Section 354WA in The Mumbai Municipal Corporation Act, 1888
354WA. [ Power of Commissioner to make advances for the purposes of increasing housing accommodation. [Sections 354WA, 354WB and 354WC were inserted by Bombay 34 of 1954, Section 23.]
(1)Subject to the provisions of this Act and of the bye-laws made thereunder, the Commissioner may with the previous sanction of [Improvements Committee], advance loans to persons-(a)constructing or altering or undertaking to construct or alter buildings intended for poorer classes;(b)carrying out or undertaking to carry out repairs to such buildings :Provided that the Commissioner considers that having regard to the cost of those repairs, or the financial position of the applicant, it is reasonable to give such assistance.(2)Persons referred to in sub-section (1) desiring assistance by way of loan may make an application to the Commissioner in the form prescribed by the bye-laws for a loan to be advanced by way of a mortgage on the security of the building to be so constructed, altered or repaired, and the Commissioner may, after making such inquiry as he thinks necessary and subject to the conditions mentioned in sub-section (3) and the bye-laws made under section 461, advance such loans.(3)Every such loan shall be subject to the following among other conditions :-(a)that the building in respect of which the loan is to be advanced will, when the construction, alteration or repair has been completed be in all respects fit for human habitation and shall be used wholly or mainly for residential purposes;(b)that the amount of the loan with interest thereon shall be secured by a mortgage of the building (including outhouses and other works, if any, connected therewith) together with the site on which they are erected in favour of the Corporation containing such covenants and conditions as may be prescribed in the bye-laws;(c)that the period within which the loan shall be repayable shall not exceed thirty years from the date on which the construction, alteration or repair has been completed;(d)that the amount of the loan shall not exceed sixty per cent of the cost of building irrespective of the period of repayment, and in no case shall exceed Rs. 30,000;(e)that, where the property intended to be mortgaged consists of a leasehold interest, no loan shall be made unless the unexpired period of the lease is not less than forty years from the date of the granting of the lease.
