HOUSING ACT, 1919 (STATEMENT OF THE HOUSING SUPERINTENDENT RELATING TO THE).

Appendix to the Journals of the House of Representatives, 1921 Session I-II, H-11a

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Session 11. 1921. NEW ZEALAND.

HOUSING ACT, 1919 (STATEMENT OF THE HOUSING SUPERINTENDENT RELATING TO THE).

Presented to both Houses of the General Assembly pursuant to Section 35 of the Housing Act, 1919.

20th September, 1921. In pursuance of section 35 of the Housing Act, 1919, I have the honour to present the following statement of the Housing Superintendent relating to the operation of the Act during the year ended 31st March, 1921. G. Jas. Anderson, Minister of Labour. BE PORT. During the year under review an amendment to the Housing Act, 1919, was passed. The principal provisions are, — (I.) To enable leasehold interests in land to be acquired for workers' dwellings. Whilst it is desirable to build on freehold land whereve possible, it may be found necessary to acquire leasehold land in those towns where the freehold cannot be obtained. (2.) Owing to the increased cost of building, the statutory maximum cost of dwellings was increased in the case of wooden dwellings from £775 to £900 (including section and administration expenses), and in the case of concrete or brick dwellings from £850 to £1,000. (3.) The provisions of Part II of the Housing Act, enabling incorporated societies of public servants to establish residential settlements and to obtain advances therefor, were extended so as to apply to any public-utility society formed for the purpose of establishing a village settlement or garden suburb. No applications have yet been made. (4.) Further power was given to enable Harbour Boards to borrow moneys for the acquisition of land and the erection of workers' dwellings pursuant to the provisions of Part IV of the principal Act. (5.) The remaining provisions related principally to the machinery of the Act, or to the restriction of rent of private dwellings. The latter has been dealt with in the general report of the Department. Building Operations, Prices, etc. (Part I.) Early in the year the Government authorized the Housing Board to proceed, out of the number of dwellings allocated by the Board, with the erection of 500 dwellings throughout the Dominion in addition to 209 in course of erection at that time. In allocating dwellings to each town the Board takes into consideration the number of applications received at the date of the allocation, the existing demand for dwellings generally, the number of workers' dwellings already erected there, and the prospects of future development and stability of the town. Tenders were accordingly called for in all the principal towns of the Dominion, but in only four towns were satisfactory quotations obtained at a fixed price—viz., Wanganui, Napier, Nelson, and Christchurch. These were accepted, but the Napier contractor, after signing the contract, failed to proceed with the work. Builders elsewhere were willing to erect dwellings only on a percentage basis, or, if fixed prices were submitted, the amounts were considerably too high. The position improved towards the end of the year.

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It is unfortunate that it was found necessary to suspend the erection of additional dwellings on account of the shortness of money at the time when the prospects for the building of houses had considerably improved, as in some towns—particularly in Auckland—we had been unable up to that time to make satisfactory arrangements for the erection of the large number of dwellings proposed. The statement attached shows the number of dwellings arranged for since the Housing Act came into operation. In order that the information may be up to date it is given to the 31st July, 1921, instead of to the 31st March.

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(l) Town. (2) (3) Number of , T , i\ ii- i. 'ii Number Dwellings bunt , . , . f uncompleted on 31st.lul°y re i921. 31st July, 1921. (4) (5) Number of Additional Number Houses purchased allocated but for for Applicants which Arrangements before 31st July, have not yet been 1921. made.* (6) Total. Wellington .. Auckland .. Christchurch Dunedin New Plymouth Midhirst Hawera Wanganui .. Masterton .. Palmerston North Feilding Paeroa Levin Napier Hastings Hamilton .. Stratford Carterton .. Whangarei .. Morrinsville Marton Otorohanga Te Kuiti .. Te Aroha .. Te Awamutu Taihape Jnglewood .. Nelson Picton 78 68 7 8 16 70 1 11 6 8 2 8 14 18 10 4 3 1 1 4 3 2 4 20 134 19 116 1 8 30 3 17 1 1 24 1 7 3 12 1 25 2 3 3 4 19 6 2 38 4 2 4 300 150 87 50 34 1 35 40 25 30 8 1 4 30 12 40 6 2 4 5 2 3 3 6 6 6 2 15 1 14 11 2 4 2 4 8 18 10 3 4 4 3 3 3 6 2 18 I 1 1 1 1 1 4 ■ 1 2 3 3 2 6 6 2 3 3 1 1 6 5 2 3 1 2 2 1 2 1 2 16 3 7 1 2 1 3 2 1 2 3 6 1 18 3 1 I I 9 Oamaru Timaru Westport Invercargill.. Mataura Winton Blenheim .. Dannevirke.. Gisborne 13 1 2 3 Greymouth Havelock North 1 2 1 1 Matamata .. Woodville . . Opotiki Patea Rotorua Eketahuna .. Kaiapoi Middlemarch Ngaruawahia Waipukurau Havelock .. 1 '.'. 1 1 I 1 Totals 162 V ' 232 501 107 i 530 1,031 Owini to financii il stria reno -, inabilit; to obtain tendi >rs, <fce.

