Housing Agreement Act 1973 (NSW)

HOUSING AGREEMENT ACT.

ANNO VICESIMO SECUNDO

ELIZABETHE II REGINE

Act No. 57, 1973.

An Act to authorise the execution by or on behalf of the State of New South Wales of an agreement between the Commonwealth and the States in relation to housing; and for purposes connected

therewith. [Assented to, 10th October, 1973.]

O E it enacted by the Queen's Most Excellent Majesty, by
and with the advice and consent of the Legislative

1. This Act may be cited as the "Housing Agreement Act, 1973"

Council and Legislative Assembly of New South Wales in

Parliament assembled, and by the authority of the same. ar.

follows : —

The execution, by or on behalf of the State of New South Wales, of an agreement substantially in accordance with the form contained in the Schedule, is hereby authorised.

2.

(1) The Registrar-General shall, at the request of The Housing Commission of New South Wales made in a manner approved by the Registrar-General, and on payment of the fee prescribed under the Real Property Act, 1900, make in the Register kept under that Act a recording appropriate to signify—

3.

(a)	that land specified in the request is held subject to clause 19 of the Schedule to this Act ; or
(b)	that a recording made pursuant to paragraph (a) has ceased to have effect.

(2) The Housing Commission of New South Wales shall not make a request pursuant to subsection (1) (a) except for the purpose of ensuring compliance with clauses 3 and 19 of the Schedule, but the Registrar-General shall not be concerned to enquire whether any such request has been made for that purpose.

(3) Where a recording pursuant to subsection (1) (a) has been made in respect of any land, the Registrar- General shall not register under the Real Property Act, 1900, a transfer of that land to or by a person other than The Housing Commission of New South Wales unless it would be so registrable if this section had not been enacted and unless—	(a)	a recording pursuant to subsection (1) (b) has been made in respect of the land; or
(b)	the consent of The Housing Commission of New South Wales to the transfer has been endorsed thereon.

SCHEDULE

SCHEDULE

A N A G R E E M E N T made the day of

One thousand nine hundred and seventy-

Between T H E C O M M O N W E A L T H OF AUSTRALIA (in this Agree­

ment called ' the Commonwealth ') of the first part, T H E STATE OF
N E W SOUTH W A L E S of the second part, T H E STATE OF VICTORIA of
the third part, T H E STATE OF Q U E E N S L A N D of the fourth part, T H E

STATE OF SOUTH AUSTRALIA of the fifth part, T H E STATE OF W E S T E R N AUSTRALIA of the sixth part and T H E STATE OF TASMANIA of the
seventh part.

W H E R E A S —

(a) at conferences between Ministers for Housing of the Com­

monwealth and of the States proposals have been discussed in relation to the provision in the States of housing for the welfare of persons who are in need of governmental assistance if their housing requirements are to be met;

(b) the Commonwealth has proposed to the States that to

further the provision of housing to meet those requirements the Commonwealth will grant to the States financial assistance under section 96 of the Commonwealth of Aus­ tralia Constitution and that the terms and conditions on which the grant of financial assistance should be made are those set out in this Agreement; and

(c) the Parliament of the Commonwealth has authorised the

execution by and on behalf of the Commonwealth of this Agreement and the making of advances to the States in accordance with its provisions:

N o w IT is HEREBY AGREED as follows:

PART I — P R E L I M I N A R Y

1. This Agreement shall come into force in respect of the Common­ wealth and of a State when it has been signed on behalf of the Commonwealth and has been signed on behalf of the State with the authority of the Parliament of the State or, having been signed on behalf of the State without that authority, is approved by the Parliament of the State.

2. Notwithstanding that in this Agreement all the States of N e w
' South Wales, Victoria, Queensland, South Australia, Western Australia

and Tasmania are named as parties, this Agreement shall operate as

an

an agreement between the Commonwealth and the State or States in respect of which it comes into force as fully and effectually as if the State or States in respect of which it comes into force were the only State or States named as parties.

