COMMONWEALTH HOUSING.
No. 10 of 1928.
An Act to amend the Commonwealth Housing Act 1927.
[Assented to 15th May, 1928.]
BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Short title and citation.
1.—(1.) This Act may be cited as the Commonwealth Housing Act 1928.
(2.) The Commonwealth Housing Act 1927 is in this Act referred to as the Principal Act.
(3.) The Principal Act, as amended by this Act, may be cited as the Commonwealth Housing Act 1927-1928.
Commencement.
2. This Act shall commence on the same date as the Principal Act.
Conditions precedent to any advance.
3. Section nine of the Principal Act is amended—
(a) by adding at the end of sub-paragraph (i) of paragraph (b)the words “, or for the purpose of enlarging a dwelling house of which he is the owner;”
(b) by inserting at the commencement of sub-paragraph (iii) of paragraph (b) the words “except for the purpose of enlarging an existing dwelling house,”;
(c) by inserting in sub-paragraph (iii) of paragraph (b), after the word “loan” (second occurring),the words “and has not repaid it in full”;
(d) by inserting in sub-paragraph (iv) of paragraph (b), after the words “discharge of a mortgage”, the words “or for the purpose of enlarging a dwelling house,” and
(e) by adding at the end thereof the following sub-sections—
“(2) For the purposes of this section any reference to an amount lent or to a loan shall be read as including a reference to an amount used by an Authority for the purpose of a rent purchase agreement.
“(3.) In the case of an Authority which administers more than one housing scheme, it shall be sufficient for the purposes of this section if one of its housing schemes is in accordance with the provisions of this section.”.
Power of Commonwealth to borrow moneys to grant to Savings Bank.
4. Section ten of the Principal Act is amended by omitting sub-sections (3.) and (4.) and inserting in their stead the following sub-sections:—
“(3.) Advances made in pursuance of the last preceding sub-section shall bear such rate of interest and be subject to such terms and conditions of repayment as are agreed upon between the Treasurer and the Savings Bank.
“(4.) Pending the borrowing of moneys in pursuance of this Act, the Treasurer may from time to time advance to the Savings Bank, out of any moneys in the Commonwealth Public Account, sums not exceeding the moneys which the Treasurer is authorized to borrow in pursuance of this Act.
“(5.) For the purposes of sub-section (3.) of this section, all such advances shall be treated as if they were advances made under sub-section (2.) of this section.
“(6.) Any moneys so advanced shall be repayable to the Commonwealth Public Account from the proceeds of any loan raised in pursuance of this Act after the moneys have been advanced.”.
Overview
The Commonwealth Housing Act 1928, enacted by the Australian Parliament, serves as an amendment to the Commonwealth Housing Act 1927. Its primary objective is to enhance the housing provisions by enabling loans for the enlargement of existing dwelling houses and ensuring the availability of funds through the Commonwealth for housing purposes. The Act introduces conditions that allow housing authorities to make loans for enlarging dwellings, provided certain conditions are met, and it establishes the terms under which the Commonwealth can borrow and advance money to the Savings Bank to facilitate these housing activities. The policy objective is to support the expansion and improvement of housing stock, thereby addressing housing shortages and improving living conditions.
Scope and Application
The Commonwealth Housing Act 1928, which amends the Commonwealth Housing Act 1927, applies to authorities administering housing schemes within the Commonwealth of Australia. This Act provides conditions precedent to any advance, including the purpose of enlarging a dwelling house, and stipulates that loans cannot be used for this purpose if the borrower has not fully repaid previous loans or if it would result in the discharge of a mortgage. Additionally, the Act grants the Commonwealth the power to borrow moneys to grant to the Savings Bank, outlining the interest rates and repayment terms that can be agreed upon between the Treasurer and the Savings Bank. The Act also allows for advances from the Commonwealth Public Account to the Savings Bank pending the borrowing of moneys, with these advances being repayable once the loan is raised. The Act’s provisions are applicable to all housing schemes administered by an authority if at least one of them complies with the Act’s requirements.
Key Provisions
The Commonwealth Housing Act 1928 (C1928A00010) amends the Commonwealth Housing Act 1927 (referred to as the Principal Act) to introduce new conditions and provisions related to housing loans and advances. Section 3 of the Act amends section nine of the Principal Act by adding and modifying conditions for housing loans. Specifically, the Act allows loans for the purpose of enlarging a dwelling house if the borrower is the owner (section 3(a)). It also prevents loans for enlarging an existing dwelling house if the borrower has not fully repaid a previous loan (section 3(b) and (c)). Additionally, it disallows loans for enlarging a dwelling house in cases of mortgage discharge unless it is for enlarging the house (section 3(d)). Section 3(e) clarifies that references to loans include amounts used for rent purchase agreements, and it allows compliance with these provisions at the scheme level if at least one housing scheme within an authority complies (section 3(f)).
The Act imposes obligations on housing authorities and borrowers to ensure compliance with the new conditions on housing loans. Authorities must ensure that any housing schemes they administer comply with the new provisions, particularly regarding the conditions under which loans can be granted for enlarging a dwelling house. Borrowers, on the other hand, must ensure they meet the specified conditions to qualify for a loan, such as having repaid any previous loans in full before being eligible for a new loan for enlarging a dwelling house. Failure to adhere to these conditions can result in the denial of a loan application.
Section 4 of the Act modifies section ten of the Principal Act concerning the power of the Commonwealth to borrow money to grant to the Savings Bank. The new provisions allow advances made to the Savings Bank to bear interest rates and repayment terms agreed upon by the Treasurer and the Savings Bank (section 4(3)). The Treasurer is also authorised to make temporary advances to the Savings Bank from the Commonwealth Public Account, up to the amount authorised for borrowing under the Act, with these advances to be repaid from the proceeds of any loans raised under the Act (sections 4(4) and 4(6)). These amendments ensure that the terms of borrowing and repayment are clearly defined and that temporary advances are appropriately managed and repaid.