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IN SHORT. THE COMMITTEE FEELS THAT AN AFFIRMATIVE CASE SHOULD BE MADE IN FAVOR OF DECONTROL OF RENTALS AND FAILING THIS9 IT WOULD OF NECESSITY9 RECOMMEND A CONTINUANCE OF CONTROL* YOUR COMMITTEE HAS HELD MEETINGS ON MAY 9, MAY 139 MAY 209 MAY 239 AND MAY 27. THESE MEETINGS VARIED IN LENGTH FROM 22 TO 2 HOURS. WE WERE THUS AFFORDED OPPORT— UNITY TO SOLICIT THE VIEWS OF PERSONS FROM VARIOUS WALKS OF LIFE AND FROM VARIOUS SECTIONS OF THE CITY9 AS WELL AS LAND- LORDS AND TENANTS9 WHITE AND COLORED. THESE PERSONS MADE STATEMENTS WITH RESPECT TO THE HOUSING SITUATION IN CHARLOTTES— VILLE AND ALSO WITH RESPECT TO THE NEED OF RETAINING OR DISCONTINUING RENT CONTROLS. IN ADDITION THEY OBLIGINGLY AND COURTEOUSLY RESPONDED TO QUESTIONS SUBMITTED BY MEMBERS OF THE COMMI TTEE. IN THE EXCHANGE OF VIEWS THE INFORMATION THUS OBTAINED WAS APPRAISED AND ABSORBED. IT WAS ALSO SUPPLEMENTED BY INFORMATION OBTAINED IN CONVERSATION WITH CITIZENS BETWEEN MEETINGS OF THE COMMITTEE AND FROM THE KNOWLEDGE OF MEMBERS OF THE COMMITTEE. THE COMMITTEE HAS BEEN AND IS CONFRONTED WITH A DIFFI— CULT TASK AND IT HAS NOT BEEN EASY TO ARRIVE AT A THOROUGHLY SATISFACTORY CONCLUSION. ON THE ONE HAND WE HAVE LEARNED MAJORITY REPORT OF MANY LANDLORDS WHO ARE SUBJECTED TO RATHER HARSH CONDITIONS BECAUSE OF RENT CONTROLS. THERE APPEAR TO BE A SUBSTANTIAL RENT CONTROL COMMITTEE NUMBER OF CASES WHERE LANDLORDS ARE DEPRIVED OF A REASONABLE RATE OF RETURN ON RENTAL PROPERTIES AND THIS FACT HAS NOT FAILED TO WIN SYMPATHETIC CONSIDERATION BY THE COMMITTEE. ON THE OTHER HANDp IT APPEARS THAT THERE IS AN ACTUAL SHORTAGE OF RENTAL HOUSING IN CHARLOTTESVILLE AND THAT SHORT— AGE IS PARTICULARLY ACUTE FOR PERSONS IN THE MIDDLE AND LOW INCOME BRACKETS. MIOREOVERI IT DOES NOT SEEM AT ALL PROBABLE THAT THERE WILL BE IN THE SHORT—RUN ANY SUBSTANTIAL AMOUNT OF RELIEF FOR THESE PERSONS. IT ALSO APPEARS THAT A CONSIDERABLE NUMBER OF PERSONS ARE NOVI OBTAINING RELIEF FROM THE CITY AND THAT THEIR NEED FOR ADDITIONAL RELIEF WILL BE INCREASED IF RENTALS ARE ALLOWED TO RISE. IT APPEARS AS A FACT THAT SO FAR AS RENTAL HOUSING IS CONCERNED A SELLER S MARKET HAS EXISTED AND CONTINUES TO EXIST IN CHARLOTTESVILLE. THAT AMOUNTS TO SAYING THAT THE DEMAND FOR RENTAL HOUSING SUBSTANTIALLY EXCEEDS THE SUPPLY. IT IS TRUE THAT THE SITUATION I S SOMEWHAT LESS ACUTE IN THIS RESPECT THAN IT WAS A YEAR AGO AND THERE 1S SOME REASON TO BELIEVE THAT THERE MAY BE SOME FURHTER EASING OF THE SITUATION. HOWEVER9 