Answer, 1 to 4:
On January 26, 1945, the Minister of Finance announced the coming into effect of the
National Housing Act, 19-44, and in the course of his announcement made the following statement commenting upon various inquiries received as to whether the act would operate in Saskatchewan and Alberta:
"The government is most anxious that all parts of Canada and all Canadians, whether living in cities, towns or villages or on farms, should be in a position to enjoy the benefits of the National Housing Act. The Canadian parliament in last summer's revision of the act went as far as it could to assure this result. However, if there should be provincial legislation of such a character as seriously to affect the rights of mortgagees, this may prevent prospective home builders from getting loans under the housing act. It must be remembered that these are joint loans, private companies putting up seventy-five per cent and sharing in the ultimate risk of loss. I intend shortly to invite representatives of the Saskatchewan and Alberta governments to come to Ottawa to discuss what steps these governments might take to enable the act to operate within their borders."
This statement was made following a conference during which the representatives of a number of lending institutions had expressed grave concern as to whether, in view of legislation that was already on the statute books or was threatened in one or both of these two provinces, the institutions would be justified in making National Housing Act loans, which are very high percentage loans, in these two provinces, and had pointed out the necessity of action being taken to remedy the situation if the National Housing Act was to operate freely and satisfactorily in these provinces.
Some time later the Minister of Finance had discussions first with representatives of the government of Alberta and later with the government of Saskatchewan for the purpose of discussing the legislation and other factors that were retarding lending under the National Housing Act within each province. Following these conferences, the Alberta government introduced and secured the enactment of legislation at the session of the legislature which has just closed, and lending operations under the act are being actively resumed in that province by a considerable number of approved lending institutions. It is understood that a bill was also introduced and passed at the recent session of the Saskatchewan legislature which was apparently intended by the Saskatchewan government to remove at least certain of the difficulties and the Saskatchewan government was asked to send a copy of the legislation which was enacted to the Minister of Finance, but no copies of the
statute have as yet been received and it is therefore impossible to say if it is likely to result in active lending under the National Housing Act in the province.
There are three approved lending institutions which have never ceased to make National Housing Act loans in the province of Saskatchewan, although operations have been on a limited scale. No lending institution has made any definite statement to the Minister of Finance that it will not be willing to make loans under the National Housing Act in the province of Saskatchewan.
Subtopic: LOANS FOR INDIVIDUALS IN SASKATCHEWAN- SECURITY AGREEMENTS