WEDNESDAY, MARCH 2, 1977
-5-
INITIAL BUILDING PROGRAMME UNDER HOME OWNERSHIP SCHEME BEGINS
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SITES WITH A POTENTIAL CAPACITY ON DEVELOPMENT OF 35,000 FLATS OR SO IN THE HOME OWNERSHIP SCHEME HAVE BEEN IDENTIFIED AND THE GOVERNMENT IS NOW PROCEEDING WITH THE FIRST PHASE OF AN INITIAL BUILDING PROGRAMME OF 7,200 FLATS ON FIVE OF THESE SITES, SAID THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE.
REVEALING THIS IN HIS BUDGET SPEECH TODAY. MR. HADDON-CAVE SAID CONSTRUCTION OF THE 7.200 FLATS WOULD BEGIN WITHIN THE NEXT FEW MONTHS, AND SO THE DRAFT ESTIMATES FOR 1977-78 PROVIDED FOR THE TRANSFER, FROM THE GENERAL REVENUE INTO THE HOME OWNERSHIP FUND, OF AN INITIAL SUM OF $102.5 MILLION.
HE SAID THE HOUSING AUTHORITY HAD AGREED TO BE THE GOVERNMENT'S AGENT FOR DESIGNING, BUILDING AND SELLING THE FLATS.
MR. HADDON-CAVE SAID: +THE HOME OWNERSHIP SCHEME HAS NOW BEEN DEVISED TO ASSIST HOUSEHOLDS WHOSE MONTHLY INCOME DOES NOT EXCEED $3,500 AND WHO, ADDITIONALLY, SATISFY CERTAIN OTHER CRITERIA OF ELIGIBILITY TO BECOME HOME OWNERS.
+THESE HOUSEHOLDS WILL BE ABLE TO BUY FLATS AT COST, UNDER CERTAIN CONDITIONS OF SALE, INSTEAD OF AT OPEN MARKET VALUE AND THE GOVERNMENT IS ARRANGING A PACKAGE OF SUITABLE MORTGAGE FACILITIES TO ENABLE THEM TO MEET THE DEBT REPAYMENTS, SAID THE FINANCIAL SECRETARY.
+BEFORE WE REACH THE STAGE OF INVITING APPLICATIONS FROM MEMBERS OF THE PUBLIC TO PARTICIPATE IN THE SCHEME, IT WILL BE NECESSARY FOR THE HOUSING AUTHORITY TO PRICE THE FLATS, TO WORK OUT THE PROCEDURES AND CONDITIONS FOR SELLING THEM AND TO MAKE ADEQUATE CONVEYANCING ARRANGEMENTS.+
MR. HADDON-CAVE SAID THE WORKING PARTY SET UP BY THE GOVERNMENT LAST JULY WITH THE TASKS TO CO-ORDINATE THE EFFORTS OF VARIOUS DEPARTMENTS INVOLVED IN PLANNING THE PRODUCTION OF FLATS FOR SALE- TO WORK OUT A PRACTICAL SCHEME OF MORTGAGE FACILITIES AND TO DECIDE HOW AND BY WHOM, SUCH A SCHEME SHOULD BE MANAGED, WOULD NOW NEED TO ENTER INTO FORMAL NEGOTIATIONS WITH BANKS AND OTHER FINANCIAL INSTITUTIONS TO DETERMINE UNDER WHAT CONDITIONS AND TO WHAT EXTENT THEY WOULD BE PREPARED TO PROVIDE SUITABLE MORTGAGE FINANCE.
+WHEN WE REACH THE STAGE WHERE THESE ARRANGEMENTS ARE BEING FINALISED, THE GOVERNMENT WILL NEED TO APPOINT A CENTRAL AGENCY OF SOME KIND TO VET APPLICATIONS FOR MORTGAGE LOANS, HE ADDED.
MR. HADDON-CAVE SAID THE GOVERNMENT'S ORIGINAL INTENTION WAS TO SELL THESE FLATS ONLY TO PERSONS ALREADY LIVING IN PUBLIC HOUSING ESTATES SO AS TO MAKE ROOM FOR OTHERS MORE IN NEED OF LOW-RENT ACCOMMODATION TO MOVE IN. BUT SUBSEQUENTLY, THE EMPHASIS SHIFTED TO THE PROMOTION OF HOME OWNERSHIP AS A DESIRABLE, SOCIAL OBJECTIVE IN ITS OWN RIGHT.
ON PUBLIC