3. The Commonwealth shall provide for or secure the performance ; by it and its authorities of the obligations of the Commonwealth under ' this Agreement and each of the States shall provide for or secure

the performance by that State and its authorities of the obligations

of that State under this Agreement.

PART II—INTERPRETATION

4. In this Agreement each State named as a party in respect of which the Agreement comes into force is referred to as a 'State' and, except where the context otherwise indicates, the expression 'the States' means all of those States.

5. Where in this Agreement a Minister of State of the Common­ wealth or of a State is referred to, the reference shall include a Minis­ ter or other member of the Federal Executive Council or Minister of the relevant State, as the case may require, acting on behalf of the Minister referred to.

6. In this Agreement, unless the contrary intention appears or the context otherwise requires—

' aged person ' means a person who has reached the age that is determined by the Commonwealth as pensionable for aged persons;

' dwel l ing' means a dwelling-house or flat and includes such fences, outbuildings and other improvements and such con­ nexions for sewerage, drainage, water, electricity, gas and	other services as are provided or are reasonably required to
be provided for the dwelling-house or flat;

' family dwelling ' means a dwelling constructed or purchased by a State Housing Authority as being suitable for allocation to a family unit consisting of a couple, with or without children, or of a parent or guardian with one or more children;

' financial year ' means a period of twelve months commencing on

the first day of July;

' Housing

P 2 3 7 9 3 — 3 1

' Housing Authority' in relation to a State, means—

(a)	in the case of New South Wales—The Housing Commission of New South Wales;
(b)	in the case of Victoria—the Housing Commission constituted under the Housing Act 1958 of that State as amended and in force for the time being;
(c)	in the case of Queensland—The Queensland Housing Commission;
(d)	in the case of South Australia—the South Australian Housing Trust;
(e)	in the case of Western Australia—The State Housing Commission constituted under the State Housing Act 1946 of that State as amended and in force for the time being; and
(f)	in the case of Tasmania—the Director of Housing holding office under the Homes Act 1935 of that State as amended and in force for the time being;

' the Home Builders' Account ' means the account of a State referred to in clause 23 and, if that account is incorporated into another account or consolidated with other accounts as mentioned in sub-clause (2 . ) of that clause, means the account resulting from the incorporation or consolidation;

' the Minister' means the Minister for Housing of the Common­ wealth or other Minister of State of the Commonwealth for the time being responsible for the administration of this Agreement for the Commonwealth;

' the State Minister' means the Minister of State of the State for the time being responsible for the administration of this Agreement for the relevant State.

7.   In this Agreement, unless the contrary intention appears—

(a)	a reference to a Part or to a clause is to a Part or a clause of this Agreement, as the case may be;
(b)	words importing the masculine gender also import the feminine and, where appropriate, the neuter; and
(c)	words in the singular number include the plural and vice versa.

P A R T

P A R T I I I—FINANCIAL ASSISTANCE

8 .—(1 . ) During the financial years of this Agreement the Common­

wealth will provide financial assistance to the States for welfare housing purposes by way of advances upon and subject to the terms of this Agreement.

(2.) The financial years of this Agreement shall be the five financial years commencing on the first day of July in the years 1973, 1974, 1975, 1976 and 1977.

9 . — ( 1 . ) Of the total amount of the advances by the Common­ wealth to the State under this Agreement in respect of a financial year, portion (in this Agreement referred to as Housing Authority advances) shall be for allotment by the State to the Housing Authority of the State for the provision of housing in accordance with Part IV and the other portion (in this Agreement referred to as Home Builders' Account advances) shall be for payment into the Home Builders' Account of the State for application in accordance with Part V.

(2 . ) Subject to sub-clause (3 . ) of this clause, the amount of the Home Builders' Account advances to be made to a State in respect of a financial year shall be not less than 20 per centum nor more than 30 per centum of the total amount of the advances to be made by the Commonwealth to the State under this Agreement in respect of the financial year.

