Owned War Housing

Purpose.

Responsibilities with respect to dispo-
sition.

Consultation with local governments.
General policies.

Preferred purchasers; general.

1.6 Preferred purchasers; order of prefer

CROSS REFERENCE: For operating procedures with respect to the war housing and veterans' emergency housing programs, see Parts 340 and 350 of Subtitle B of this title.

AUTHORITY: §§ 1.1 to 1.16 issued under sec. 11, 54 Stat. 1128; 42 U. S. C. and Sup., 1548. SOURCE: §§ 1.1 to 1.16 appear at 13 F. R. 8261, 8386.

§ 1.1 Purpose-(a) General. The regulations in this part provide for the disposition of permanent war housing acquired or constructed under the Lanham Act, as amended (54 Stat. 1125, as amended; 42 U. S. C. Sup. 1521), Public Law 781, 76th Congress, and Public Laws 9, 73, and 353, 77th Congress (Temporary Shelter Acts) (55 Stat. 14, 198, 818), except that it shall not apply to housing provided under the Homes Use Conversion Program.

(b) Veterans' preference. It is the purpose of this part to prescribe the conditions under which permanent war

larly the preference to be given veterans and servicemen, and their families, in the disposition of such housing.

§ 1.2 Responsibilities with respect to disposition—(a) Termination. The Office of the Administrator shall determine when permanent projects or parts thereof are no longer needed in the interest of the orderly demobilization of the war effort and will then terminate such projects or parts thereof, thereby making them available for disposition.

(b) Execution. The Public Housing Administration shall be responsible for executing the disposition program, in accordance with applicable laws and the regulations in this part, and subject to the direction and supervision of the Administrator.

§ 1.3 Consultation with local governments (a) General. Formal discussions with representatives of local governments regarding disposition problems shall be initiated sufficiently in advance of the disposition of projects in their localities so that local governmental agencies will have adequate prior opportunity to study such problems, reach agreements within the community, and prepare recommendations regarding disposition programs. Where more than one unit of local government is affected by the disposition, joint consultation shall be sought.

(b) FHA participation. The FHA State or District Office serving the locality shall be informed concerning disposition discussions and plans and shall be invited to participate in the discussions with the local governments with respect to the formulation of locality disposition programs.

(c) Local recommendations. The Public Housing Administration shall follow the recommendations of the representatives of the local government insofar as practicable, subject to the provisions of applicable law, the policies stated in this part, and considerations of an equitable return to the Government.

§ 1.4 General policies—(a) Termination. Permanent war housing projects or parts thereof shall be terminated as rapidly as possible. No exceptions to termination shall be permitted to continue unless approved by the Administrator.

(b) Timing and disposition. All terminated permanent war housing shall be disposed of as rapidly as possible consistent with the public interest, the obtaining of an equitable return of the Government's investment, and with the other policies established by the regulations in this part.

(c) Disposition for private residential purposes. In accordance with the Lanham Act, as amended, permanent war housing shall (subject to the provisions of paragraphs (e) and (f) of this section) be sold for private residential purposes.

(d) Subdivision of projects. In order to encourage home ownership, and facilitate participation in the disposition program by small investors, projects being offered for sale shall be subdivided into the smallest feasible units of sale consistent with a practicable plan for their disposition.

(e) Transfers to Army or Navy Departments. Under section 4 of the Lanham Act, as amended, the Administrator may, in his discretion, upon the request of the Secretaries of Army or Navy transfer to the jurisdiction of the Army or Navy Departments such war housing as may be considered to be permanently useful to the Army or Navy. Such transfers shall be made only (1) if the request therefor was made on or before July 1, 1947, and (2) if the project is situated within the proximate vicinity of a permanent Army or Navy establishment.

(f) Local community requests for low rent use. Section 4 of the Lanham Act, as amended, provides that housing projects constructed under that Act shall not, unless specifically authorized by the Congress, be conveyed to any public or private agency organized for slum clearance or to provide subsidized housing for

persons of low income. Where the governing body of the community has requested, on or before July 1, 1947, that any such project be made available to the community for low rent housing purposes, the Public Housing Commissioner may temporarily reserve the project from other disposition. Such requests, together with the recommendation of the Public Housing Commissioner, shall be transmitted to the Administrator who will determine whether the projects shall be further reserved.

