WELLINGTON HOUSING

Auckland Star, Volume LXIX, Issue 165, 15 July 1938, Page 13

WELLINGTON HOUSING

CITY COUNCIL PROPOSAL

GUARANTEEING MORTGAGES,

" (Prom Our Correapond««nt.) WELLINGTON, Thursday. The Wellington City Housing Bill, presented in draft form to the City Council last night, was adopted in face of strong criticism by Labour councillors. Under the bill, the council proposes to guarantee housing mortgages in part and to combine with financial institutions in advances for housing purposes. The mortgaged land must be in the city. The advance must not exceed 90 per cent of the valuation approved by the council. The limit of the amount to* be advanced on any single mortgage is £1350, plus 1 per cent for insurance. The period of the mortgage is not to exceed 30 years. The council's share of the advance is to be up to 22J per cent of the valuation and the mortgagor will find 10 per cent. These amounts may be varied if the mortgagor finds more money. The council and the financial institution must in respect of each mortgage arrange how repayments of principal are to be apportioned to the various amounts advanced. As an alternative to joint advances, the council can guarantee these loans up to one-third of 90 per cent of the valuation approved by it. The council may borrow up to £50,000 _by way of special loan to make advances out of the district fund for losses on guarantees, to meet guarantees in the first place, or to make advances to financial institutions.

Advances to owners for improvement and repair of buildings may be made by the council with the consent of mortgagees. Such advances are to be made only when the building can be made fit for habitation, and such advances when made become a first charge on the land prior to the mortgage.