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Show Area Director Invites Landlords To IF He For Adjustments Under Rent Law The Price Area Rent office is now ready to receive landlords' Requests for rent adjustments under the fair net operating income in-come provision, announced Rent Director Fred E. Ray this week. "We are fully prepared to help . landlords apply for this entirely new type of rent adjustment which Congress wrote into the . Housing and Rent Act of 1949," the Area Rent Director said. - 'Landlords may now obtain the - new petition 'lOftn and other information in-formation which will be helpful in preparing their petitions at the Price Area Rent Office. Room 8, City Hall, Price, Utah. Under the new provision, the owner of a building containing .4 or less dwelling units may get an adjustment if his net operating operat-ing income is less than 25 per .cent of his gross income. He will be granted an increase to bring his net operating income un to 30 per cent. An owner of a large . structure (5 or more dwelling units) is entitled to an adjustment, adjust-ment, if his net operating income Is less than 20 per cent of gross income. The increase will be sufficient to bring the net operating oper-ating income up to 25 per cent. When granted, the adjustment is effective from the date the petition pe-tition was filed. ' Net operating income. Mr. Ray said, is the amount of rental income in-come left after payment of operating oper-ating expenses and an allowance for depreciation. Amone: the expenses ex-penses which the landlord mav show are the cost of fuel and utilities furnished, payroll, janitorial jan-itorial materials, real estate tax- es, insurance and interior painting paint-ing and decorating. An allowance allow-ance for depreciation also may be shown in the expenses for the year, as well as a portion of the cost of repairs and replacements. These are not chargeable to a single year, but allocated over the period of years they normally normal-ly last. Mortgage payments and interest on a mortgage may not be included as expenses. Mr., Ray explained that the new Vadjusihierrt provision also replaces two adjustment grounds, which hundreds of Duchesne county landlords have used in the past to get needed rent adjustments. ad-justments. These are the hardship hard-ship and operating-at-a-loss adjustment ad-justment provisions of the 1948 and earlier rent control acts. A simple petition form will be used in applying fo the rent increases. in-creases. Landlords will find every step in completing the form well explained, right on the form itself. Expense figures are to be furnished for a single "test" year selected by the landlord. land-lord. This may be the most reccut full calendar or fiscal year, or any consecutive 12 months ending end-ing within 90 days of the date of filing the petition. |