§ 1.5 Preferred purchasers; general. Whenever feasible, dwellings shall be offered for sale to persons who intend to occupy the dwellings (or to groups, including corporations, composed of such persons), with preference to veterans as hereinafter provided, prior to their being offered for sale to purchasers for investment purposes. Such persons intending to occupy the dwellings shall be treated as preferred purchasers under the regulations in this part. A person who desires to purchase a multi-family dwelling containing no more than 4 dwelling units and who intends to occupy one of the units shall be deemed to be a preferred purchaser. Preferred purchasers shall be given an opportunity to purchase the dwellings at fixed prices determined, with the cooperation of the Federal Housing Administration, on competent appraisal on the basis of the long-term value of the dwelling (including the land, appurtenances, utilities and facilities allocated thereto); except that, whenever the preferred purchaser is a veteran buying a dwelling containing not more than 4 family dwelling units, the purchase price shall not exceed the apportioned cost of such dwelling and of the land and appurtenances allocated thereto, together with the apportioned share of the cost of all utilities and other facilities provided for and common to the project of which such dwelling is a part.

§ 1.6 Preferred purchasers; order of preference-(a) Preference classes. Preferred purchasers shall be classified in the following order of preference:

Class 1. A veteran who occupies a dwelling unit in the dwelling to be sold and intends to continue to occupy such unit.

Class 2. A veteran who intends to occupy a dwelling unit in the dwelling to be sold.

Class 3. A non-veteran who occupies a dwelling unit in the dwelling to be sold and intends to continue to occupy such dwelling unit.

The Public Housing Administration is further authorized, where it finds it is in the public interest to do so, to establish a Class 4 preference group to consist of non-veterans intending to occupy dwelling units in the dwelling to be sold.

(b) Sub-classes. Where necessary to afford equitable treatment to tenants who are displaced from the dwellings they occupy as a result of the application of the provisions of paragraph (a) of this section, or where otherwise appropriate, the Public Housing Administration is authorized to establish special preference classifications within each preference class.

§ 1.7 Preferred purchasers; sales procedure-(a) General. Veterans and other occupants of each project shall be given as much advance informal notice as is feasible concerning the proposed method and the approximate date of disposition of the project. In general, sales procedures shall be designed, through public notice and such other procedures as the Public Housing Administration may find appropriate, to provide adequate opportunity to preferred purchasers to exercise their preference rights.

(b) Separate sales of dwellings containing one to four family dwelling units. Procedures covering the separate sale to preferred purchasers of dwellings which contain 1 to 4 dwelling units shall provide for time schedules in which preferred purchasers may register their intent to purchase, for appropriate deposit of earnest money, for selection of units, and for making of final commitments to purchase. Such procedures shall be established with a view to facilitating the disposition of war housing as rapidly as practicable, consistent with giving preferred purchasers an adequate opportunity to participate in the disposition program and consistent with the other policies provided for by the regulations in this part. Toward this end, such procedures shall (1) provide a minimum period of not less than 30 days in which preferred purchasers in Class 1 may exercise (through registration of intent to purchase or other appropriate means prescribed by the Public Housing Ad

ministration) their preference right; (2) provide a maximum period not exceeding 80 days in which preferred purchasers may exercise their preference rights; and (3) provide that preferred purchasers in any class shall continue to have preference over members in a class of lower preference status for any available dwelling units during the period or periods in which members of the classes of lower preference status shall have the right to exercise their preference rights.

(c) Sale of multi-family dwellings containing five or more dwelling units, and group sale of dwellings. (1) Where it is not feasible or consistent with a practicable plan of disposition, or with the effectuation of the purposes of the preference provisions of § 1.6 and this section, to subdivide a project for the separate sale to individuals of dwellings in the project, adequate opportunity may be given, as provided in subparagraph (2) of this paragraph, to groups of preferred purchasers to purchase a multifamily dwelling, a group of dwellings, or an entire project, consistent always with a practicable plan for disposition of the project.

