HOUSING SCHEME

Hokitika Guardian, 11 November 1936, Page 5

HOUSING SCHEME

GOVT. LOAN OFFER

TO LOCAL AUTHORITIES,

Per Press 'Association Copyright.

WELLINGTON, November 10.

The conditions governing the Government’s offer of a £1,500,000 loan money at 3 per cent, for the local authorities desiring to conduct their own schemes of housing, were explained to-day by the Prime Minister (the Rt, Hon. M. J. Savage), •? .

“In term b> of Section 29 of the Fin-ance-Act, 1932, the Governor-Genera l-in-Council when giving consent to the raising of moneys by a local authority,” he said, may determine upon the inclusion of the following conditions: “(a) That the approval of the Ministry of Housing be obtained to detailed plan, specifications and estimates of a housing scheme for which a loan is being raised. . , , ... .* “(b) That the houses to be "builfc under the scheme be not available for the use or occupation of persons with incomes exceeding £312 per annum; providing that, if circumstances, in his opinion, warrant doing so, the Minister of Housing may agree to an increase in the income limitation so fixed. - “(c) That a special covenant be embodied in any contract for sale or lease by a local body providing for the prior consent of the local body concerned to any sale or.; other disposal of any house included in the housing scheme; and providing, further, that such consent be withheld to any proposed sale where the purchase price on re-sale is in excess of the original value of the house ana section, less depreciation j plus the value of improvements. ; “In my earlier announcement,” continued the Prime Minister, ~ “it was. made clear that the 3. per cent, money to be advanced 'to . local bodied should be used to build a* house that, as far .as possible, will be a New Zealandmade house, f No loan to a local body will be approved'"where 'the’ quantity of foreign imperials to be used is in excess of the - amount which the Department of Housing Constitution believes Full particulars on this aspect will be" included in the specifications to be submitted .for the ap-< proval of .the Ministry of Housing. , “In order to avoid any misunderstanding at a later date, it should be now stated that the 3 per cent housing finance to local bodies Is provided for the purpose of acquiring land'and erecting houses , for the occupation of persons offmoderate income. ;It is nofc lawful for a borrowing local body to re-lend the moneys so borrowed t 6 individuals. 1

“The way is now clear for local bod,, ies, including city councils, borough; councils, county councils, town boards, harbour boards and power boards, to avail themselves of the 3 per cent, housing finance. In the case of the first four classed of local authorities, there is no necessity to take a poll of the ratepayers, as required under Sections. 9 to 13 of the Local Bodies Loan Act,; 1926. A loan many'be raised by way of “special order” in lieu of .taking such poll. In the case of harbour and power boards, the enabling Statutes limited the dwellings to the number re-* quired for employees in the (services of the respective boards. Other' local bodies, however, have no such?limitation, and may borrow for the purpose of. purchase of land and erection of houses for the occupation of workers employed or resident in their respective dis-

tricts. *7* . “I repeat for the benefit of local authorities,, the offer of the Ministry op Housing to extend its assistance t« any local body in the, way of advice and co-operation in ,the preparation of its scheme, and in its willingness $o undertake the preparation and construction; of a housing scheme itself in certain circumstances at the cost of. a localj body.” ' , ■ •'