new Commission will not be reviewing commission-initiated appeals, it is unlikely that the new Commission will need to meet more than twice a week. Subsection 101 (d) establishes the quorum requirement for the lawful transaction of business at five. At least two public, one tenant, one landlord must be present along with another member in order to transact business. The Council believes that a quorum should constitute a majority of the membership and that their rationale for the proportionate breakdown as outlined in subsection 101 (a) should be applicable in the quorum requirements. Subsection 101 (e) establishes two offices within the Commission: the Chairman and Vice-Chairman. Both officers shall be selected from among its public members. The Council intended that public members should preside over sessions of the Commission. This was to increase the effectiveness of the arbitration process by reducing the possibility of the natural bias which may ensue under landlord or tenant members presiding. SECTION 102-DUTIES OF COMMISSION Subsection 102(a) outlines the Commission's responsibilities and duties. Basically the Commission will establish the rules for administering the rent stabilization program. Additionally, it will review appeals from the Rent Administrator. The provision has caused some concern among the public, for the Commission is no longer involved in the initial decision of cases. The new Commission will be a policy making and appeal agency. While some members of the public supported transferring to the new Commission the authority now vested in the Housing Rent Commission, other members of the public wanted the appellate function to be vested with the courts alone. The Council supports a compromise position which divides administrative and quasi-judicial functions between the Rent Administrator and the Commission. It is the conviction of the Council that such a division of powers represents optimum regulatory procedure which is standard in most regulatory agencies, including the D.C. Commission on Human Rights and rent commission in neighboring jurisdictions. It should be noted that the Commission's appeal and review functions will provide it with first hand information for its rule making and policy determination role. Subsection 102(b) requires the Commission to submit to the Council every six months a report on trends, including tax, operating and maintenance cost within the District and to recommend any changes in the formula for computing the rent ceiling. The Council felt that its responsibility for oversight would be facilitated and it may expeditiously initiate action to amend the legislation should such be deemed appropriate because of some drastic and unforeseen economic shifts. Subsection 102 (c) authorizes the Commission and explicitly the Rent Administrator, to hold hearings, administer oaths, and subpoena whatever data or witnesses the Commission deems advisable. It also empowers the Superior Court to enforce subpoenas and punish persons for failure to comply. The Council felt that the timely procurement and certification of information was imperative to the expeditious processing of petitions filed by landlord and tenant. Subsection 102 (d) authorizes each entity of the District government to supply assistance and information directly to the chairman of the Commission. The Council, while not intending to cause excessive burdens to other agencies, did wish to have the Commission function as effectively as possible without bureaucratic liaison agents. SECTION 103-RENTAL ACCOMMODATIONS OFFICE Subsection 103(a) establishes a new agency of the District of Columbia Government within the executive office of the Mayor. It also creates the post of Rent Administrator. The Administrator will be the principal executive officer of the new agency and will be appointed by the Mayor. The Council felt that the Mayor would not be able to effectively implement his strong support for rent control and the new legislation if the agency remained as an independent entity. Subsection 103(b) requires that the Rent Administrator be a resident of the District and that he receive compensation at a rate no less than GS-15 under the General Schedule under section 5332 of Title 5 of the United States Code. The Council felt that it was mandatory to have a high level administrator in order to expeditiously facilitate the administrative procedures of the new legislation. The recent court decision on Regulation 74–20 underscored the necessity to expeditiously provide remedies for petitioners to the Commission. SECTION 104-DUTIES OF THE RENT ADMINISTRATOR Subsection 104(a) directs the Rent Administrator to carry out the Rent Stabilization Program according to the rules and procedures established by the Commission. Subsection 104(b) authorizes the Rent Administrator to hire legal counsel and other employees or consultants as necessary within budget constraints, and specifically delineates the authority to do so under the U.S. Code. The Council wanted to provide adequately for the implementation of one of the major functions of the Rent Administrator--assurance of compliance by landlords and tenants with the rent stabilization provisions through spot checks and other investigations. This would allow sufficient flexibility in the staff allocations. TITLE II-RENT STABILIZATION PROGRAM SECTION 201-DEFINITIONS Subsection 201 (a) defines the Council of the District of Columbia for purposes of this act. Subsection 201 (b) defines Mayor of the District of Columbia for the purposes of this act. Subsection 201 (c) defines "base rent" as rent charged on February 1, 1973 or last rent charged between January 1, 1972 and February 1, 1973 (if not rented on that date) or an appropriate rent determined by the Rent Administrator (if not rented during previous year or if rent charged during that period cannot be determined). This definition shall be adhered to during the entire act as provided in subsection 204(d). Subsection 201(d) defines "capital improvement" as a permanent improvement or renovation other than ordinary repair, replacement or maintenance continuing for twelve months or longer. It was the intent of the Council that normal replacements and proper maintenance should clearly be delineated as that ongoing effort of landlords to keep dwellings in compliance with the housing code. Subsection 201(e) defines the term "housing accommodation" as a structure or building within the District of Columbia containing one or more rental units with 60 percent or more of its rental units within used for residential nontransient occupancy. Subsection 201 (f) defines the term "housing regulations" as the Housing Regulations established by the Commissioner Order dated August 11, 1955 as amended. Subsection 201(g) defines "initial leasing period" as that period in which the first tenant of a new accommodation, or one substantially rehabilitated, occupies and rents it. Subsection 201 (h) defines "landlord" using the standard definition. while adding thereto all possible nuances of the definition which could cover any entity receiving or entitled to receive rents or benefits for the use or occupancy of rental units. The Council felt that this definition should be all inclusive in order that there be no loopholes for any bonafide housing business operator to circumvent the provisions of the act. Subsection 201 (i) gives the standard definitions of "person". Subsection 