Rural Housing Loan Agreed To

Manawatu Times, Volume 65, Issue 187, 9 August 1940, Page 3

Rural Housing Loan Agreed To

OEOUA COUNTY COUNCIL’S DECISION In connection with tho proposal of tho Oroua County Council to proceed with tho raising of a loan of £IO,OOO for the purposes of the Rural Housing Act, the chairman (Or. A. Campbell) reported at yesterday's meeting of the council that one objection had been received from a ratepayer. The objection was based on the belief that the loan would result in an added rato burden. Cr. T. Green stated that many ratepayers were under the impression that if the council raised the loan lor rural housing ratepayers would have to submit to an additional rate. This was not the position aud ho suggested that the chairman should clarify the position.

Cr. Campbell said that the position was perfectly clear, although he admitted that many people had not understood what was intended despite the publicity given to the matter of loans for rural housing. In tho event of the council being successful in obtaining authority to borrow £IO,OOO for the purposes of rural housing tho council was bound to provide for a rate to secure the loan. This was in accordance with Statute provisions. Actually the rate did not operate and the loan money would not be lifted until required. If an applicant was granted £6OO or £SOO to build a house under tho scheme then the money granted for this purpose would become a charge on the land of the applicant who would be responsible for the repayment of the advance over a period of years. Ratepayers, other than the applicant ratepayer, would not be concerned about the advance since all charges in connection with tho Joan would be borne by the applicant. The council would only lift tho loan moneys as required to satisfy succcssfuL.nppliFollowing the chairman’s explanation the council decided to proceed with the application for the loan of £IO,OOO, Or. Campbell stating that the only objection received would have to accompany the application.