A BIG RUSH

Evening Post, Volume CVI, Issue 31, 6 August 1923, Page 8

A BIG RUSH

LOANS FOR THE HOMELESS

UNDER NEW SYSTEM.

Since last Wednesday'the State Advances Office in the' Government Buildings has been besieged by hundreds of people anxious to apply for loans for the purchase or erection of houses under the new amendment of the State Advances Act. So great has been the crush of the homeless that queues have had to be formed in the corridors so that the staff in the office might distribute the application forms with expedition.

For those desiring to build, the application form provides that a valuation fee of 12s 6d must accompany the application, and there is an additional fee of 10s 6d for every inspection of a dwelling house while in course of erection. Emphasis is laid on' the fact that heart timber must be employed in the erection of houses, and that the applicant must agree to three inspections being made, otherwise the loan may be withdrawn. The maximum amount of the loan is £1250, and each applicant is required to state how much assistance he requires from the Department, as well as the largest amount of cash he can put down as a deposit. It must also be stated whether the applicant is married or about to be married* "You will also require to forward with your applications," says the form, "evidence in the form of sale note, receipt, agreement, or otherwise, as to purchase pric* of section, tender accepted, or contract entered into, for the ereqtion of dwelling."

A similar form to that referred to above is provided for those who desire to obtain an advance of 95 per cent, to acquire a home. This means that the Department is also prepared to lend money for the purchase of houses already built. Such applications must be accompanied by a valuation fee of 12s 6d.

In the House of Representatives this afternoon Mr. S. G. Smith (Taranaki) stated that if a worker entered into a contract as provided by the application form, and his application were turned down, he might be liable to a penalty for breach 'of contract, which he had been compelled by the regulations to enter into. Would the Prime Minister, asked Mr. Smith, agree that in this respect tentative tenders or .agreements would be accepted? The Prime Minister replied that nothing of the sort suggested by the last clause of the application form was intended. He would be very glad to look into the matter.