Housing (Loans and Grants) Act, 1962

Loans by housing authority for acquisition or construction of houses.

11.—(1) A housing authority may, subject to regulations under this section, lend money to a person for the purpose of acquiring or constructing a house in the functional area of the authority or in the functional area of another housing authority with the consent of that authority.

(2) (a) The Minister may, with the consent of the Minister for Finance, make regulations for the purpose of giving effect to this section.

(b) Regulations under this subsection may, in particular, but without prejudice to the generality of paragraph (a) of this subsection, make provision with respect to all or any one or more of the following matters:

(i) the class or classes of persons to whom loans may be made under this section and the minimum contribution to be made at the time of the acquisition or construction of a house by a person to whom a loan is made under this section towards the cost of such acquisition or construction,

(ii) the class or classes of houses in respect of which loans may be made under this section,

(iii) the maximum amount of and the security for a loan under this section and the method of ascertaining the value of a house in respect of which a loan under this section is sought,

(iv) the repayment of loans made under this section, including the manner of and period for such repayment,

(v) the payment of interest on loans made under this, section and the fixing of the rate of such interest,

(vi) the conditions subject to which a house in respect of which a loan is made under this section is held by a borrower during the period until the loan is repaid, and the interest thereon is paid, to the housing authority,

(vii) the personal liability of the owner of a house in respect of which a loan is made under this section for the repayment of any sum due in respect of the loan and for the payment of any sum due in respect of interest on the loan,

(viii) the giving of notice to a borrower requiring him to comply with a condition subject to which a loan is made to him under this section or subject to which a house in respect of which a loan is made under this section is held by him or requiring him to comply with the provisions of any regulations under this section,

(ix) the payment by instalments of loans made under this section in respect of houses in course of construction,

(x) the transfer by the borrower of his interest in a house in respect of which a loan is made under this section by a housing authority at a time when the loan or part of it or the interest thereon or part of it has not been repaid or paid, as the case may be, to the housing authority.

(3) Where default is made in complying with any regulations under this section or any of the conditions subject to which a loan is made under this section by a housing authority, or subject to which a house in respect of which a loan is made under this section is held by the borrower or, in the case of the bankruptcy of the borrower, the housing authority may recover possession of the house (whatever may be its value) under sections 84 to 89 of the Landlord and Tenant Law Amendment Act, Ireland, 1860 , as if the housing authority were the landlord and the borrower were the tenant.

(4) Where a housing authority recovers possession of a house, all the estate, right, interest and title of the borrower in the house shall vest without any conveyance or transfer in the housing authority and the housing authority may use the house for the purposes of any of its powers and duties or sell or otherwise dispose of it as it thinks fit.

(5) Where a housing authority recovers possession of a house in respect of which it has made a loan under this section to a borrower, it shall pay to the borrower a sum equal to the value of the interest in the house at the disposal of the housing authority, after deducting therefrom the amount of the loan then remaining unpaid, any sum due for interest and all costs incurred by the housing authority in the recovery of possession and disposal of the house including the costs incurred by the authority in relation to any arbitration under subsection (6) of this section.

(6) In default of agreement between a housing authority and a borrower, the value of the interest in a house at the disposal of the housing authority shall be, determined under and in accordance with the Acquisition of Land (Assessment of Compensation) Act, 1919 , by a property arbitrator nominated under the Property Values (Arbitrations and Appeals) Act, 1960 .

(7) Where—

(a) land is offered for sale by the Irish Land Commission under any statutory power in that behalf vested in them, and

(b) there is for the time being in force in relation to the land an instrument transferring an interest in the land to a housing authority for the purpose of securing a loan under this section,

the land shall be sold subject to the instrument and to the relevant provisions of this section and any regulations thereunder in addition to any charge, incumbrance or liability subject to which the land is, apart from this subsection, required by law to be sold.

(8) A housing authority shall not make an advance in respect of a house under the Small Dwellings Acquisition Acts, 1899 to 1958, unless the housing authority had decided, before the commencement of this section, to make the advance.

(9) A housing authority may, on such terms as may be agreed upon between the authority and another housing authority, transfer its powers, rights and liabilities under this section to that other authority and, where a transfer is effected under this subsection, the powers, rights and liabilities under this section of the authority by which they are transferred shall cease and the functional area of that authority shall, for the purposes of this section, but not otherwise, be deemed to be part of the functional area of the authority to which such powers, rights and liabilities are transferred.

(10) In this section “borrower” means a person to whom a loan is made under this section and includes the successor in title of a person to whom a loan is made under this section.

(11) This section shall come into operation on such day as the Minister appoints by order.