Sec.

702.50

Purpose.

702.51

702.52

Definitions.

Application for priorities assistance and authority to begin construction.

702.53 Sale and rental of private H-2 housing.

702.54 Increase of rent or sales price. 702.55 Interpretation and compliance. 702.56 Applicability and duration.

OCCUPANCY AND DISPOSITION OF PRIVATE WAR HOUSING

NOTE: Three revisions of §§ 702.1-702.4 were filed with the Division of the Federal Register during the period covered by this Supplement. For the revisions contained in General Orders 60-2A and 60-2B, effective July 14 and Nov. 17, 1943, respectively, see 9 F.R. 3065, 245. The other revision, contained in NHA Regulation 60-2C, is set forth below.

AUTHORITY: §§ 702.1 to 702.4, inclusive, issued under 55 Stat. 838; 50 U.S.C. App., Sup., 601. E.O. 9070; 3 CFR Cum. Supp.

SOURCE: §§ 702.1 to 702.4, inclusive, contained in NHA Regulation 60-2C, Administrator, Mar. 14, 1944, effective Jan. 27, 1944, 9 F.R. 2816.

§ 702.1 Private war housing to which occupancy standards apply. (a) Private war housing to which occupancy standards apply are the following:

(1) All new housing, and the additional housing accommodations created by remodeling or rehabilitation, which received or receives priority assistance or authority to begin construction as follows:

(i) Applications for priority assistance was submitted prior to February 10, 1943, on Form PD-105 and received or receives priority assistance through Preference Rating Order No. P-55, or

(ii) Application for priority assistance or authority to begin construction is submitted on or after February 10, 1943, on Form PD-105 (Revised 2-10-43) if section B thereof is executed;

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(2) All new housing, and the additional housing accommodations created by remodeling or rehabilitation, which received or receives either priority assistance or authority to begin construction, as a result of submitting an application for such assistance or authority on Form PD-200, if such application was accompanied by the form Applicant's Supplemental Certification and if such housing was not to be occupied by the owner;

(3) The additional housing accommodations created by remodeling or rehabilitation financed under Class 1 (b) of Title I of the National Housing Act;

(4) Housing financed under Class 3 of Title I of the National Housing Act for which an application was or is submitted to the local office of the Federal Housing Administration:

(i) Prior to February 10, 1943, and such application was accompanied by, or supplemented with, a War Housing Statement Form, or

(ii) On or after February 10, 1943, and the applicant also executes section B of Form PD-105 (revised 2-10-43) in connection with such housing;

(5) Housing financed with a mortgage loan insured by the Federal Housing Administration under section 603 of title VI of the National Housing Act for which an application was submitted to the local office of the Federal Housing Administration:

(i) Prior to February 10, 1943, and such application was accompanied by, or supplemented with, FHA Form 2004 (e),

or

(ii) On or after February 10, 1943;

(6) Housing financed with a mortgage loan insured by the Federal Housing Administration under section 608 of title VI of the National Housing Act; and

(7) The additional housing accommodations created by remodeling or rehabilitation in projects designated as "defense housing”, by either the Division of Defense Housing Coordination or the National Housing Agency, in order to exempt such housing from Federal Reserve Board Regulation W.

(b) For the purposes of §§ 702.1-702.4, private war housing is "begun" on the date of submitting to the Federal Housing Administration a properly executed application for priority assistance or authority to begin construction in connection with such housing; or, if remod

eling or rehabilitation of any private war housing did not receive priority assistance or authority to begin construction, such housing was "begun" either on the date a properly executed application was filed under title I, Class 1 (b), of the National Housing Act in connection with such housing, or on the date a properly executed application for exemption from Federal Reserve Board Regulation W was submitted to a registrant in connection with such housing.

(c) For the purposes of §§ 702.1702.4, the date of "completion" of any private war housing shall be the date upon which such housing is offered for initial rental or sale, or the date upon which such housing is first ready for immediate occupancy, whichever is later.

