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Local authorities may assist the erection of houses.
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6.—(1) A local authority may with the consent of the Minister assist the erection of houses to which this Act applies in their functional area in any of the ways following, that is to say:—
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(a) make to a person or public utility society to whom a grant is payable by the Minister under this Act in respect of a house situate within the functional area of the local authority, a further grant not exceeding the amount of the grant payable by the Minister in respect of that house;
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(b) make to any person or public utility society to whom a grant is payable by the Minister under this Act in respect of a house situate within the functional area of the local authority, a loan not exceeding twice the amount of such grant: Provided that every such loan shall be repayable, with or without interest, by instalments or otherwise within a period for which the local authority can themselves borrow money, and shall be secured by a mortgage or charge on such house and on the hereditament upon which such house is situate;
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(c) grant, sell or lease any portion of any land, in the possession of the local authority at the passing of this Act, to any person or public utility society, subject either to a covenant that such person or society will erect on such land a specified number of houses to which this Act applies, or to a covenant that such land will be used solely as additional garden space for a reconstructed house to which this Act applies, and in the case of a sale or lease the price or rent to be paid by such person or society may be less than the price or rent which could be obtained for the sale or lease of such land in the open market;
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(d) execute any works necessary, or incidental to, or tending to promote the development of land suitable to the erection or reconstruction of houses to which this Act applies:
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Provided that the total value, as determined by the Minister, of the assistance granted by any local authority under this section towards the erection or reconstruction of any house or houses to any person or society shall not exceed the total of the grant payable to such person or society in respect of such house or houses by the Minister under this Act.
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(2) In this section the expression “functional area” means—
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(a) in respect of the council of any borough or urban district or the commissioners of any town—the area of the borough, district, or town as the case may be;
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(b) in respect of a county council—the area of the county exclusive of every borough, urban district, or town situated therein: Provided that if the commissioners of a town, with the consent of the Minister, resolve, at a meeting specially convened for that purpose, that their functions under this section be transferred to the council of the county in which such town is situate, and the said council at a meeting specially convened for the purpose agree to the said transfer, the functional area of the said council shall thereupon include the area of such town.
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(3) Any local authority may with the consent of the Minister borrow money for the purpose of this section and moneys borrowed for those purposes shall not be reckoned as part of the total debt of such local authority for the purpose of any limitation on borrowing imposed by or under any statute.
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(4) In this section the expression “local authority” shall not include the council of a rural district in the county of Dublin.
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