LOANS FOR HOUSES.

New Zealand Herald, Volume LX, Issue 18471, 7 August 1923, Page 6

LOANS FOR HOUSES.

STATE ADVANCES SCHEME. QUEUES : IN WELLINGTON.; RUSH OF APPLICATIONS. ' ' (by telegraph.— correspondent.) ' "' , WELLINGTON. Monday.; Sine© '■; last .Wednesday the Stated Advances office in the Government Buildings has been besieged by hundreds of people anxious to apply for loans, or the. purchase or erection of houses under the new amendment of the State Advances Act. ; So great has been the crush of' the homeless that queues .have had to be formed in '■ the corridors so that the staff i in ■ the- office might distribute the application forms with expedition for those desiring to build. ' The application.'form provides; that a valuation fee of 12s 6d ', must ; accompany the application, and there is, an additional fee of 10s 6d for every inspection of a dwelling house while in course of erection. Emphasis is laid on the fact that heart timber must be employed in the erection of houses and that the applicant must agree to three inspections being made, otherwise the loan may be withdrawn, v • • ; ' : : The maximum . amount of the loan is £1250 and each applicant is required to state how much assistance he 'requires from the department as • well as the: largest amount of cash he can put down las a deposit. It must also bo stated- whether the applicant is married or about to be .married.,'.'".'" '£■■■■*:■■' '■;.:; \v ';:"';'. .■{ ■'•'.■;•.: .:';M, ;; ■ ';•■ :; , ' ">You will also require to forward with your 'applications,' i says the form, '. "evidence in'the form of -j:sale note,;;- receipt, agreement, or otherwise as to . the purchase price of the section,, and tender accepted or contract entered into for the erection of a dwelling! . ; ' V* : . A similar form to that referred to above is provided 'for those who desire to obtain an advance of 95 per cent, to acquire a home. This means that the department is also prepared to lend money for the purchase of houses already built. Such applications must .be accompanied by a valuation fee of 12s 6d. •■-•'.

CONDITIONS PRIOR TO ADVANCE.

. QUESTION IN PARLIAMENT. r - [BY TELEGRAPH.SPECIAL REPORTER.} •':«; WELLINGTON. Monu^y..;, "Is it necessary to enter into a building contract before 1 applying for a Government loan with which to erect a house?" This was the gist of a question addressed to the Prime Minister in the House of Represen-tatives'to-day by Mr. S. G. Smith (Taranaki). i ■ - ......■■■ O. ■•■ ■'■ - •••••■ ■-■■■■..■■■■. ■ Mr. Smith produced one of the'forms; of application for loans under the new scheme; He, noticed that one of the requirements printed on the form was that the applicant .should forward with his application : evidence in the form of an agreement, sale note, or other document as to the purchase price of the section on ' which the ho i c was to be built. There could be no objection to that, said Mr. Smith, but the form, also required that the applicant should supply evidence that a tender had been accepted or a contract entered into for the election of the building. If a worker were compelled to accept a tender or enter into a contract and then an advance were refused him, be would be liable to be sued for breach of contract.- He would like. to know whether the contract or the acceptance of the tender might be ( tentative. Mr. Smith added that in bringing the matter up he was casting no reflection on- the State Advances Department, which wa» anxious to do its best for the public. ..The Prime Minister replied be was sorry that he had not had notice of the question. It was impossible to give an answer on the spur, of -the moment. : He ■ was sure .; that nothing like the suggestion contained in the last clause was intended. He did not' know the,explanation, : but he wouldinto the matter. v* '; • ' •.'••'•'