(d) The phrase "held for rental" includes only an ordinary landlord-tenant relationship or such a tenancy coupled with an option to purchase containing the following provisions:

(1) The tenant shall not be obligated to purchase and the option shall run only in behalf of the tenant;

(2) No payment shall be required in any one month in addition to the listed monthly payment while a tenant, which monthly payment shall not exceed the fair rental for the dwelling unit under an ordinary landlord-tenant relationship not coupled with an option to purchase;

(3) The monthly payment while a tenant shall not be in excess of rental for comparable accommodations;

(4) The total purchase price shall be a fair market price, or $6,000, whichever is lower;

(5) The option may not be exercised prior to the expiration of two months' occupancy;

(6) The option shall continue in effect for at least 30 months unless sooner exercised; and

(7) The occupancy and disposition provisions shall continue to apply to such housing after the option is exercised, or terminated, for the duration of the national emergency declared by the President on September 8, 1939.

CROSS REFERENCE: For Federal Reserve Board Regulation W, see Part 222 of Title 12.

§ 702.2 Persons who are eligible war workers. (a) For private war housing begun on or after February 10, 1943, an eligible war worker shall be only a per

son who qualifies under the provisions of Part 701 of this chapter.

(b) For private war housing begun prior to February 10, 1943, an eligible war worker shall be only a person who qualifies under the provision of the application (and other instruments related thereto) for priority assistance or authority to begin construction, FHA insurance, or exemption for Federal Reserve Board Regulation W submitted in connection with such housing; or, at the option of the owner of such housing, a person who qualifies under the provisions of Part 701 of this chapter. Private war housing for which applications for priority assistance were filed with the Federal Housing Administration before February 10, 1943, but for which quotas did not become available until on or after that date, shall not be approved after July 15, 1943, except subject to the rules applicable to private war housing so "begun" on or after February 10, 1943.

(c) The Joint Army-Navy-NHA Directive of July 16, 1942, is incorporated by reference in Part 701 of this chapter, which define indispensable in-migrant civilian war workers, who are eligible for private war housing begun on or after February 10, 1943. For private war housing begun prior to February 10, 1943, eligible war workers as defined in the standard application for such housing include "members of the armed forces". Hence members of the armed forces including convalescents as well as those on active duty, are eligible for such housing, as well as for reference (by War Housing Centers or other appropriate placement agency) to existing private structures programmed for war workers.

(d) The establishment of criteria of eligibility for occupancy of private war housing projects is not intended to exclude from such projects any persons currently occupying any Federallyowned or leased war housing projects under the jurisdiction or control of the National Housing Agency, or any FPHAaided public war housing units reserved for various types of war workers as to Occupancy or re-occupancy. Any persons, regardless of their occupation or their status as in-migrants, occupying the foregoing types of public war housing space are eligible for occupancy of any type of private war housing. Occupancy by such persons is subject to the same requirements as to rental, sale, dis

position, transfer, etc., as occupancy by other eligibles, for the types of private war housing involved.

§ 702.3 Length of time private war housing must be reserved for occupancy by eligible war workers. (a) Private war housing begun on or after February 10, 1943, shall be made available for initial occupancy, and for re-occupancy, only by eligible war workers: Provided, however, That at any time subsequent to 60 days after completion of such housing, the owner of such housing may petition the National Housing Agency to permit initial occupancy, or re-occupancy, as the case may be, by a person other than an eligible war worker, in accordance with §§ 702.10-702.13.

(b) Private war housing begun prior to February 10, 1943, shall be made available for initial occupancy, and for reoccupancy, by eligible war workers for at least the period of time after completion specified in the application (and other instruments related thereto) for priority assistance or authority to begin construction, FHA insurance, or exemption from Federal Reserve Board Regulation W submitted in connection with such housing. Whenever any such application (or other instruments related thereto) provided for an exclusive preference to eligible war workers for a specified time, such exclusive preference shall be so given for at least such specified time; and whenever any such application (or other instruments related thereto) provided for merely a general preference to eligible war workers, at least such general preference shall be so given for at least such specified time.