(3 . ) Where a State has in each of the two financial years immediately preceding the first day of July 1973 allocated to its Home Builders' Account from the amount set aside for housing within the meaning of sub-section (2 . ) of section 3 of the States Grants (Housing) Act 1971 in excess of 30 per centum of that amount, the State may, if at the request of the State Minister the Minister so approves, allocate as Home Builders' Account advances in respect of a financial year of this Agreement more than 30 per centum of the total amount of the advances under this Agreement in respect of that

financial	year.
10 .—(1 . ) Each State shall, not later than the fifteenth day of May preceding the beginning of a financial year of this Agreement, inform the Minister of the amounts that the State wishes the Commonwealth to advance to it under this Agreement in respect of the financial year for—

(a) the provision of welfare housing by the Housing Authority of the State; and

(b) payment to the Home Builders' Account of the State.

(2 . )

(2.) After consultation with the State Minister on the requirements of the State for welfare housing, during which regard shall be taken, among other relevant matters, of the numbers seeking assistance, the cost of land and of dwelling construction and the capacity of the State to use advances, the Minister shall determine the amounts to be advanced to the State in respect of the financial year as Housing Authority advances and as Home Builders' Account advances in accordance with clause 9.

11. The advances to be made by the Commonwealth to a State under this Agreement in respect of a financial year shall be made available by the Commonwealth during that financial year by equal monthly instalments unless otherwise agreed between the Treasurer of the Commonwealth and the Treasurer of the State.

12 .—(1 . ) Each advance made by the Commonwealth to a State under this Agreement or so much of each advance as for the time being remains unrepaid by the State shall until repayment as provided in clause 13 bear interest computed from the date upon which the advance is made.

(2.) The rate of interest shall b e —

(a)	in respect of Housing Authority advances—4 per centum per annum; and
(b)	in respect of Home Builders' Account advances—44 per centum per annum.

(3 . ) A State will on the thirty-first day of December and the thirtieth day of June of a financial year during which advances are made to the State by the Commonwealth under this Agreement pay to the Commonwealth the interest that has accrued on those advances up to the date of the payment of the interest.

13 .—(1 . ) Each State will repay to the Commonwealth the amount
of each advance made to the State under this Agreement, and will

pay the interest thereon as provided in clause 12 other than that

payable under sub-clause (3 . ) of that clause, by equal annual instal­
ments of principal and interest so that the amount of the advance,

together with the interest, will be repaid in 53 years from the begin­ ning of the financial year next succeeding the financial year in respect of which the advance was made, the first such instalment being payable on or before the end of the financial year next succeeding the financial year in respect of which the advance was made.

(2 . ) Accounting procedures in respect of the repayment of advances will be as agreed upon between the Treasurer of the Commonwealth and the Treasurer of each State or, in default of agreement, as deter­ mined by the Treasurer of the Commonwealth, but nothing in this, sub-clause shall affect the other provisions of this Agreement.

P A R T

P A R T I V — H O U S I N G A U T H O R I T Y A D V A N C E S

14. Hous ing Author i ty advances shall be used by the State for the provision through its Hous ing Authori ty of welfare housing in accord­ ance with this Agreement and, without prejudice to the generality of the foregoing, may be used by the Housing Authori ty for the following pu rposes—

(a) to meet the costs of acquisition and development of land primari ly for residential purposes;

( b ) to meet the cost of construct ion of dwellings;

(c)	to meet the cost of purchase and upgrading and renovation of dwellings, and of substantial improvements to its existing dwellings but not so as to include the cost of maintenance of any dwellings; and
(d)	subject to the approval of the Minister, to provide bridging
finance for communi ty amenities that are not the

responsibility of the Hous ing Authori ty .

