stated for the unit in the application Form WPB 2896, as approved, or the amount thereafter approved by the National Housing Agency, pursuant to a written request for the establishment of rental (see § 702.53 (b) hereof) or an increase in rental (see 702.54 hereof);

or

(4) The "approved sales price" shall be the sales price stated for the unit in the application Form WPB 2896, as approved (or the amount thereafter approved pursuant to § 702.53 (b) § 702.54 hereof), which shall be the total consideration paid by a purchaser for such unit: Provided, That, in any event, there shall be excluded from the approved sales price those incidental charges which a purchaser of real estate customarily assumes in the community where the real estate is located.

(5) "Shelter rent" shall be the approved rental, less charges for tenant services and additional charges;

(6) "Charges for tenant services" shall include charges for only the following services and items, which are enumerated in Form WPB 2896 and approved, and none other: (i) Heating and air conditioning, including heat and air conditioning supplied direct to tenants, pro rata charges for heating and air conditioning common hallways, stairways and rooms, and heating hot water for tenant use; (ii) janitor or maid service to tenants, including cleaning of common hallways and rooms; (iii) project lighting including lighting of common hallways and rooms, common recreation areas and driveways, exclusive of tenant gas and electricity; (iv) elevator service, maintenance and operating expenses, but not depreciation; (v) water, including cost of water supplied direct for tenant use and for use in common rooms such as laundries; (vi) garbage and rubbish removal; (vii) insect and rodent extermination; (viii) extra equipment, including venetian blinds, telephone and buzzer equipment in tenant units; furniture,

carpets, mats, stair treads, draperies, and recreation equipment in common areas, but not including project office furniture and similar management overhead; (ix) cooking ranges and refrigerators or iceboxes; and (x) ground maintenance. "Charges for tenant services" does not include charges for household furniture and furnishings supplied for tenant use in dwelling units (as distinguished from furniture supplied in common hallways and common rooms), as such charges are determined not by the National Housing Agency but by the Office of Price Administration.

(7) "Additional charges" shall include only the following: (i) A reasonable charge, which is specified in Form WPB 2896 and approved, for garage space which need not be supplied as an essential part of the dwelling unit and included in the shelter rent; and (ii) an equitable pro rata amount of the actual cost to the landlord of tenant gas and electricity, which need not be specified in Form WPB 2896 or approved.

(8) "Room" shall include only a living room, dining room, sleeping room, or kitchen, except that a kitchenette or dinette shall be considered as one-half room each.

§ 702.52 Application for priorities assistance and authority to begin construction. (a) Any person desiring to construct a dwelling pursuant to an H-2 quota established for the area by the National Housing Agency, may make application on Form WPB 2896 for priorities assistance and authority to begin construction of the dwelling for one of these purposes; rental, sale, or occupancy by the original owner. Such application shall be filed with the local office of the Federal Housing Administration having jurisdiction, in accordance with instructions issued by the Federal Housing Administration.

(b) The local office of the Federal Housing Administration may approve the application pursuant to §§ 702.50-702.56, but only if that office determines that (1) if approved for rental or for sale, the proposed rental or proposed sales price is within the range of currently authorized rental levels or current replacement cost levels for similar accommodations in the area; or (2) if approved for occupancy by the applicant such person has submitted satisfactory evidence of his intention to occupy the property.

(c) Upon approval of such application and the issuance, if any, of an appropriate preference rating and allotment symbol, the applicant and all successors in interest to the approved application, rating or symbol, or to any property constructed with the assistance thereof, shall be bound by the terms of such application and preference rating and of all applicable rules, orders, and regulations of the War Production Board and the National Housing Agency.

§ 702.53 Sale and rental of private H-2 housing. (a) For the duration of the national emergency declared by the President on September 8, 1939, all private H-2 housing may be rented or disposed of, by the original or any subsequent owner, only as provided in §§ 702.50-702.56.

(1) In the event that the application provides for sale, the housing may be sold (or resold by a purchaser) at an amount not exceeding the approved sales price, or may be held for rental as provided in 702.53 (a) (2) and § 702.53 (b) (1). In the event the housing is to be sold, the "approved sales price" shall be approved within the limits of the H-2 locality quota established by the National Housing Administrator and shall not exceed $8,000.