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In addition, as shown later in this report, 106 workers' dwellings have been erected, or were being erected, by lqcal authorities and employers (the latter by means of loans granted by the Housing Board under Part 111 of the Act), making a total of 607 workers' dwellings erected or in course of erection. In every instance of loans to employers the houses have been let by them to their workers at rentals approved by the Board. As mentioned in last year's report, owing to the difficulty in obtaining satisfactory tenders, the Department found it necessary to arrange for the purchase of materials for 200 dwellings and to let the work of erection by various methods, such as letting contracts for the separate trades (labour only), or by assisting the contractors by obtaining or supplying them with materials, or by the employment of day labour, and so on. This involves a great deal of administrative work in the Department. Approximately 173 of the 200 dwellings have already been completed or are in course of erection in this way In a previous year's report the advisability of establishing workshops and of purchasing materials was mentioned in anticipation of a large number of dwellings being put in hand in the chief centres. Under such circumstances this course would, no doubt, have led to economy and efficiency. The work of the Department appears to lie, however, in the direction of spreading its dwellings over many towns of the Dominion, both large and small, extending from Auckland and Wellington on the one hand to such places as Te Puke and Fairlie on the other. The erection of only, say, 500 houses in one year would, therefore, not provide for a large number in any one centre, yet it would involve the expenditure of nearly half a million of money per annum. While the establishment of workshops and the purchase of materials in the chief centres would probably result in some economy, which the Department has already been able to demonstrate in regard to the importation of roofing-iron and other materials, the cost of storing the materials and distributing them to the jobs all over the Dominion would largely nullify the advantages anticipated. It would be scarcely possible, therefore, for the Department to compete with the local merchants and builders who carry on business in nearly every town, have their own shops and supplies on the spot, and know the local conditions. The letting of complete contracts would thus appear to be the most satisfactory method of carrying on the Department's housing-work. It enables us, moreover, to advise the applicants before building commences as to what the total cost of their dwellings will be. In the 1919 report it was shown that even under this system the Department had been able to provide dwellings at about £150 less in cost than they could be built for singly by private enterprise, on account of the saving on land purchased in blocks and the houses being built in groups, there being small charges for administration and no profits. The Department was faced with the problem of the increasing prices of materials during most of the year. The peak of high prices was reached in January last; since that time there has been a slight decline in prices, and labour is now becoming more plentiful. Owing to the high price the cost of the dwellings arranged for early in the year increased considerably beyond the original estimate supplied by the Architect. The principal items are cement, which is nearly double the price it was when several of the larger contracts were let—viz., £9 13s. 6d. per ton as compared with £5 ss. per ton —while timber has increased in price approximately 25 per cent., and there has been an increase in the price of labour. Although last session the statutory maximum was raised for concrete and brick dwellings (including land and administration expenses) from £850 to £1,000, and in the case of wooden dwellings from £775 to £900, it was soon found impossible to erect at a cost within those maxima. The cost of dwellings in concrete (excepting a few of a large design) including land, &c, recently completed varies from £975 to about £1,125. The estimated total outlay of the occupant for such a dwelling (covering interest, sinking fund, also rates, insurance, and estimated cost of maintenance, approximately 6f per cent.) is about £74 per annum, or £1 Bs. 6d. per week. This amount, while seemingly too large a rental for the average worker to pay, is really less than the rentals being charged for ordinary private houses which are built of wood. But for the rise in the cost of materials, &c, since the erection was begun, most of the dwellings of the usual design would have been provided for about £950 in all, involving a weekly instalment of £1 os. sd. (excluding rates and maintenance). Much of the criticism of the dwellings in the earlier stages of erection has now been dispelled by an inspection of the completed dwellings, and the general opinion—including that of the occupants themselves —is that the dwellings are comfortable and convenient, besides being reasonable in price when compared with other houses —being, in fact, some £200 to £300 less in cost. The Department has given every encouragement and assistance to applicants who have submitted their own plans and specifications, and in some cases obtained their own tenders, by revising the plans, finding the money, and so on. A number of dwellings have been erected in this way. This has entailed a good deal of supervision work. Following on your instructions, preference is in all cases now being given in the allotment of dwellings to those applicants with the largest families, and quite a number of very needy cases have thus been given timely assistance. The work of the Department in connection with housing might well be concentrated in this direction. These are the cases that most need help, and yet, as is well known, are those that in ordinary circumstances experience the greatest difficulty in securing houses, on account of the damage done by the children. The difficulties mentioned could be obviated to some extent by selecting the designs most suitable for large families, and the materials that suffer least from the activities of children, such as concrete or brick and plaster, rather than wood, scrim, and paper. The Department has been able to assist many returned soldiers in the erection of dwellings by supplying plans and specifications, and also materials from the Department's stocks. The latter were supplied at cost prices, which were lower than the ruling market prices.

