THE HOUSING ACT

Dominion, Volume 13, Issue 47, 19 November 1919, Page 3

THE HOUSING ACT

EXPLAINED TO THE

LAYMAN

A USEFUL PAMPHLET

The Labour Department has issued a pamphlet containing notes for the guidance of applicants for dwellings under tlio' Housing Act, 1919. Following are

excerpts from the publication :— "Some misapprehension appears to exist as to the difference between the provisions of l'art I of tho" Ifousing Act (formcr'y the Workers' 'Dwellings Act) and the Adyancejs to Workers provisions of the State Advances Act. Tho latter provisions enable a "worker" (ns defined in that Act) who wishes toerect a dwelling for himself to obtain, a loan-for the purpose. The r-mount of loan must not how exceed X .£750 (hitherto .fiiJO) nor three-fourths l)f 1 the total value (if the land and the dwelling. Under the Housing Act the "worker" may app'.y for a dwelling to be provided ■:. for him, and tho amount of deposit re'A. quired-from him is only .£10; but the ' dwelling must l>o on land set apart or purchased by the Government from time v, to time for the purpose of dwelling. For lthis- purpose, however, the Ilmisins: Branch of tho Tjahour Department will consider tho purchase of any suitable section owned bv or offered tn an nppli- - cant. In cpecial cases tco the Department •■■ will purchase a houso already erected for ' an applicant. Who May Apply. • •• ; "The provisions of Part I of the Act / ava intended primarily to apply to workers who do. not possess sections of tlieir own. For these persons the Department •will 'tsslf purchase the land required and erect dwellings thereon. For any person who already owns a section the State Advances Act makes provision. Any person who already owns a section but ' who cannot obtain a 'sufficient loan from tho State Advances Office, may apply to the Department of Labour for the beneiits prescribed by Part 1 of the Housing Act, and if the'section' owned by him i 9 suvt; able the Department will, under certain circumstances, take it over from tho ap- ■ plicaut and build a dwelling thereon. In 6iich a case the section would he accepted 'as security instead of the .£lO depns.t. There are two conditions' to qualify, nn ' applicant for a dwelling under the Housing Act: firstly, he or she must bo « worker, and the f word "worker" is de- ' fined in the Act as "any person employed in any capacity in any industry or.callin* whether by an emp.oyer or on his own account," and secondly, the applicant's normal income must not exceed £M per annum, including the income of the wife or husband as Hie case may be; this maximum income is, however, extended in the case of a person having more than two dependants (in addit.on . to a wife or husband, if any) by .CM per ' annum for each child or other dependant 1 in excess of, two. For the purpose of this 1 calculation the word "child" means "any ■ ■ child of an applicant under the age of •1G years," and the word "dependant means "any person not being tho -wife or husband of in applicant who in the • opinion of the Housing Board is depe.nd-*->.,ent wholly or to a. substantial extent. -upon that .applicant." It may be noted that the definition of "dependant" does' .ant.exclude a child of 1G years of .age or over if dependent on llie parent. . Tenure, Land, Plans, Etc., "An application may be. made,either to purchase a- dwelling or to rent a dwell- ' jug on a monthly or shorter, tenancy. I Tho board will, however, generally give, ■I preference to applications to purchase. In the case of a .tenancy the. rent 'wkl.-be ns fixed by the board. H thero is land in tlie" locality "already set apart or.pur- . chased by the Department for the purpose of dwellings the applicant should indicate tho section and area of that land that ho desires. If there is no such land he may indicate'generally tho. locality and area . he desires and tho Department wi'.l, as soon as it is ablo; to.iiiroceed 'witk the erection of dwellings in the locakty, purchase or acquire suitable land; the applicants will then.be able to-select their sections therefrom. ,"In order to eil'ect the utmost economy and to obtain the other advantages of standardisation, the Department niuj prepared two- designs for erection in con- : crete, brick, or other permanent material, though they can also be.bui'.t in wood. If the applicant desires so:ue ether design lie way apply accordingly to the , nearest Departmental officer stating tho reasons for !iis request and forwarding * a plan or sketch, His applanation will then, if possible, bo considered by the board. Applications are usually dealt with in tho order of the data of receipt, " preference being, as already stated, given to applicants to purchase, though any exceptional case w,ll receive consideration. With his application the applicant is required to make a deposit of .