(2) In the event that the housing is rented under §§ 702.50-702.56, it shall be "held for rental" as defined in § 702.51 (a) and no rent payment exceeding the approved rental shall be required of the tenant for the housing as an unfurnished dwelling unit. The "approved rental" shall be approved within the limits of the H-2 locality quota established by the National Housing Administrator and shall not exceed $65.00 per month shelter rent per unfurnished dwelling unit, plus charges for tenant service (not exceeding $3 per month per room) and additional charges (as defined in § 702.51 (a)). The owner is required, in return for the approved rental, to supply and suitably maintain the unfurnished dwelling unit and appurtenances described in the application: Provided, That none of the provisions of §§ 702.50-702.56 shall be interpreted as relieving the tenant from legal liability for waste.

(b) The owner of any private H-2 housing may dispose of such housing in a manner other than that stated in the approved application (or pursuant to 702.54) only in the following manner

and by complying with the following prescribed procedure:

(1) Private H-2 housing which has been approved for sale (provided for in the application or under § 702.53 (b) (3)) may be held for rental by the owner, Provided, That the owner shall, prior to initial occupancy by the tenant, submit to the local office of the Federal Housing Administration for approval, a written request for authority to hold for rental and the establishment of an approved rental, setting forth a schedule and justification of the rentals which the owner desires to charge, and obtain such approval. The Federal Housing Administration, in passing upon the request, shall be governed by the same considerations and restrictions as though the request were made upon an original application for priority assistance and authority to begin construction. If the approval is granted, the Federal Housing Administration shall notify the owner in writing, and shall advise that the rental so established constitutes the "approved rental" under §§ 702.50-702.56, in excess of which the housing may not be rented. The establishment of an approved rental under this paragraph shall not otherwise affect the approval of sale of such housing.

(2) Private H-2 housing which has been approved for rental may be sold to a purchaser who shall hold such housing for rental in the same manner and under the same terms, conditions and restrictions as applied to his vendor.

(3) Private H-2 housing which has been approved for occupancy by the original owner may be sold or held for rental, Provided, That the original owner shall have first submitted to the local office of the Federal Housing Administration for approval, a written request for authority to hold for rental or to sell such housing and for the establishment of an approved rental or an approved sales price, and obtained such approval. The Federal Housing Administration, in passing upon the request, shall be governed by the same considerations and restrictions as though the request were made upon an original application for priority assistance and authority to begin construction. If the approval is granted, the Federal Housing Administration shall notify the owner in writing and shall advise that the rental or sales price so established constitutes the "approved rental" or "approved sales price" under

this regulation, in excess of which the housing may not be rented or sold, as the case may be.

§ 702.54 Increase of rent or sales price. (a) Notwithstanding any other provisions of §§ 702.50-702.56, the initial rent charge prior to tenant occupancy or the sales price for any private H-2 housing may be increased over the amount theretofore approved, if such increase is authorized by this section and approved by the National Housing Agency. The owner of any such housing may petition on Form NHA 60-4 for such increase in rental or sales price and submit such petition to the NHA Regional Representative, through the local office of the Federal Housing Administration: Provided, That the petition must be submitted prior to initial occupancy or, if the petition is for increase in rent charge, then prior to an initial occupancy by a tenant. Each NHA Regional Representative is authorized to approve such increase as he deems appropriate in the particular case; Provided, That the petition shows clearly (1) that the owner has incurred, or will incur, costs in the construction of such housing over which the owner had or has no control, in excess of the costs originally estimated or (2) if the petition is for an increase in rent charge, that the owner will incur costs in the operation of such housing over which the owner has no control, in excess of the costs originally estimated, or that the owner will provide tenant services in addition to those specified in Form WPB 2896; and that if the petition is approved in accordance with (2), the petition must be approved prior to an initial occupancy by a tenant. Any increase in rental or sales price approved hereunder may be added to an "approved rental" or "approved sales price" within the meaning of §§ 702.50-702.56.

(b) Any request for permission to increase the rent charge for any private H-2 housing submitted after such housing has been initially occupied by a tenant, or other rent matters relating to such housing and not covered by §§ 702.50-702.56, must be submitted to the Office of Price Administration.

§ 702.55 Interpretation and compliance. (a) When any local office of the Federal Housing Administration is unable to determine any question arising under §§ 702.50-702.56, it shall refer such question to the NHA Regional Repre

sentative. Such referral shall be accompanied by a full statement of the facts and circumstances relevant to the problem, and may include recommendations for its disposition. In the event that the Regional Representative desires assistance in disposing of the question, he shall refer it to the Office of the General Counsel of NHA.

(b) All matters involving the enforcement of the terms of §§ 702.50-702.56 where compliance cannot be obtained voluntarily at the local level, shall be referred to the Office of the General Counsel of NHA.