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From the passing of the Act to 31st July, 1921, 107 dwellings were purchased under section, 10 of the Act, which authorizes the purchase of dwellings (already erected) for applicants. • In all cases houses have been purchased in this way only where the applicants were urgently in need of dwellings and where the dwellings would readily resell if at any future time the purchasers gave up possession. ToWN-rLANNING, ETC. Development of New Areas. —Considerable attention has been devoted to the question of townplanning for the development of large areas. The close attention which has been paid to the " layout " plans, besides improving the appearance of the proposed settlements, will result in many advantages of a more practical nature, such as better lighting and healthier conditions. Lay-out plans have been prepared for the housing schemes in Wellington, Christchurch, Auckland, Hamilton, and New Plymouth. The development work at Christchurch, as described in last year's report, is proceeding satisfactorily. That at Wellington comprises an area of 57| acres of land which was purchased during the year at central Miramar. This plan provides for 280 house allotments, sites for shopping area, reserves for gardens and public buildings, a playing-green, and two smaller ones for children's playgrounds. The survey plans have been completed, and the plans for roads and drainage are being prepared. This is perhaps the largest area to be so planned for a housing scheme in this Dominion. Plans of Dwellings. —A number of new plans of modern design have been prepared so as to secure the maximum of accommodation at the minimum of expense. The sizes of the houses have been reduced to. the minimum area on account of high-building costs. Special attention has been given to the planning from the point of view of having no space wasted in unnecessary halls or passages, while the fittings have been arranged so as to give as little labour as possible in the housework. Method of Construction. —Various new methods of construction have been tried and tested, especially in concrete. Six different methods in concrete have been used at the Miramar works. It has been found that of the concrete and brick systems the small concrete-slab hollow-wall construction and the ordinary brick hollow-wall construction are the most speedy in erection. They are the most economical in the weekly cost or rental, and make the best houses to live in. . Different roofing-materials have been used, of which the tcrra-cotta tile is so far found the most satisfactory. On account of the difficulty in procuring joinery for windows, steel casements have been used in some of the dwellings. These are found to be watertight, and are suitable for brick or concrete houses. Part 111. —Loans to Employers. Employers have not to any extent taken advantage of this Part of the Act, which enables employers to obtain loans for the purpose of erecting dwellings for their employees. During the year two grants were made—one in the dairying industry for one dwelling, and one in the engineering industry for four dwellings. The total number of dwellings for which grants have been made since the passing of the Act to 31st March, 1921, is eleven, while six were pending. Part V. —Erection of Workers' Dwellings by Local Authorities. ■ The following is the estimated number of dwellings erected by local authorities since the Housing Act was passed in November, 1919, to 31st March, 1921, also the number of additional dwellings immediately contemplated or arranged for : —

Estimated Shortage op Houses. An estimate was made in last year's report (Housing Act, H.-11a, page 3) as to the number of houses required to provide at least one room for every 1J persons. This was the basis adopted in the report of the Board of Health, from which it was shown that in 1916 (the last census year) there were 4,100 houses in New Zealand in which there were more than 1| persons per room.