(2) If within 30 days following the announcement of the prices of the multifamily dwelling, group of dwellings, or project being offered, a group composed of preferred purchasers in sufficient number to occupy a reasonable percentage of the dwelling units involved, submits a plan of purchase acceptable to the Public Housing Administration, which plan shall be accompanied by an earnest money deposit prescribed by the Public Housing Administration and provide a reasonable time schedule for the completion of the purchase in relation to the number of dwelling units involved (which time period shall in no event exceed 6 months following the end of the original 30 days offering period), the multi-family dwelling, group of dwellings, or project, as the case may be, shall be reserved from other disposition for the period covered by the time schedule in order to give the preference group an opportunity to complete the purchase. Such reservation shall be conditioned on the adherence to the time schedule accepted by the Public Housing Administration. The original reservation period may be extended only with the approval of the Administrator.

(d) Competing preference purchasers in same preference class. The Public Housing Administration shall provide an equitable method for selecting the purchasers, which shall be designed best to effectuate the order of preferences provided in § 1.6, to apply where preferred purchasers (or groups of preferred purchasers) in the same preference class or containing members in the same preference class compete with each other.

§ 1.8 Sales to non-preferred purchasers. Sales to other than preferred purchasers shall be on a competitive basis after adequate public advertisement.

§ 1.9 Conditions of sale. Agreements to sell housing to private purchasers shall provide that the following policies be effectuated:

(a) Terms. All sales shall be for cash, with such financing as may be required to be secured in the private financing market under the provisions of section 610 of the National Housing Act (Public Law 366, 80th Congress) or otherwise.

(b) Eviction of existing occupants. The right of the purchaser to evict an existing occupant shall be subject only to applicable Federal, State, and local laws, except that for a period of one year from the date of the sale no such occupant shall be evicted without having first been given 90 days' written notice to vacate. However, such notice is not required in cases of evictions where the tenant is committing a nuisance or otherwise violating an obligation of his tenancy.

(c) Rents. Rents shall be subject to control only under applicable Federal, State, or local laws.

(d) Prices in case of resale. For a period of one year after the date of original sale, no housing sold to preferred purchasers pursuant to the regulations in this part, may be resold for an amount in excess of the original sales price plus the actual costs of any improvements made, the amount of any normal and customary brokerage fees or commissions actually paid in connection with the sale being made, and the costs of transfer paid by the seller.

(e) Veterans' preference in case of subsequent sale or rental. Until January 1, 1951, first preference in resale, rental or subrental of dwelling units shall be given to veterans (except that the resale preference shall not apply where 5 or

more dwelling units previously purchased by a non-priority purchaser under this regulation are being resold to one individual, association, partnership or corporation for other than occupancy by the purchaser). Such preference shall be deemed to be complied with only if the unit being sold or becoming available for rental is publicly offered in good faith for sale or rent to veterans for a period of at least 30 days at a sale or rental no higher than that at which it is later offered (or for which it is later sold or rented) to other than a veteran.

§ 1.10 Demountable housing—(a) Onsite sales. When sold for on-site use, demountable dwelling structures shall be disposed of in the same manner as other housing to which the regulations in this part apply.

(b) Off-site sales. Demountable structures to be sold for off-site use shall be transferred or sold to meet veterans' needs with the following order of preferences to purchasers: (1) Federal agencies, local public bodies, or educational institutions, (2) individual veterans, and (3) others who will purchase the housing in marketable quantities and remove and sell or rent the housing to veterans. When it deems such action to be in the public interest, the Public Housing Administration may alter the foregoing order of preference for the purpose of giving a first preference to individual veterans. The agreement of transfer or sale shall provide that transferees, purchasers, and subsequent owners shall give first preference to veterans in the sale or rental of the dwellings until January 1, 1951, and shall abide by appropri ate restrictions concerning resale prices, rents, and use of the dwellings.

§ 1.11 Disposition of non-dwelling structures. Non-dwelling structures located in projects containing permanent housing may be sold with the dwelling units or separate from the dwelling units dependent upon the effect of the sale of the non-dwelling buildings on the dwellings and the best financial interest of the Government.

§ 1.12 Vacant land. Any vacant land (including land improved only with minor structures) held in fee which is no longer needed shall be disposed of as expeditiously as possible. The Public Housing Administration shall make such inquiry among other Federal agencies as