Housing Act, 1966

Loans by housing authority for reconstruction, repair, and improvement of houses.

40.—(1) A housing authority may, subject to such conditions as may be approved by the Minister, make a loan to a person (in this section referred to as the borrower) carrying out reconstruction, repair or improvement works on a house, provided that the authority is satisfied that—

(a) after the proposed works are carried out, the house will be fit for human habitation,

(b) the proposed works are necessary for the purpose of providing suitable housing accommodation, and

(c) the house is suitable for reconstruction, repair or improvement, as the case may be.

(2) Subject to subsection (3) of this section, repayment of a loan under this section in respect of a house shall be secured by—

(a) an instrument vesting the ownership of the house in the housing authority subject to the right of redemption by the borrower,

(b) by charging the house under the Registration of Title Acts, 1891 and 1942, with the repayment of the loan (together with interest payable thereon),

(c) by deposit with the housing authority of the land certificate issued under the said Acts, in relation to the house, or

(d) where such ownership is already vested in a person other than the borrower subject to the right of redemption of the borrower, an instrument of further charge charging the repayment of the loan (together with the interest payable thereon) under this section on the house and making the said right of redemption subject also to the repayment of the loan (together with the interest payable thereon) under this section.

(3) In case the loan proposed to be made under this section does not exceed two hundred pounds, the housing authority may, at their discretion, make the loan without requiring the security mentioned in subsection (2) of this section.

(4) Any sum due to a housing authority by any person in respect of a loan made under this section may be recovered by the authority from that person as a simple contract debt in any court of competent jurisdiction.

(5) For the purposes of this section, “ownership” shall be such interest or combination of interests in a house as will constitute either a fee simple (including fee farm) interest in possession or a leasehold interest in possession of such number of years unexpired at the date on which the loan under this section in respect of the house is authorised by the housing authority as is equal to or greater than the sum of the term fixed for the repayment of the loan and fifteen years.