District. Number of Dwellings completed. Number of Dwellings in course of Erection. Number of Dwellings contemplated or arranged for. lamilton lapier 'almerston North Luckland Vhangarei !hristchurch .. risborne few Plymouth Vellington 10 4 10 11 8 5 5 10 1 3 10 6 3 9 5 2 11 15 30 Totals 63 32 ■ 63

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Unfortunately, the present year's census tables are not yet sufficiently far advanced to show the exact present position. The only information so far obtainable states as follows :— Average Number of Persons per Dwelling. Census 1911. Cenusl9l6. Census 1921. In New Zealand .. .. .. 4-68 4-5 4-5 In boroughs only .. .. .. 4-76 4-5 4-5 It is interesting in addition to the above to state that the towns where the average number of persons per house according to the 1921 census exceeds 4-5 are, with one exception, small, viz : Dargaville, 5 ; Otahuhu, 4-7 ; Pukekohc, 4-6 ; Te Aroha, 4-9 ; Rotorua, 5-5 (perhaps this is due to tourist traffic) ; Opotiki, 4-9 ; Taumarunui, 4-7 ; Eltham, 4-68 ; Palmerston North, 4-7 ; Richmond (Nelson), 4-6 ; Ashburton, 6. In the larger towns the average is : Auckland and suburbs, 4-4 ; Wellington, 4-5 ; Christchurch, 4-1; Dunedin, 4-3 ; Hamilton, 4-5 ; Gisborne, 4-4 ; Napier, 4-3 ; Hastings, 4-1 ; Masterton, 4-3 ; New Plymouth, 4-2; Wanganui, 4-5; Nelson, 4-3; Greymouth, 4-5; Timaru, 4-5; Oamaru, 4-1; Invercargill, 4-5. While these figures do not give a definite guide as to whether the number of overcrowded houses as disclosed by the 1916 returns has increased or not, they indicate that on the average the position has slightly improved even in the boroughs. We have ascertained that during the twelve months ending November, 1920, 4,997 —or, roughly, 5,000 —houses had been or were being built in the various cities, boroughs, and town districts of the Dominion, in addition to which many improvements and additions were made to existing dwellings. No reliable information is obtainable as to the number built in the country or rural districts ; no doubt the shortage in these does not exist to any great extent, but it would be reasonable to assume that in all at least 6,000 houses were built throughout the Dominion during that year. After allowing for fires and demolitions (estimated by experts at about 1,330 per annum), there should be a net increase of 4,670 houses during the year. The increase in the population of New Zealand during the same period was 30,000, for whom, at 1| persons per room, about 4,000 five-roomed houses would be required. It would appear, therefore, that the number of overcrowded houses is not quite so great as it was in 1916. It might be added that the census tables for this year show that there were at the time of the census 2,046 houses in course of erection in New Zealand, of which 1,308 were in the cities and boroughs, while at the time of the 1916 census there were only 685 and 466 respectively, showing considerably increased activity in 1921. Miscellaneous. The annual inspection of workers' dwellings already erected again shows that the houses arc well cared for, and that, with few exceptions, the occupants take a pride in their properties and spend a great deal of time and labour in making improvements, thus adding considerably to the value of the dwellings. The painting of the houses, which had been in many cases postponed on account of the high cost of materials and labour, was carried out during the year, in most instances by the occupants themselves, but where necessary the Department assisted by advancing the cost of materials to the occupants—the amount to be repaid by instalments.

RETURNS. (a), (b), and (c) made pursuant to Section 35 of the Act. (a.) The Moneys expended during the Financial Year in acquiring Land under this Act, in preparing the same for Dwellings, and in erecting such Dwellings. 1920-21. £ B . ,i. Amount expended in acquiring land and dwellings already erected 41,621 5 2 Amount expended in preparing land for dwellings .. .. 1,076 10 1 Amount expended in erecting dwellings .. .. .. 222,976 5 9 £265,674 1 0 Amount expended in administration and in fire insurance, rates, &c, was £22,276 6s. 3d. The net expenditure for administration expenses for the year was £13,825 lis. 6d. These expenses were, of course, incurred not only in the erection of the 159 dwellings completed during the year, but also in connection with (a) some 320 that were about half finished on the 31st March, (b) inspections, collection of instalments, &c, of 695 dwellings built in previous years for which the purchase had not been completed by the occupants, and (c) preparing " layouts " of new settlements, investigating

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various systems of building in concrete and other materials, inquiries and reports upon applicants, and so on. The total expenditure in connection with workers' dwellings during the year was £287,950 7s. 3d. (b.) The Number of Dwellings erected and purchased during the Year and the Number disposed OF. The number of dwellings erected or purchased .. .. .. .. 159 The number of dwellings disposed of .. .. .. .. 159

(c.) The Weekly or other Payments contracted for, the Amount of such Payments received and the Amount of Arrears outstanding.

