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No. 11 (July 1955)
– 23 –

NEW HOUSING SCHEMES

The Board of Maori Affairs lends money to Maoris who wish to use the government's group building scheme or the certified house scheme.

The former of these schemes is operating in many towns at present. The principle is that a builder cuts costs by building a group of houses in the same area. The government supports him by undertaking to take over any houses he cannot sell and also supervises design and construction.

The low cost of homes built under this scheme is sometimes remarkable. In one Rotorua case, an 870 sq. ft. home for a family with three children, together with the site and a £120 washing machine, cost £2376. Suspensory loans are offered on these homes.

Although the government only lends up to £2,000, private lending agencies working under the government guarantee scheme will lend up to 90% of valuation up to £2,200 plus suspensory loan. In the Rotorua case, valuation was higher than actual price.

Maoris who have sections near group projects may also benefit from this scheme.

Under the certified house scheme, a builder, without having a purchaser in view, may submit plans and specifications of a proposed dwelling to the State Advances Corporation and get an undertaking that it will lend money to a suitable purchaser. The Department of Maori Affairs would advance money on any house built under this scheme.

Advantages of these schemes are that the buyer gets a government checked and supervised house. He is also saved the trouble of arranging the building contract and finding a section if he has none. The Department of Maori Affairs will give guidance to anyone who is interested in the schemes.