§ 702.4 Disposition of private war housing. (a) Private war housing begun on or after February 10, 1943, shall be held for rental only to eligible war workers for the duration of the national emergency declared by the President on September 8, 1939, and, except for involuntary transfers, shall be disposed of only as follows:

(1) (i) An occupant, after two months' occupancy, may purchase the private war housing unit occupied by him subject to §§ 702.10-702.13.

(ii) Without conforming to (i) which precludes selling except at the option of the eligible war worker exercised after at least two months' rental occupancy, a dwelling unit in a private war housing project may be held for sale or sold to

an eligible war worker as provided in §§ 702.10-702.13; Provided, That any sale so made shall take place not later than 15 days after the Federal Housing Administration makes its final Priority Compliance Inspection Report ("Completion Report") with respect to the unit (after which time the unit if not sold shall be held for rental as indicated in (i)): And provided further, That no owner shall sell more than onethird of the units in all projects (begun on or after February 10, 1943) which he has placed under actual construction in any war housing area except such sales as are made in conformity with the requirement of holding for rental as indicated in (i): And provided further, That any sale made pursuant to (ii) shall be within a price range for the general types of units intended to be sold which is acceptable to the National Housing Agency. The proposed price range shall be submitted to the Federal Housing Administration in advance of sale by letter or other appropriate method, and in the case of all PD-105 applications filed on or after August 1, 1943, shall be submitted with the application.

(2) A person who will not himself occupy such housing may purchase or otherwise acquire such housing at any time, in accordance with §§ 702.10702.13, provided the occupancy and disposition limitations applicable to such housing prior to such purchase or acquisition shall continue to be applicable to such housing after such purchase or acquisition.

(3) An eligible war worker under Part 701 of this chapter may himself build, own and occupy a private war housing unit suitable to his needs, without complying with the rental requirements, as provided in and subject to the provisions of § 702.11 (a). Or,

(4) At any time subsequent to 60 days after completion of any such housing, the owner of such housing may petition the National Housing Agency, in accordance with §§ 702.10-702.13, to permit such housing to be disposed of otherwise than as provided above in this paragraph.

(b) Private war housing begun prior to February 10, 1943, shall be rented, sold, or transferred only in accordance with the provisions of the application (or other instruments related thereto) for priority assistance, authority to begin construction, or exemption from Federal

Reserve Board Regulation W submitted in connection with such housing, except that whenever any such application for priority assistance or authority to begin construction provided that such housing could be disposed of, with the prior approval of the War Production Board, otherwise than as stated in such application, a prior approval by the National Housing Agency (instead of by the War Production Board) shall be required in order to dispose of such housing otherwise than as stated in such application. Sections 702.10-702.13 set forth the provisions regarding the disposition of such housing.

METHODS OF DISPOSITION OF PRIVATE WAR HOUSING

AUTHORITY: §§ 702.10 to 702.13, inclusive, issued under 54 Stat. 676, as amended; 50 U.S.C. App., Sup., 1152. E.O. 9024, 9040, 9125, 9335; 3 CFR Cum. Supp. WPB Preference Rating Orders P-55-a, 8 F.R. 2260, P-55-b, 8 F.R. 4705; WPB Directive 25, 8 F.R. 8801.

SOURCE: §§ 702.10 to 702.13, inclusive, contained in NHA General Order 60-3C, Administrator, Jan. 6, 1944, effective Nov. 12, 1943, 9 F.R. 247.

§ 702.10 Definitions. (a) As used in §§ 702.10-702.13, the following terms are defined as follows:

(1) "Private war housing," "begun," "completion," and "held for rental" shall have the meaning ascribed to them in §§ 702.1-702.4;

(2) "Sale price" means the total consideration paid by the purchaser for the dwelling unit described in the priority application as approved, excluding those incidental charges which a purchaser of real estate customarily assumes in the community where the real estate is located;

(3) "Shelter rent" shall have the meaning ascribed to it in § 702.26 (c); (4) "Tenant services" shall have the meaning ascribed to it in § 702.26 (d);

(5) "Room" means only a living room, dining room, sleeping room, or kitchen, except that a kitchenette or dinette is considered as one-half room each.

