CITY HOUSING

Evening Post, Volume CXXVI, Issue 90, 13 October 1938, Page 11

CITY HOUSING

THE WELLINGTON ACT

REPORT TO COUNCIL

MAXIMUM SUM PROPOSED

Guides to those who wish to takeadvantage of the facilities for house-building-offered by the Wellington City Housing Act,. passed just before the end of the session, are given in a report of the housing committee to the City Council yesterday afternoon.. The committee's recommendations were as follows:—=

That. all applications lor loans requiring council assistance under the Housing Act be made in duplicate to the financial institution concerned, which is to obtain a first valuation, also in. duplicate.

That one copy of application, together with plans and specifications, be submitted at once to the council.

That provided the City Valuer approves and the council agrees, a loan not exceeding 90 per cent, may be granted by the financial institution.

That all subsequent valuations required for progress payments be made by the City Valuer.

' That a fee of £2 2s be paid by the applicant, half of which is to be applied for. the City Valuer's services in respect of each loan, after the loan is approved.

That mortgages be for any term up to thirty years.

That the rate of interest to be charged under the mortgage is not to exceed 5 per cent.

That repayments of principal and interest be made by monthly or quarterly instalments.

That two-thirds of reduction in principal be appropriated and paid to the council each half-year, until the council's share,of principal is repaid. In the case of, guarantees the amount of the council's guarantees shall be reduced in similar proportions.

That the council is not to be liable i for penalty interest. if the council takes over any. mortgage. That preference be given to applicants who are owner home-builders for their own occupation,, but loans to builders proposing to erect more than one house, for sale to intending owner-occupiers may also be approved, on the understanding that at least the portion of. the purchaser's deposit in excess of , the .10 per cent, found by the builder is to be paid in reduction of the loan, or council's guarantee. In such cases the council to have the right to use its discretion, unless the council shall, in any special case otherwise agree. That the form of guarantee and agreement as td joint mortgages between council and financial institution be as drafted by the City Solicitor. CONFERENCE WITH FINANCIAL INSTITUTIONS. That a conference be called of representatives from the various financial institutions to meet the housing committee to discuss the procedure and system whereby the council proposes to operate in carrying out the provi- , sions of the Act and to . obtain the maximum co-operation. ?Fiiiancial institutions in the city suggested are:-~Co-operative building societies, friendly societies, mortage loan companies, life insurance com. panics and . Government Life Insurance *■■ Department, Public Trust Department,*: State Advances and any other lending organisations. * That after consultation with the financial institutions the housing committee meet representatives of the small home-builders in the city ■to explain and discuss the provision of the Act to them. -'■■'.' REPAIRS TO OLD BUILDINGS. That publicity be given to the provisions of the Act in regard to advances, witli consent of owner and mortgagee, for repairs to old dwellings. That in these loans the rate of interest to be charged by the council be 4 per cent, with half-yearly rests. That the period of the loan is not to exceed - seven. years; repayments to be by half-yearly instalments of principal- and interest so as to extinguish granted to- pay. off the whole or any - the loan in that period;, the right to be part of ■ the "loan at any time during the period.

That a general authority be obtained from the Local Government Loans Boar^ to raise the maximum amount authorised under the Act.