HOUSING ON FARMS
ANOMALIES IN LEGISLATION WAIPA COUNTY COUNCIL’S ATTITUDE In a special report on the State’s scheme for rural housing, prepared by the Finance Committee in conference with, the county solicitor, and submitted at Monday’s meeting of the Waipa County Council, several very knotty points were referred to, it being stated that the legislation is not satisfactory in that it does not give sufficient protection county councils in the case of default \ by farmers availing themselves the provisions of the legislation.
Generally the points referred to were those published after last month’s meeting of tlie council. Especially was there anomaly where default was made in respect of one or more instalments of the loan.
The finance committee had decided to write to the Minister pointing out the anomalies and the need for amending legislation.
The intention of the legislation was approved and if anomalies are corrected by amendment of the Act, the Council was recommended to put the scheme into operation. Cr. Church inquired the position where a farmer mortgagor secures a loan for housing and subsequently abandons his equity in the farm. It was stated that the loan would be a charge on the land. The mortgagee’s consent to the loan being granted to the mortgagor would be a pre-requisite.
Cr. Onion instanced a case where values had receded, and the mortgagor had “walked off.” What then ? Cr. Garland: “That is the mortgagee’s look out!” A councillor: “Well, the average mortgagee would need to be very wary about giving his consent.” It was also stressed that the Crown is not bound by the provisions of the Rural Housing Act—that was a weakness that should be corrected.
When the chairman suggested that the finance committee’s recommendation be adopted, Cr. Church asked the farmers’ first cost, and was informed that one-half per cent of the amount of the loan applied for had to be lodged in cash with tiie application.
Cr. Onion said the Minister, when at Hamilton, had said he would welcome recommendations for amendment that would improve the legislation.
Cr. Garland said he was agreeable to participating in the scheme, providing the legislation was amended in the direction indicated by the finance committee. Cr. Hall concurred.
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Bibliographic details
Te Awamutu Courier, Volume 60, Issue 4235, 24 January 1940, Page 6
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368HOUSING ON FARMS Te Awamutu Courier, Volume 60, Issue 4235, 24 January 1940, Page 6
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