15 .—(1 . ) Dwellings for the provision of which Housing Author i ty advances have been used and which become available for allocation dur ing the period of five years commencing on the first day of January 1974 shall be allocated by the Housing Authori ty of the State for rental or for purchase by applicants for housing assistance in accordance with this clause and the other provisions of this Par t .

(2 . ) T h e dwellings shall be allocated so t h a t —

(a) not less than 85 per centum of the family dwellings that are

allocated for the first t ime;

(b)	all of the dwellings built for couples, without dependants, of which the main breadwinner is an aged person or an invalid; and
(c)	all of the dwellings built for single aged persons and for invalids,

i r e allocated to families and other persons who respectively satisfy

the needs tests set out in clause 16.

(3 . ) Subject to the granting of priorities in cases of urgent need, dwellings shall be allocated to persons in order of lodgement or of acceptance by the Housing Authori ty of applications for housing assistance.

(4 . ) A Housing Author i ty shall not be required by the provisions of this clause to allocate a dwelling to a family or other person where the circumstances are such that, in the opinion of the Housing Authori ty , the family or other person does not require housing assistance of the nature that is provided for by this Part .

1 6 . — ( 1 . )

16 .—(1 . ) T h e needs tests referred to in sub-clause (2 . ) of clause 15 for the purpose of the allocation of dwellings a r e —

(a) for a family, which shall consist of not less than a couple,

with or wi thout children, or of a parent or guardian with one or more chi ldren—that the average gross weekly income of the main breadwinner (exclusive of any overtime and child endowment payments ) dur ing the six months immedi­ ately pr ior to the allocation of the dwelling does no t exceed—

(i) where the family does not include more than two

ch i ld ren—85 per centum of average weekly earnings;

(ii)    where the family includes more than two children— 85 per centum of average weekly earnings plus two dollars for each child beyond the second;

(b)	for a couple, without dependants, of which the main bread winner is an aged person or an inval id—that the gross weekly income of the main breadwinner (exclusive of any over t ime) does not at the t ime of allocation of the dwelling exceed 60 per centum of average weekly earnings;
(c)	for a single aged person or an invalid—that the gross weekly

income of that person at the t ime of allocation of the dwell­ ing does not exceed 40 per centum of average weekly earnings.

(2 . ) Fo r the purposes of sub-clause (1 . ) of this clause ' a v e r a g e

weekly earnings ' means the average weekly earnings per employed male unit in the State or in Austral ia (as to which the State may elect) dur ing the December quar ter in respect of which statistics were last published by the Commonwea l th Statistician pr ior to the da te of allocation of the relevant dwelling.

17 .—(1 . ) At the initiative of the Minister and with the concurrence of the State Minister or Ministers concerned or at the request of the State Minister or Ministers concerned, the Minister may at any time vary all or any of the needs tests provided for by clause 16 either generally in respect of a State or States or specifically in relation to specified categories of persons or to localities or locations.

(2 . ) A variation under sub-clause (1.) of this clause shall be in writing under the hand of the Minister and as soon as practicable after a variat ion is made a copy shall be forwarded to the Minister for Hous ing of each State.

18. Each State will ensure that the number of family dwellings allocated by the Hous ing Authori ty of the State during each of the five calendar years commencing on the first day of January 1974 to persons eligible as families under this Agreement shall be at least the equivalent of the sum of—

(a) the total number of the family dwellings for the provision of

which Housing Authori ty advances have been used and which become available dur ing the relevant calendar year for allocation for the first t ime; and

(b) 25 per centum of the number of the family dwellings for the provision of which advances by the Commonweal th under this Agreement and under previous Commonweal th-Sta te Hous ing Agreements have been used and which become available dur ing the year for re-allocation by the Housing Author i ty by way of rental vacancies and of reversion or revesting of dwellings that had been sold.

19 .—(1 . ) Subject to sub-clause (2 . ) of this clause, the Housing Authori ty of a State shall not sell more than 30 per cen tum of the family dwellings for the provision of which Housing Authori ty advances have been used and which are completed or purchased during the period of five years commencing on the first day of January 1974.

