More tenants in arrears

Press, 17 August 1979, Page 10

More tenants in arrears

PA Wellington An increasing number of present Housing Corporation tenants do not have the same responsible attitude towards paying rent that previous tenants had, the corporatkJn says in its annual report. The report suggests that pressure on low-income families to achieve a standard of living beyond their incomes could be a contributing factor.

Of the 3950 tenants in arrears at March 31, 3373 owed more than $lOO. This compares with 4039 owing more than $lOO at March 31 last year. Although more people are able to buy an exist-

mg tiome than uuiuie, tile emphasis remains on lending for new homes, the report said. During the year there were 22,093 applications for loans of which 17,040 were approved. Low-start repayments, introduced late in the previous year, were popular. The number of housing improvement loans increased substantially and the demand for refinancing mortgages decreased. “The emphasis remains on lending to those wanting their first home, but under a new policy the Government will no longer specify loan programmes for new and used housing. The corporation will now be free to adjust its lending patterns according to demand,” said the report. The Government’s decision to no longer specify the actual number of loans to be made for new and existing homes is an important change. It should give the corporation more flexibility to meet the wishes of its loan applicants. Overdue loan accounts to the corporation decre-

aseu oy airnosi 1800 compared with the previous year, even though the total number of mortgages increased by more than 3600. “However, there 'is no room for complacency,” said the report. Most of the decrease was at the lower end of the scale and was achieved largely by revising administrative procedures to ensure earlier and firmer control of overdue accounts. Compared with last year the mortgagors owing more than $250 increased from 1861 to 2247, and accounted for 70 per cent of the total owed. The corporation screened loan applications more closelv to ensure mortgage repayments could be met. During the year there were 103 forced sales approved either because of continuing serious default, or because the property was abandoned by the mortgagor. The policy for housing elderly persons needs reviewing and the corporation plans to begin the

task this year, said tne report. It appears the demand for pensioner rental flats is now being met in some areas, such as Wanganui and Christchurch, and what is needed is a selective allocation of pensioner units, particularly in smaller and country centres. *‘A need is developing to provide tenancies for elderly home-owners who need something more compact, but whose equity in their present home, together with their other resources, will not enable them to be rehoused in the usual way,” the report said. Since the scheme was introduced in 1950, 11,289 flats have been built. Recently the aim has been to build 800 flats annually and in the last year 752 were completed, with 616 under construction and finance for a further 194 was being approved. However, the report said the corporation believed that this policy required reviewing. More people are recognising the benefits of up-

grading their homes rather than buying a better home, a trend that the corporation is keen to encourage. In August, 1978, finance for home improvements loans was increased from $8.5 million to $11.5 million and this reflected the emphasis placed on making better use erf existing homes.