the district, or by an agricultural worker or employee of substantially the same economic condition employed by the person who is rated in respect of the dwelling. The Local Authority may, however, consent to the continued occupation of the dwelling by a person who, through a change of his circumstances after the grant has been made in respect of the dwelling, ceases to be of the appropriate economic condition.

(2) The rent payable by the occupier shall not exceed the amount of the normal agricultural rent, with an additional amount equivalent to 3 per cent. of the applicant's own expenditure (i.e., cost of the works not covered by grant).

The normal agricultural rent is defined as being

(a) in the case of a dwelling which had not during the past five years been let as a separate dwelling the rent which the Local Authority determine to be that paid by agricultural workers in the district.

(b) in the case of a dwelling which has been separately let as such at any time within the last five years the average amount per week which the Local Authority determine to have been payable during the period of letting.

If, by reason of a general increase of rents in the district the rent determined as in (b) above is less than the rent normally paid by agricultural workers in the district. the rent so normally paid is to be taken as the normal agricultural rent.

(3) The owner of the dwelling shall when required by the Local Authority give them a certificate that the two foregoing conditions have been complied with.

(4) In the event of the tenant assigning or otherwise parting with the possession of the dwelling, it shall not be lawful for any person in consideration thereof to make any payment other than rent or for the tenant to receive, directly or indirectly, any such payment.

These conditions remain applicable for a period of twenty years, and being attached to the dwelling itself, will remain applicable whether or not the dwelling changes hands in the meantime. So long as the conditions continue to have effect they are deemed to be part of the terms of any lease, agreement for a lease, or tenancy of the dwelling, and will be enforceable accordingly.

The conditions are enforceable by action in the County Court. Section 3 (5) of the Act provides that on the application of the Local Authority the county court of the district in which a dwelling is situate may

(a) grant an injunction restraining the breach or apprehended breach of any condition applying to the dwelling (other than the requirement that the owner shall certify the conditions have been complied with);

(b) make an order directing payment to the authority of any sum due to it as a result of the breach of conditions under the Act.

II. Loans.

The conditions applicable where assistance is given by way of loan are, broadly speaking, similar to those which obtain when loans are granted under section 92 of the Housing Act, 1925.

(1) The loan, with interest at the prescribed rate, must be secured by a mortgage of the dwelling.

Provision is made which enables more than one dwelling to be included in the same mortgage, and the security to be offered for the purposes of the mortgage may include lands other than those forming the site of the dwelling. (2) The amount of the principal of the loan must not exceed 90 per cent. of the value of the dwelling after the completion of the works.

(It is perhaps, needless to add that neither must it exceed the estimated cost of the works.)

(3) The mortgage deed may provide for repayment being made either by instalments of principal or by an annuity of principal and interest combined.

(4) The loan may be made by instalments during the progress of the works, but the total to be advanced before completion of the works must not at any time exceed 50 per cent. of the value of the mortgaged security.

It should not, moreover, exceed the estimated cost of the work done up to the particular time.

(5) The loan must not be made except after a valuation duly made on behalf of the Local Authority.

VI.-EXCHEQUER ASSISTANCE.

The contribution of the Exchequer towards the expenses incurred by Local Authorities will be made by way of annual payments for a period of 20 years, and will be an amount equal to one-half of the estimated average annual charges which would be payable by the Local Authority over a period of 20 years in interest and loan redemption on a loan equal to the capital value of the grant made by them in respect of each dwelling.

The Act also provides for the cessation and repayment of the Exchequer contribution in certain circumstances

(i) Where any condition applicable to a dwelling is not complied with the Local Authority will be liable to repay to the Minister a sum equal to the amount of the contributions already made by him in respect of the dwelling, together with compound interest at the prescribed rate on those contributions;

(ii) Where the Minister approves of the repayment by the recipient of a grant made by the Local Authority, the Minister will not be liable to make any further contribution to the Local Authority in respect of that dwelling, and the Local Authority will be liable to repay to the Minister a sum equal to the amount of the contributions already made by him, together with compound interest at the prescribed rate on those contributions.

In both the above cases any sums so repayable will be recoverable as debts due to the Crown. But the Local Authority will not be liable to make repayment where with the consent of the Minister they have agreed to waive repayment by the owner or have suspended his liability to make repayment.

Where the Local Authority show to the satisfaction of the Minister that they have taken all practicable steps to recover a sum due by reason of a breach of conditions, but have failed to recover, the Minister is authorised to remit a sum not exceeding one-half of the sum not recovered by the Local Authority.

VII.—PROCEDURE OF LOCAL AUTHORITIES.

(a) General Scheme.

