HOME BUILDING

Evening Post, Volume CXXVII, Issue 129, 3 June 1939, Page 11

HOME BUILDING

CITY HOUSING PLAN

PROCEDURE EXPLAINED

The procedure to be followed by those wishing to avail themselves of the scheme of home building under the City. Housing Act was explained in general detail by Councillor M. Fraser, who, with iCouncillor R. L. Macalister, was mainly responsible for the scheme, to a "Post" reporter today. • There would be ..a minimum of "red tape" arid likely causes of confusion of mind, said Councillor. Fraser, but obviously a definite procedure had to be followed.. The general requirements to be fulfilled by applicants are these: — Any person owning land, or any purchaser of land, in the City of Wellington who is desirous of building a house thereon is entitled to participate provided he can find ten per cent, of total estimated cost —land and house. The maximum, loan which can be granted is £1350 and it must be on table basis, with a maximum period of thirty years. The loan of 90 per cent, is made after valuation—the lending institution advancing the whole. amount on first j mortgage and the council guaranteeing to the lending institution that portion in excess of their usual 66 2-3 per cent. An insurance provision is made whereby 1 per cent, is added to the mortgage (the loan is not reduced) and •paid to the council's insurance fund to pro vide for any losses arising out of the scheme (a sum less than costs of a second mortgage). PROCEDURE. I.AU applications for such loans are to be made in duplicate to the financial institution concerned. 2. One copy, of application together with plans arid specifications' is to be submitted at once to the council through the Town Clerk for preliminary approval. " t . 3. The financial institution then obtains a first valuation, also in duplicate —one copy being submitted to the cduncil. . ■■■•.• ■4. Provided' the City Valuer approves and the council agrees, a loan of not exceeding 90 per cerit. may be granted by the financial institution. 5. All subsequent valuations required for progress payments to be made by the City Valuer. 6.'A fee of £1 Is is to be paid by the applicant, which is to be applied for the City Valuer's service in' respect of each loan, ; after the loan is approved. ..:..■.. ■ •'■ ■'■■'. - 7. ..Repayments, of principal and interest are to be made .by monthly or quarterly instalments, r' r 8. Two-thirds of reduction in principal are to be appropriated and paid to the eoifncii each half-year, the council's-share /of principal is repaid. In the case, of guarantees the amount of the council's guarantee shall be reduced in" similar proportions. 9.. Preference will be given to applicants '^ho:are owner-homebuilders for their own occupation, but • loans to builders proposing to erect more than one house for sale to intending owneroccupiers may also be .approver, on the understanding that at least the portion of the purchaser's deposit in ex-cess-of the-10.per ceritwfound by the builder is to' be^ paid in reduction of the loan, or council's guarantee. In such cases the council is to have the right to use its discretion,- unless the council shall in any special case otherr iVjse- agree. ..",//■;.- . ..".■ .■ ■-.-. :, '• . - lOy-Houses .mustvbe up to standard specifications, approved •by . the City Valuer as-to .workmanship and material—good quality, not luxury, will be the measure by which plans and work will be judged. •