The instalments owing on the 31st March show a slight increase—from £1,689 Is. Bd. last year to £1,963 4s. sd. ; but, as the number of dwellings also increased—from 688 to 825 —the average per dwelling decreased from £2 9s. Id. to £2 7s. Bd., which is an average of Bs. 3d. per dwelling per year since erection. Of the amount owing on the 31st March—viz., £1,963 4s. sd.—the sums paid off by the 16th April were £858 15s. 2d., leaving £1,104 9s. 3d. owing at the latter date, or £1 4s. 5d., per dwelling, or an average of 4s. 3d. per dwelling per year, as against 4s. sd. on the 16th April, 1920. In every case the arrears are more than covered by the amount paid off the principal, after deducting depreciation.

(d.) The Total Number of Dwellings erected and purchased from Inception of Original Act to 31st March, 1921.

Approximate Cunt of Paper. —Preparation, not given; printing (650 copies), £16.

By Authority : Marcus F. Mabks, Government Printer, Wellington.—l92l.

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(1) Arrears outitanding as at 31st March, 1920. (2) Weekly or other Payments contracted for (exclusive of Arrears, Column 1). (Total for Year.) (3) Total Amount received for Year. (4) Arrears outstanding as at 31st March, 1921. (Including Column 1.) (5) Number of Dwellings on Settlements unpaid for. (Twenty-nine fully paid for.) (6) Average Arrears per Dwelling. £ s. d. 1,689 1 8 i £ s. d. 39,192 10 1 £ 38,918 s. d. 7 4 £ 1,963 s. d. 4 5 £2 7s. 8d., or 8s. 3d. per dwelling per year. 825

(i) Town. (2) 111 1 _ M 5S.S p •-.-d-d (8) ■3 s CS s_ n a-e a sisill H (4) i "_ & £ 5 0 I s (5) P t-t op (1) Town. (2) tn i w j? a c P B'C 3 o aj ■s _ I s £ .J-... (3) ■So njo, B aw a I IJFI S3 2s32 (4) « ■ft a o g | (S) ago «_» ,2I_a1, Auckland Wellington Christchurch Dunedin Frankton Junction Whangarei Paeroa Whakatane Ngaruawahia Tauranga Te Puke Te Awamutu Opotiki Tolaga Bay Gisborne Napier Hastings Dannevirke Patea Midhirst Hawcra Warea Manaia Wanganui Marton Feilding Palmerston North Woodvillo Ijovin .. 20 56 2 10 2 3 i 138 197 74 41 11 3 1 3 G G 7 6 1 8 1G 11 15 2 10 1 10 1 2 22 4 1 18 2 4 7 4 2 3 131 193 72 41 11 3 1 3 G 5 4 6 1 8 16 11 15 2 10 1 9 1 2 22 4 1 15 2 4 Masterton Masterton (rural) Carterton (rural).. New Plymouth .. Waitara Picton Blenheim (rural). . Nelson Westport Greymouth Ashburton Temuka Timaru Fairlie (rural) Willowbridge (rural) Waimate Oamaru Inyercargill Inglewood Eketahuna Featherston Mataura Nightcaps Riverton Stratford Winton II 3 1 2 3 2 6 36 11 5 9 1 G 7 20 14 14 6 9 25 7 13 G 10 22 2 1 1 3 1 1 1 2 1 2 i i i 2* 38 0 5 9 1 6 6 20 II 14 6 9 24 8 II 6 Ui 22 2 1 I 3 1 1 1 2 2 4 1 2 I 3 2 1 1 2 1 1 1 I 3 1 1 2 I 1 2 4 3 Totals 159 854 29 825 * One of these d' 'ellings has iteen com] )letely destroyed by fire ind not rebuilt.