RURAL HOUSING ACT

Taranaki Daily News, 11 September 1940, Page 8

RURAL HOUSING ACT

EGMONT COUNTY WORK TWO LOANS APPROVED The next few weeks should see a start made in the Egmont county with the erection of houses under the provisions of the Rural Housing Act, 1939, which provides that local bodies may raise money to lend to filrmers at a low rate of interest. ' In addition, a Government subsidy of 10 per cent. is available to the farmer on houses commenced before October 31. Four applications from farmers have been received by the Egmont County Council. The council ap- | proved of two of them yesterday and passed the speciai order necessary to raise a loan of £5000 for the purpose of making advances under the Rural Housing Act. The money will be borrowed for a term of 25 years,, interest being at 3 per cent., the conditions having been approved by the Local Government Loans Board. Longer Term Fietter. It was considered by members of the council yesterday that a 25-year term would be better for the farmer than 15 years. In the former case the total payments for interest and • sinking fund would be 6 per cent., against 8 per cent. for a 15-year term. Comment was made by a councillor that some of the houses built under a previous Government scheme would not last more than 10 years, but it was pointed out that under the present scheme the plans and specifications had to be approved by the council, which could assure itself that inferior material was not used. There would be no need to worry over the question of maintenance, for that would be looked after by the mortgagee, it was considered. There could be no question that the houses would not last 25 years, unless they were disgracefully treated. • One member said that he had not known a house that did not last 40 years. It was also pointed out that new houses erected under this scheme would be insured in the name of the council.