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The Government will also lend money to local bodies to acquire land as building sites and to meet incidental expenditure. Loans are also available to County Councils at 3 per cent, for re-lending at 3| per cent, to farmer ratepayers ; suspensory loans apply in those cases. This year the Government amended legislation permitting local authorities to increase their loan limits from £1,515 to £2,020. This will enable local bodies to increase their housing activities at present building costs. Another amendment extends the powers of borough councils to use land for housing purposes. The advice and help of the Housing Construction Division of the Ministry of Works is readily available to local bodies undertaking housing schemes, and the technical officers of the State Advances Corporation assist them where necessary. Finance is also available at current market rates to enable local authorities such as electric power boards and rabbit boards to purchase or erect houses for their employees* Continuity of Work Under the State Advances Corporation's " Certified House Scheme " a builder erecting houses for sale submits plans and specifications to the Corporation for its approval. If the Corporation is satisfied with these, and the land is suitable, it will indicate in advance whether the property will be acceptable as a security for a loan to the eventual purchaser. When the house is built to its requirements the Corporation will them make a loan available to the approved purchaser. Fullest use is not being made of this scheme, which could be operated advantageously in districts where there is a large unsatisfied demand for houses, and where there is no risk of houses remaining unsold. Financing Buildings in Course of Erection The State Advances Corporation is prepared to make payments to home builders at progressive stages of erection. If home builders apply, the Corporation may also make additional monthly payments as the work progresses. A point not generally understood is that in all its loan financing the State Advances Corporation, for its own protection and for the protection of borrowers, must observe the provisions of the Wages Protection and Contractors Liens Act and must retain 25 per cent, of its loans for a period of thirty days, in case any liens are registered against the building. Sale of State Houses To encourage private home ownership State house tenants are being given an opportunity to buy the houses they occupy. Tenants occupying State rental houses on or before the 31st July, 1950, the main sale terms are : (a) A minimum deposit of 5 per cent, of the sale price. (b) A suspensory loan assessed at 10 per cent, of the sale price with a maximum loan of £2OO. (c) A repayment period up to forty years for the balance of the purchase-money, together with interest, on an instalment-table basis. (d) An interest charge of per cent., reduced to 3 per cent, while the conditions of sale (in particular, continued personal ownership and occupation by the purchaser and/or his wife) are complied with. (e) Discount of 5 per cent, for payments of purchase-money in excess of the required instalments of sale, or in excess of the minimum deposit. (/) Repayment insurance benefits applicable to all cases where the wage-earner in the purchaser's family is under sixty years at< the time of purchase. (g) If the purchaser wishes to resell the State house within seven years, it must first be offered for sale back to the Crown. 2—J 6 i

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