201 () defines "related facility" as any furnishing or equipment available to tenants, the use of which is included in the rents. Subsection 201(k) defines "related services" as those in the rental agreement, required by law or provided by landlord, and paid for in the rent. Subsection 201 (1) defines "rent" in its broadest meaning to include any consideration of value in exchange for the use or occupancy of a rental unit. Subsection 201 (m) defines "rental unit" as any type of apartment, room, single family house or duplex which is rented or offered for rent for residential occupancy. It also specifically excludes those structures used primarily for transient occupancy. Subsection 201 (n) defines "market value" as the purchase price paid by the landlord or that value determined by the Mayor for assessment purposes, whichever is greater. Subsection 201 (o) defines "assessed market value" as the estimated market value of a housing accommodation as determined by the Mayor for property assessment purposes. Subsection 201 (p) defines "substantial rehabilitation" as any improvement or renovation begun after February 1, 1973, the cost of which improvement is 50 percent or more of the market value of the accommodation. Subsection 201 (q) defines "tenant" as including a tenant, subtenant, lessee, sublessee, or other person entitled to the possession, occupancy or the benefits of any rental unit. The intent of the Council was to insure that every individual who rented property for residential use would be protected by the provisions of the act. Subsection 201 (r) defines "maximum possible rental income" as the sum of rents for all rental units (occupied or not) as of the date of filing the registration statement. The Council wanted to specifically include all possible income from rental in the rate of return formula in order to more realistically assess the income and income potential. Subsection 201 (8) defines "vacancy loss" as the amount of rent not collected due to vacant units. The Council wanted to insure that units not offered for rent or occupied by the landlord or his employees be excluded so as not to improperly inflate losses in the rate of return formula. Subsection 201(t) defines "uncollected rent" as the amount of rent or other charges due but not collected. Deducted from this amount is any such amounts due for which the landloard has failed to attempt to recover through appropriate legal channels after having ample opportunity to do so. The Council wanted to insure that uncollected rents as a proper operating loss item in the rate of return formula would not be improperly inflated by amounts for which no reasonable attempt to recover such had been made. Subsection 201 (u) defines "operating expenses" as the normal expenses for the upkeep of the rental accommodation for any consecutive 12 month period in the 15 months immediately preceding the filing of the registration statement. Subsection 201 () defines "management fee" as the amount paid to a managing agent and any pro rata salaries paid to off-site administrative personnel. Subsection 201 (w) defines "property taxes" as the amount paid to the District of Columbia Treasurer for real property tax on the housing accommodation. This is a legitimate expense item in the computation of the rate of return. Subsection 201 (x) defines "other income which can be derived from the housing accommodation" generally as all other types of income other than the gross rental charge which a landlord earns by virtue of his ownership of the accommodation. These income items are legitimate income items in the computation of the rate of return. SECTION 202-REGISTRATION AND COVERAGE Subsection 202 (a) —Sections 203-212 of this act applies to all rental units except the following: 1. rental units in health care, personal care homes and hospitals; (to eliminate medical care institutions) 2. federally owned units or units in which the mortgage or rents are subsidized; (federal regulations prohibit controls on such properties) 3. a unit for which the initial certificate of occupancy was issued after February 2, 1973 (to stimulate new construction because the Committee originally intended to exempt all new construction) 4. any dormitory of an institution of higher education and private boarding schools where rooms are provided for students; (to specifically eliminate institutional residences) 5. any rental unit in an owner or renter occupied residence containing not more than two rental units; (to eliminate small units which are generally not primarily operated as a housing business) 6. units in housing accommodations which have been vacant and unoccupied for two years preceding the enactment date if such accommodation is in compliance with the housing regulations; (to encourage the utilization of boarded up housing in increasing the rental housing stock). Additionally, the Council intended that administrative workload of the Rental Accommodations Office would be significantly reduced by these aforementioned exclusions. Subsection 202 (b) requires registration of unregistered accommodations within 90 days after the effective date of the act. A registration statement is required to be filed for every housing accommodation within the District of Columbia irrespective of the applicability of any other provision of the Act to the housing accommodation. Paragraph one (1) requires a complete description of property along with the housing business license and occupancy permit numbers and dates. Paragraph two (2) requires a description of the utilities including air conditioning and heating fuel. Paragraph three (3) requires rental information (local occupancy fee charged, amount of security deposit, related service included and related facilities and charges) that obtained on the base rent date. Paragraph four (4) requires the information required in paragraph 3 that obtains on the registration date. Paragraph five (5) requires information on rental units that have been substantially rehabilitated (market value prior to rehabilitation, method of market value computation, description of rehabilitation and an itemized list of expenditures). Paragraph six (6) requires the same information as stated in paragraph (5) on rental units for which substantial rehabilitation is planned. Additionally, it requires a description of the proposed rehabilitation. Paragraph seven (7) requires information on the market value prior to capital improvement, a list of capital improvements and an itemized list of expenditures for all capital improvements allowed under section 205 of this act. Paragraph eight (8) requires a list of outstanding violations of the housing regulations applicable to the registered accommodation. Paragraph nine (9) requires inclusion of the name and address of the owner and, when applicable, the resident agent. Paragraph ten (10) requires the information necessary for the Rent Administrator to easily and accurately compute the rate of return according to subsection 204 (a). Paragraph eleven (11) requires the rate of return for that housing accommodation as computed by the landlord according to the formula in subsection 204 (a). Subsection 202 (c) requires landlords to certify that there have been no changes in the information required on the previous registration statements or, when applicable, to correct such statements quarterly by sworn addendum. Upon the occurrence of any change which would |