Housing Advances

Grey River Argus, 29 July 1925, Page 3

Housing Advances

OWNERSHIP FROM OUTSET. (Special to the Argus.) WELLINGTON, July 28. A Housing Amendment Bill was introduce.! in the House to-day. The !’■ ■ lowing is the explanation of tho measure;

“Bv the State Advances Amenta

Act 1922, the administration of the Housing Act, 1919, was transferred 1. the State Advances Office, and tie functions of the Housing Board were assumed by tho State Advances Depart ment; mid under the Housing Act workers’ dwellings were sold on a sys-

tem of time payment, the purchaser having an equitable interest in the property until the purchase was completed, and on the completion of the purchase, he was entitled to receive a certificate and title, which was, however, issued subject to certain restrictions as to any future disposition of the property When the Housing Board was taken over by the State Advances Board, the policy of the latter board was to encourage purchasers to surrender tnen rights under their agreement to purchase and come in wader the ordinary ndvonees to workers system. To facilitate this, Section 7 of the Slate Advances Amendment Act, 1923, was passed. By virtue of that Section and of

arrangements made under it, persons who had entered into agreements to purchase their homes under the Housing Act became the owners in fee simple of their properties, subject in each ease to a mortgage to secure the loan made by the Advances Office. When that loan is repaid, and the mortgage discharged, the owner will hold his title, free from restriction. There exists however, an anomaly in that all persons who had completed the pureahse of their dwellings prior to the passing of the 1923 amendment receive their

titles subject to a restriction imposed by the earlier legislation. The purpose of this Bill is to remove that anomaly, and to put all prior purchasers in as favourable a position as if they come within the scheme as now administered. The principal disability resulting from the restrictio'iis now sought to be removed is that the restricted title s much less valuable as a security, if tho owner is in need of financial assistance.