Attention has already been drawn in Part II of this Circular to the necessity for obtaining approval to a general scheme. When such approval has been obtained the Local Authority will be in a position to deal with individual applications and the following points will require consideration.

(b) Form of Application.

The Schedule to the Act provides that applicants for assistance shall furnish to the Local Authority full particulars of the houses and buildings concerned. For convenience in dealing with applications the Local Authority may find it desirable to adopt a form of application showing the information they will require applicants to furnish.

(c) Plans and Specifications.

It is a matter for consideration in what detail the Local Authority should require particulars of the works to be submitted. Generally the particulars should be such as would enable the Local Authority to judge whether the application comes within the terms of the Act and of their scheme, subject to any checking by visit or otherwise. The requirements as to plans and specifications should be kept as simple as possible but the particulars submitted must enable the Local Authority to judge

(i) whether the estimate for the works is a reasonable one; (ii) whether the dwelling when completed will exceed £400 in value;

(iii) whether when the works are completed the dwelling will be in all respects fit for habitation;

(iv) whether the position and surroundings of the building are such as to require the Local Authority to refuse assistance under section 2 (3) of the Act;

The Local Authority might consider whether the drawings required could be simplified when photographs of the existing buildings are supplied.

The schedule of works and the certificate of their estimated cost as approved by the authorised officer of the Local Authority should be filed, and a reference to them inserted in the Register referred to below.

(d) Valuation.

The information submitted by the applicant should be sufficient to enable the Local Authority to satisfy themselves that the value of the dwelling after the completion of the proposed works will not exceed £400 The valuation of the dwelling is entirely a matter for the Local Authority, but it will be understood that valuations under this Act are to be made on the basis that the completed dwelling will for a period of 20 years be subject to the restrictions of the Act on this point particular attention may be directed to the restrictions as to occupancy and rent contained in section 3 of the Act.

The certificate of value by the authorised officer of the Council should be filed and a reference to it inserted in the Register.

(e) Nature and Extent of Works.

The Local Authority will satisfy themselves that the works to be included in the approved estimates are such as come within the scope of the Act and their approved scheme under the Act. In particular they will satisfy themselves that any works of ordinary repair or upkeep are only such as are incidental to or connected with major works of reconstruction, and that the estimated cost is not less than the minimum contemplated by the Act.

(f) Conditions.

For the purpose of satisfying the conditions prescribed in section 3 of the Act, it will be necessary for the Local Authority to determine the maximum rent chargeable for the completed dwelling, in accordance with (2) of the Conditions of Grant referred to on page 10 above.

(g) Approval.

On approving the Local Authority should issue a certificate indicating that when the approved works have been completed to their satisfaction they will be prepared to make a grant of the amount decided upon.

The certificate should clearly indicate the conditions upon which the grant is to be made, including the conditions which will be

attached to the dwelling for 20 years from the completion of the works. A model form of certificate will be found in the Appendix.

́ (h) Payment of Grant, etc.

When the applicant has completed the work covered by the approval, he will notify the Local Authority and apply for the grant due to him. It will be necessary for the Local Authority at this stage to arrange for the inspection of the dwelling with a view to satisfying themselves that the whole of the work included in the application has been done and that it has been carried out in a proper and workmanlike manner. The certificate of completion by the authorised officer of the Local Authority should be filed and a reference to it inserted in the Register. It is a matter for consideration whether some arrangements should not be made for inspection of the work while it is in progress. This may not be practicable in every case, but no doubt the officers of the Local Authority will in the course of their ordinary duties be able to inspect a proportion of the cases at this stage.

(2) Continued observance of Conditions prescribed by Section 3 of the Act.

The steps to be taken to ensure that these conditions are in fact being observed will require careful consideration by the Local Authority. It will clearly be necessary that they should obtain annually a signed statement from the recipient of the grant certifying that the conditions have been observed during the year in question. As the main conditions relate to the rent and occupancy of the dwellings, these statements will be readily capable of verification, and without any undue elaboration it seems desirable that a test check should be undertaken from time to time.

It will be appreciated that in making their periodical claims for Exchequer Subsidy it will be necessary for the Local Authority to certify that the prescribed conditions have been duly observed, and in order that they may properly so certify, some continued scrutiny will be necessary.

VIII.-ADMINISTRATION AND FINANCE.

(1) Local Authorities for the purposes of the Act.

Section 5 of the Act provides that the Local Authority for the purposes of the Act shall be in counties the council of the county and in county boroughs the council of the county borough.

There is a limited provision for making the council of a county district the authority for the purposes of the Act in place of the County Council. This provision can only be exercised by the Minister where he thinks fit to do so owing to special circumstances or as a result of an application made to him by the council of a county district before the 31st of March, 1927. Before exercising