RURAL HOUSING ACT

Gisborne Herald, Volume LXVI, Issue 20110, 2 December 1939, Page 7

RURAL HOUSING ACT

LOANS TO FARMERS REGULATIONS ISSUED (Ter Press Association.) WELLINGTON, this day. Regulations giving effect to 1 proposals under the Rural Housing Act, passed last session, have been approved and the Minister of Housing, the Hon. H. T. Armstrong, will visit the Waikato next week to meet local body representatives and explain the scheme. Tile Act is designed to facilitate some progress in the direction of improving rural housing conditions and makes provision by which county cbuncils and other eligible local bodies may obtain finance, out of which loans may be made to farmers to assist in the erection of new buildings or adding to or adapting existing buildings. The regulations provide that the Act is to be administered by the State Advances Corporation and the services of the Valuer-General are to be utilised for the purpose of supplying tile valuation. Special loans may be raised by local bodies without taking a poll and the bodies are empowered to charge 31 per cent interest to farmer borrowers, repayment to be made over 15, 20 or 25 years. The loan money available to local authorities wjll be at the rate oi 3 per cent, and in addition to the i per cent thus allowed, the Act makes provision by which a sum equal to 11 per cent of any amount advanced to Tanner borrowers may be added to the amount of the loan in order to cover initial administrative costs.