§ 702.11 Disposition of private war housing. (a) For the duration of the national emergency declared by the President on September 8, 1939, (Proc. 2352; 3 CFR Cum. Supp.) all private war housing begun on or after February 10, 1943 shall be held for rental to eligible war workers as provided in

§§ 702.1-702.4, at the payments specified in the application for priority assistance or authority to begin construction submitted in connection with such dwelling units, which total monthly payments (unless otherwise authorized in § 702.12) shall in no event exceed $50 per month shelter rent per unfurnished dwelling unit plus a reasonable charge for tenant services (in no event, exceeding $3 per month per room), plus a reasonable price for garage space, plus the actual cost on a pro rata basis of tenant gas and electricity; and, except for involuntary transfers, shall be disposed of only as follows:

(1) (i) A dwelling unit in a private war housing project may be purchased by an occupant (initial occupant or reoccupant) after two months' continuous occupancy by such occupant.

(ii) Without conforming to (i) which precludes selling except at the option of the eligible war worker occupant exercised after at least two months' rental occupancy, a dwelling unit in a private war housing project may be held for sale or sold to an eligible war worker: Provided, That any sale so made shall take place not later than 15 days after the Federal Housing Administration makes its final Priority Compliance Inspection Report ("Completion Report") with respect to the unit (after which time the unit if not sold shall be held for rental as indicated in (i)): And provided, further, That no owner shall sell more than one-third of the units in all projects (begun on or after February 10, 1943) which he has placed under actual construction in any war housing area except such sales as are made in conformity with the requirement of holding for rental as indicated in (i), And provided, further, That any sale made pursuant to (ii) shall be within a price range for the general types of units intended to be sold which is acceptable to the National Housing Agency. The proposed price range shall be submitted to the Federal Housing Administration in advance of any sale by letter or other appropriate method, and in the case of all PD-105 applications filed on or after August 1, 1943 shall be submitted with the application. Any sale, either with or without prior rental occupancy, is subject to the conditions that:

(a) The sale price (except as provided in § 702.12) is not in excess of the fair

market price thereof, or $6,000, whichever is lower,

(b) The purchaser is an eligible war worker under the provisions of Part 701 of this chapter, and

(c) The owner submits to the National Housing Agency regional representative, through the local office of the Federal Housing Administration, an agreement in the prescribed form (Form NHA 60–1), properly executed by the purchaser, stating that such purchaser will continue to occupy the dwelling unit or will hold the dwelling unit subject to all occupancy and disposition provisions set forth in §§ 702.1-702.4.

A sale may be made under this paragraph (a) (1) without obtaining further approval from the National Housing Agency, provided the above-mentioned Form NHA 60-1 is submitted to the National Housing Agency regional representative, through the local office of the Federal Housing Administration, immediately following such sale.

(2) Any such housing may be transferred to a person who will not occupy any part of such housing as his (or her) own dwelling, if

(i) The sale price (except as provided in § 702.12) of each dwelling unit in such housing is not in excess of the fair market price thereof, or $6,000, whichever is lower, and

(ii) The transferor submits to the National Housing Agency regional representative, through the local office of the Federal Housing Administration, an agreement in the prescribed form (Form NHA 60-1), properly executed by the transferee, stating that such transferee will hold the premises subject to all occupancy and disposition provisions set forth in §§ 702.1-702.4.

A transfer may be made under this paragraph (a) (2) without obtaining further approval from the National Housing Agency, provided the abovementioned Form NHA 60-1 is submitted to the National Housing Agency regional representative, through the local office of the Federal Housing Administration, immediately following such transfer.

(3) An eligible war worker under Part 701 of this chapter may file an application for priority assistance for a private war housing unit suitable to his needs, and upon approval of such application may build, own and occupy such unit without conformity to rental re