£1; in tho case of an application to rent a dwelling this sum will be applied towards .the payment of rent; in the case or an application to purchase a dwel.iug ii further deposit of £9 will be payable when ' the , applicant enters into tho agreement and fhe total sum of JcW will be applied . in reduction of thf? purchase money. Tho prico of a dticlHii? including the cost of tho section is limited to £il&, in the case of a dwelling erected mainly of wood, and JSSO; in any other case. Payment Money. "Tho amount of the purchase money, less the deposit of £10- already paid, is payable by instalments within H period not exceeding thirty years from tho date of the agreement in the cose of a dwelling erected mainly of wood, or thirtysix and a half years in the caso of any, other dwelling. The instalments payable' are of an equal amount throughout the whole period, , and each instalment consists partly of interest' and partly of principal. The interest charged is at the . -rate lof 5 per cent, on the purchase money for the time being outstanding, but. if a purchaser has ton punctual in his payments for a period of six months a refund will thereupon lie made to him of one-tenth of the amount paid by- him during that period by way of interest. The . net rate of interest is thus now i\ per cent. In addition to the payments of principal and interest the purchaser will be required lo pay with his instalments such amount as is necessary to fully insure the dwelling against loss or-damage by'fire or other cause. The purchaser h hnble to the local authority for all rates. "In the case of a wooden dwelling costing (with section) the maximum amount (JJ775), with the instalments payable for Ihe full period of 50 years, the amount payable in cash instalment. -comprising interest, repayment of principal, insurance, and the estimated amount of rates, would probably not exceed £1 '2s; Cd. a week, made up ns fol-, lows-.—lnterest and 'principal, 10s. 5d.; insurance, Is. 41.; am! ratw Is. 3d. In the case of. a ("nvelliim erected of materials other than wood and co?tinK (with section) the maximum amount (,£350), with the inshlments payable for the full period of .361 years the amount payable in each instalment. would probably not exceed £1 Is. Sd. a week, made up as follows:—lnterest ami principal. .193. Bd.; insurance, 3d..; and rates, Iβ. 9d. These sums are reducible to ,C 1 os. ild. in the ca?e of a wncden • dwelling and to Xl in the cape of liny other dwelling, if the purchaser pays his instalments punctually and thereby becomes entitled'to the refund mentioned above. The piiTi-linsor may if ''e k> chooses at anv time nay any pddiHomJ sum,, not bein:: less thiin C 2 10?.. tnwnrds the pur- . chase money of his dwelling, and tin* amount may. «t Hip -ntiin of tin; mirchasor, !k applied either in rrdnclion of the (imniint of future i>i.=i;ili»enK or in reduction of the period duri'is; which Buch in-'falnu'nf.s are "nva' ,, ?. From iwd nfter thp dnte oF Hip signinx of nn agreement to i)iirclv?.«c llv piirpli.-ipv lvcnnips liable for all renairs and for any work required by f'fi locnl nr other ""': • ; petenf authority. If tl<o nitrc'insp'v M* , ' to carrv nut pnch work the brnrri may it.°elf effect such improvement* or p'ter-a-rions n> nipv he •'»'] <-''';•*-<> the cost thereof to the I lie c-st will ilifn h- •!«;•:•'■'■■> .'•■'• the purchaser in retifonable instalments. Title en Payment. "At f.nr time nftfr th" exnirntion , of ten vea'rs' from the e<iinmei" > pi""'it of an ftsrreeinent to.-ni>r-.'li»» a dwolline. .-•iH on piypjcnt nj the full nmoimf of "«• TiurcSase money, interest, and other •harges payable, the purchaser is en-

titled to receive a cectftlcnb *£ tiilo' in respect to his dwelling under the Land Transfer Act, ■ ISJIS, but tho title wilt liesubject to tlio following restrictions: No - dwelling sold by the board under the Housing. Act iiiay bo disposer! of by the purchaser by way of sale, lease, mortgage, assignment, or in any other manner otherwise than by will, except with tho consent of the board, and any disposition in contravention of this section.will bo absolutely void. This provision .will apply for all time Jxith before and after the payment of all the purchase money and the issue of a'certificate of til-Je-"ln -order to assist any worker who may bo-unable to obtain a sufficient advance, from the Advances to .Workers branch of the State Advances Office, fho Housing Board will in special casee be prepared on .implication to purchase a dwelling already erected, and then to enter into nil agreement for the sale of that dwelling to the worker in the same way ns if the board, had erected the dwelling. The limitation iii the price ami the necessary .(nullifications to obtain such a dwelling are tho same as if the dwelling were erected by the Department."