142 F.2d 566 | Emer. Ct. App. | 1944
In October, 1941, complainant bought a brick apartment building in Tulsa, Oklahoma. His rentals became subject to Maximum Rent Regulation No. 45 for the Tulsa Defense-Rental Area. This regulation was issued August 20, 1942, to become effective September 1, 1942, and established March 1, 1942, as the rent freezing date. 7 F.R. 6641.
Complainant also bases his claim for relief upon another adjustment provision covering the situation where, subsequent to the maximum rent date, the landlord had made a “major capital improvement” as distinguished from ordinary repair, replacement and maintenance. See OPA Rent Interpretation 4(d)-I, Pike & Fischer OPA Service, p. 200:1251. It appears that between March 1, 1942, and July 1, 1942, complainant made certain expenditures as follows: At a cost of $145.00 all the mortar in the joints of the brickwork on the front of the building was removed and the same repointed with mason cement for the purpose of waterproofing the building; a new roof was installed upon the building at a cost of $98.31; the old awnings were replaced with new ones at a cost of $59.25; the sign on the front of the building was replaced and four new mailboxes were installed for the use of the tenants, at a cost <of $27.48; all outside openings were caulked, the exterior wood trim was painted, a brick curb was built across the back of the building and the grounds around the building were packed and graded so as to divert the water that runs down from a high bank at the rear of the building, the interior of one apartment unit was pretty completely redecorated, in another apartment unit the ceiling of the kitchen was repainted and damaged places around the dormer window in the living room were repainted, all at an aggregate cost of $224.-72. This item of $224.72 is not further broken down in the record except that it appears that the cost of redecorating the one apartment unit amounted to $72. The total expenditure for all the items mentioned amounted to $554.76.
What amounts to a “major capital improvement” is a question of fact and a matter of degree. The Administrator has conceded that a complete rehabilitation involving a general modernization and reconstruction of a property may, if it makes the property attractive in a different rental range, constitute a major capital improvement, within the meaning of the regulation, even though the individual items involved would, if considered separately, be normal repair, replacement and maintenance. See Gale Realty Corp. v. Bowles, Em.App.1943, 139 F.2d 496, 498.
In considering a protest against an order of an area rent director denying a petition for adjustment the Administrator must make a new appraisal of the case
“Without commenting upon the evidence in the record in detail, it is the opinion of the Regional Administrator that such evidence supports the determination by the Area Rent Director that the character of the housing accommodations in issue were not changed substantially between the maximum rent date and the effective date of the Regulation by a major capital improvement as distinguished from ordinary repair, replacement and maintenance.”
Upon the authority of Smith v. Bowles, the order denying complainant’s protest is set aside and the case is remanded to the Price Administrator with directions to reconsider the protest and to make such disposition of it as on the whole record may be appropriate and just.
The regulation was subsequently redesignated Rent Regulation for Housing, 8 F.R. 7322.