Housing Act, 1966

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Loans by housing authority for acquisition or construction of houses.

39.—(1) A housing authority may, subject to regulations made by the Minister for the purposes of this section with the consent of the Minister for Finance, lend money to a person for the purpose of acquiring or constructing a house.

(2) Regulations made for the purposes of this section may, in particular, but without prejudice to the generality of section 5 of this Act, make provision with respect to all or any one or more of the following matters:

(a) 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;

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

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

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

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

(f) 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;

(g) 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;

(h) 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;

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

(j) the transfer by the borrower of his interest in a house in respect of which a loan (other than a loan in relation to which an agreement has been made under subsection (3) of this section) 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 authority.

(3) In case regulations made for the purposes of this section enable a loan by a housing authority under this section to be secured by a second mortgage or a second charge on the house to which the loan relates the authority may, for the purpose of securing the loan, enter into and carry out an agreement.

(4) Where default is made in complying with any regulations under this section or any of the conditions subject to which a loan (other than a loan secured by a second mortgage or a second charge) is made under this section by a housing authority, or subject to which a house in respect of which such a loan is made under this section, is held by the borrower or, in the case of the bankruptcy of the borrower of such a loan, the authority may recover possession of the house (whatever may be its value) under sections 84 to 89 of the Act of 1860 as if the authority were the landlord and the borrower were the tenant.

(5) Where a housing authority recover possession of a house under subsection (4) of this section, all the estate, right, interest and title of the borrower in the house shall vest without any conveyance or transfer in the authority and the authority may use the house for the purposes of any of their functions or sell or otherwise dispose of it as they think fit.

(6) Where a housing authority recover possession of a house under subsection (4) of this section, they shall pay to the borrower a sum equal to the value of the interest in the house at the disposal of the authority, after deducting therefrom the amount of the loan then remaining unpaid, any sum due for interest and all costs incurred by the 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 (7) of this section.

(7) In default of agreement between a housing authority and a borrower, the value of the interest in a house at the disposal of the 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 .

(8) 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.