(2 . ) In the case of the State of Tasmania the percentage of family dwellings referred to in sub-clause (1 . ) of this clause that may be sold shall no t exceed—

(a)	during the year commencing on the first day of January 1974—50 per cen tum; and
(b)	during the year commencing on the first day of January 1975—40 per centum.

(3.) A dwelling that may be sold under sub-clause (1 . ) or (2 . ) of this clause shall be sold only to a purchaser who represents a family the income of whose main breadwinner at the t ime of sale does not exceed the relevant income limit referred to in paragraph ( a ) of sub­ clause (1 . ) of clause 16 (as at any t ime varied in accordance with	clause 17) except that a dwelling may be sold to the Director of	Defence Service H o m e s to enable such a purchaser to purchase the
dwelling from the Director in order to obtain assistance unde r the Defence Service Homes Act 1918-1973 as amended from time to time.
(4 . ) Except with the approval of the Minister, sales of family dwellings in conformity with this clause shall be made on terms under contracts of sale.
(5 . ) The State shall ensure that a purchaser of a family dwelling will not be entitled to dispose of the dwelling (except by release or resale to the Housing Author i t " of his interest in the dwelling) during the

the per iod of not less than five years after the date of sale and tha t after the expirat ion of that period a purchaser w h o proposes to sell a family dwelling may be required by the Housing Authori ty to offer to the Hous ing Authori ty the release or resale of his interest in the dwelling on the basis of the fair market value of the dwelling and the land on which it is built at the t ime of the offer.

(6 . ) Noth ing in this clause shall preclude the sale or other disposal by the Hous ing Authori ty of the State, subject to the approval of the Minister, of land on which a dwelling is erected where the land is required for public purposes not of a residential character or in o ther circumstances which the State establishes to the satisfaction of the Minister justify the sale or disposal.

2 0 . — ( 1 . ) Dwellings built with Hous ing Authori ty advances and

completed after the thirty-first day of December 1973 shall not be sold for a price that is less than one half of the sum of the cost to the Hous ing Authori ty of the dwelling and the land on which it is built and the fair marke t value of the dwelling and the land on which it is built at the date of sale.

(2 . ) T h e interest charge, which shall include an element for the costs of administrat ion by the Hous ing Author i ty of the contract of sale, to purchasers of dwellings shall not be less than 5 per cen tum per a n n u m nor more than 5 | per cen tum per annum.

2 1 . A State shall ar range for the financial position in regard to the rental activities of its Hous ing Author i ty to be reviewed at least once in each financial year and shall ensure that rents are adjusted whenever an increase would appear to be justified.

22 . T o the max imum extent reasonably prac t icable—

(a)	dwellings built with Housing Authority advances shall be intermingled with dwellings privately constructed; and
(b)	a State Housing Authority will acquire some blocks in areas
developed or to be developed privately and will construct and
let dwellings on those blocks.

P A R T V — H O M E B U I L D E R S ' A C C O U N T A D V A N C E S

2 3 . — ( 1 . ) Each State shall pay the H o m e Builders ' Account

advances made to the State to an account in the public accounts of the State to be known for the purposes of this Agreement as ' the

H o m e Builders ' A c c o u n t ' .

(2 . ) A State may arrange for the H o m e Builders ' Account to be
incorporated into the account established and opera ted unde r that
n a m e for the purposes of the 1956-1966 Hous ing Agreement or into
the

the account opened and mainta ined in accordance with section 7 of the States Gran t s (Hous ing) Ac t 1971 or for all three of those accounts to be consolidated but any such incorporat ion or consolida­ tion shall not affect the operat ion of this Par t with respect to loans from H o m e Builders ' Account advances unde r this Agreement .

