asked the Minister for Local Government if he will take steps to enable local authorities to make advances, before the houses are roofed, to purchasers obtaining loans under the Small Dwellings Acquisition Acts, and thus reduce housing costs.
Ceisteanna—Questions. Oral Answers. - Small Dwellings Act Advances.
Section 59 of the Housing (Miscellaneous Provisions) Act, 1931, as amended by Section 23 of the Housing (Financial and Miscellaneous Provisions) Act, 1932, provides that where an advance is made under the Small Dwellings Acquisition Acts in respect of a house in course of construction, the advance may be made by instalments from time to time as the building of the house progresses, so that the total advance does not at any time before the completion of the house exceed 75 per centum of the value of the work done including the value of the borrower's interest in the site. In practice local authorities do not issue the first instalment until the external walls and roof of the house are complete. This requirement is intended to safeguard the interests of the local authority. However, it is not a statutory requirment and it is open to any local authority to waive it if they are satisfied that undue risk is not involved.