§ 702.56 Applicability and duration. (a) The provisions of §§ 702.50–702.56 shall be binding upon any person in addition to the original owner, who shall hold any right, title, or interest in or to any private H-2 housing.

(b) Any reference herein to a "regulation" relates to the regulation and any amendments thereto, revision thereof, or superseding or modifying regulation.

(c) The provisions of §§ 702.50-702.56, except as otherwise amended or revoked, shall continue in force and effect for the duration of the national emergency declared by the President on September 8, 1939.

AUTHORITY: §§ 703.1 to 703.7, inclusive, issued under 54 Stat. 676, as amended, 55 Stat. 838; 50 U.S.C. App., Sup., 1152, 601-605. E.O. 9024, 9040, 9070, 9125; 3 CFR Cum. Supp.

SOURCE: §§ 703.1 to 703.7, inclusive, contained in NHA Regulation 60-5C, Administrator, Mar. 14, 1944, effective Jan. 27, 1944, 9 F.R. 2818.

§ 703.1 General policy. The purpose of § 703.1-703.7 is to set forth the public war housing to which occupancy standards apply, the persons who are eligible war workers for such housing, the length of time such housing must be held for their use, and the conditions under which such housing may be made available for other purposes.

(a) On or § 703.2 Exclusive reservation. after February 10, 1943, initial occupancy and re-occupancy of every dwelling accommodation in all Federally-owned or leased public war housing projects under the jurisdiction or control of NHA, or any of its constituent units, shall be reserved exclusively for eligible war workers, as defined in Part 701 of this chapter, except (a) with respect to 4 Lanham Act mutual ownership projects under the jurisdiction of FPHA (which are substantially completed and occupied), resident as well as in-migrant civilian war workers may be admitted to occupancy, and (b) with respect to off reservation or off post projects programmed for military or naval personnel prior to July 16, 1942 (the date of the joint directive of the War Department, Navy Department and National Housing Agency), eligible military or naval personnel, as certified by the local commandant," may be admitted to occupancy: Provided, That preference (without a specified reservation period) has first been given to indispensable in-migrant civilian war workers.

(b) On or after February 10, 1943, initial occupancy or re-occupancy of every dwelling accommodation in all FPHA-aided public war projects for which applications for priority assistance are submitted to WPB after February 10, 1943 shall be reserved exclusively for such eligible war workers, as defined in Part 701 of this chapter, as are eligible for

occupancy thereof under applicable state or Federal laws.1

(c) On or after February 10, 1943, reoccupancy of every dwelling accommodation in such Federally owned public non-war housing projects under the jurisdiction of FPHA, as the National Housing Administrator determines are suitable to provide war housing, shall be reserved exclusively for eligible war workers as defined in Part 701 of this chapter.

§ 703.3 Limited reservation. (a) Reasonable preference for occupancy by war workers (as required by the conditions under which priority assistance was granted") shall be observed with respect to all FPHA-aided public war housing projects for which applications for priority assistance were submitted to WPB prior to February 10, 1943.8 The local housing authorities that own and manage these projects shall be requested to conform, to the extent practicable, their management programs by reserving initial occupancy or re-occupancy in these projects to such eligi

Tenant selection, in projects included in this paragraph (b) which are located in States that have not enacted appropriate defense or war housing legislation, is subject to low income limitations of applicable state housing legislation; and with respect to those projects which are not converted to Public Act No. 671, tenant selection is subject also to the low income limitations of the United States Housing Act and of applicable state housing legislation.

5 FPHA-operated PWA Housing Division projects, local authority-leased PWA Housing Division projects, and non-farm housing projects transferred to FPHA from FSA pursuant to the provisions of paragraph 1 (g) of Executive Order 9070 (3 CFR Cum. Supp.).

• On all projects described in this paragraph (c) where there are outstanding lease or sale agreements, compliance with the provisions of this order is subject to appropriate modification of such outstanding lease or sale agreements to conform them to the provisions of this order. On all PWA Housing Division projects, compliance with the provisions of this order is subject to the obtaining of appropriate Presidential findings and conversion to Public Act No. 671.

The conditions under which priority assistance for these projects were granted defined reasonable preference as meaning that each dwelling unit shall be reserved for occupancy by in-migrant or resident war workers for 30 days after the entire project is available for occupancy or 90 days from starting to take tenant applications, whichever period is longer.

8 Includes Federally-aided local authorityowned Public Act No. 671 projects and priority assisted Public Act No. 412 projects, but excludes normal low rent housing projects under Public Act No. 412 which merely obtained civilian priority assistance without a requirement of reasonable preference for war workers.