(3 . ) T h e H o m e Builders ' Accoun t shall be credited also with the moneys received by the State f rom building societies and approved lending authorit ies in repayment of principal and interest in respect of loans made by the State to those societies and authorit ies under this Agreement and shall be debited with the repayments of principal and the payments of interest payable by the State to the Commonwea l th under clause 13 in respect of H o m e Builders ' Account advances to the State under this Agreement and with any expenses incurred by the State in providing finance for prospective h o m e owners in accordance with this Agreement .

(4 . ) T h e moneys standing to the credit of the H o m e Builders ' Account (after allowing for amounts with which the Accoun t is to be debited unde r the last preceding sub-clause) shall be used by the State for the purpose of the provision of finance for prospective h o m e owners in the State by way of loans to terminat ing building or co- operative housing societies ( in this Par t referred to individually as a ' soc i e ty ' ) or to a lending author i ty of the State approved by the Minister so that the societies or the authori ty may make loans (in this Par t referred to individually as ' a loan to a h o m e o w n e r ' ) t o assist the borrowers to build or purchase homes for themselves and their families.

2 4 . — ( 1 . ) T o be eligible to obtain a loan to a home owner the borrower will be required to represent a family which consists or will consist of not less than a couple, with or without children, or of a parent or guardian with one or more children, of which the average gross weekly income of the main breadwinner (inclusive of overt ime and exclusive of child endowment payments) dur ing the six months immediately pr ior to application for the loan does not exceed—

(a ) where the family does not include more than two ch i ld ren—

(b) where the family includes more than two children—95 per 95 per centum of average weekly earnings; cen tum of average weekly earnings plus two dollars for
each child beyond the second.

(2 . ) F o r the purposes of sub-clause (1 . ) of this clause ' a v e r a g e

weekly e a r n i n g s ' has the meaning at t r ibuted to that expression	in
sub-clause (2 . ) of clause 16.

(3 . ) At the initiative of the Minister and with the concurrence of
the State Minister or Ministers concerned or at the request of the

State Minister or Ministers concerned, the Minister may at any t ime

vary

vary the needs test provided for by sub-clause (1 . ) of this clause either generally in respect of a State or States or specifically in relation to specified categories of persons or to localities or locations.

(4 .) A variation under sub-clause (3 . ) of this clause shall be in writing under the hand of the Minister and as soon as practicable after a variat ion is m a d e a copy shall be forwarded to the Minister of Housing of each State.

(5 .) Where a society or lending authori ty has entered into an obligation before the first day of July 1973 to make a loan to a borrower of moneys to be provided from any of the accounts men­ tioned in sub-clause (2 . ) of clause 23 and the whole or a par t of that loan was not made by the thirtieth day of June 1973, the loan or the balance of the loan, as the case may be, may be made from moneys standing to the credit of the H o m e Builders ' Account notwithstanding that the average gross weekly income of the main breadwinner in the family exceeds the relevant limitation in sub-clause (1 . ) of this clause.

25. A loan to a home owner shall not be made except on the con­ dition that the borrower shall be bound to provide an equity of not less than 3 per cen tum of the valuation by the society or lending authority of the proper ty in respect of which the loan is made .

26 . The amoun t that is charged by the society or lending authori ty in respect of a loan to a home owner by way of interest and manage­ ment : e e shall not exceed the equivalent, calculated with annual rests, of 5i per centum per annum of the amoun t of the loan that for the time being remains to be repaid.

27 . A loan to a home owner may be made for the purpose of the purchase of a new or previously occupied dwelling and may be made in respect of a dwelling to be purchased from a State Hous ing Authori ty where the dwelling has not been built with Hous ing Authority advances under this Agreement .

P A R T V I — M I S C E L L A N E O U S

2 8 . A State Minister will, upon request by the Minister, supply to the Minister such information relevant to the operat ion of this Agreement in respect of the State as is reasonably so requested.

29. This Agreement shall be known and may be referred to as ' the

1973 Housing A g r e e m e n t ' .

I N WITNESS WHEREOF, &C.

F A R M