THE CONDITIONS OF A FREE MARKET DO NOT EXIST. IT IS THE OPINION OF THE COMMITTEE THAT AN EXCESS OF THE SUPPLY OF RENTAL HOUSING OF THREE PERCENT RELATIVE TO THE DEMAND IS ESSENTIAL TO THE EXISTENCE OF A FREE MARKETV 1. E.9 TO THE REMOVAL OF RENTAL CONTROLS. IT IS ALSO THE OPINION OF THE COMMITTEE THAT SUCH A CONDITION IS NOT LIKELY TO PREVAIL HERE IN THE NEAR FUTURE. AMONG THOSE HEARD BY THE COMMITTEE WAS A MEMBER OF THE RENT CONTROL ADV 1 SORY BOARD. FROM HIM WE LEARNED THAT THAT BOARD WAS SERIOUSLY CONSIDERING AN INVESTIGATION OF THE DESIRABILITY OF CONTINUING RENT CONTROLS WHEN IT LEARNED OF THE APPOINTMENT OF YOUR COMMITTEE. THIS IS A MATTER OF CONSIDERABLE IMPORTANCE IN VIEW OF THE FACT THAT SHOULD THIS COMMITTEE RECOM— MEND DECONTROL AND IF THAT RECOMMENDATION WERE ACCEPTED BY YOUR BODY AND APPROVED BY THE GOVERNOR OF THE CO;JiMONWEALTH 9 RENT CON— TROL WOULD BE DISCONTINUED IN CHARLOTTESVILLE ONCE FOR ALL. ON THE OTHER HANDS SHOULD THE RENT CONTROL ADVISORY BOARD RECOMMEND DECONTROL AND THAT WERE APPROVED BY THE HOUSING EXPEDITER, RENT CONTROL Its CHARLOTTESVILLE COULD BE LIFTED9 BUT SUBJECT TO THE RIGHT OF THE AUTHORITIES TO REIMPOSE IT IN CASE RENTAL INCREASES PROVED TO BE EXCESSIVE AND UNREASONABLE. THIS PARTICULAR POINT IS STRESSED BECAUSE OF THE FEELING OF THE COMMITTEE THAT RENTAL HOUSING CONDITIONS BEING 711 -IAT THEY ARE AT THIS TIME THE REK40VAL OF CONTROLS MIGHT WELL RESULT IN IMPOSITION OF UNREASONABLY HIGH RENTS ON PERSONS IN INCOME BRACKETS INADEQUATE TO BEAR THE ADDITIONAL LOAD. AFTER WEIGHING ALL THE FACTS MADE AVAILABLE TO THE COMMITTEE, AND WITH DUE CONSIDERATION OF THE HARDSHIPS PRESENT— LY IMPOSED UPON THE LANDLORDS BY RENTAL CONTROL AS WELL AS THE STATUS OF TENANTS WHICH IN MANY CASES IS DISTRESSING EVEN WITH RENTAL CONTROL S$ YOUR COMMITTEE HAS COME TO THE FOLLOWING CONCLUSION: THAT THE CITY SHOULD TAKE NO STEPS TO DISCONTINUE THE CONTROL OF RENTS AT PRESENT NOR UNTIL THERE IS A HOUSING SITUATION MORE NEARLY APPROXIMATING THAT OF A FREE MARKET• IF THE COUNCIL IS OF THE OPINION THAT THE QUESTION OF DECONTROL OF RENTALS REQUIRES FURTHER STUDY9 THEN IT IS RECOM— MENDED THAT THE RENT CONTROL ADVISORY BOARD BE REQUESTED TO INVESTIGATE THE NEED OF CONTINUANCE OF RENT CONTROLS IN THIS AREAL BECAUSE THAT BOARD COULDV IF IT SAW FIT TO RECOMMEND DECONTROL AND RENTS WERE IN FACT DECONTROLLED: RECOMMEND THE RESTORATION OF CONTROLS9 IF IT SHOULD APPEAR THAT IN THE MEANWHILE RENTALS HAD INCREASED EXCESSIVELY AND UNREASONABLY. FOX 9012%1:9 F L_ • •