Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1921-12-31
HOME BUILDING LAW
State Home Building Department Legisla-
tion-Facts Regarding Law Great
ing II and It's Provisions

Pierre.-The law creating state
Home Building department for the pur-
pose of extending the credit of the state
and loaning money on real estate secur-
ity to encourage the building Of homes
upon which the state supreme court has
ruled, was enacted by the last general
assembly and given Governor McMas-
ter's approval on March J. 1921.
1t calls for the organization of de-
partment to be known as the Home
Building Board, within the already es-
tablished rural credit department and
appointment by the Governor of a Home
Building Commissioner, who will be in
direct charge of the work This board
is authorized to issue bonds payable by
the state in any sum not exceeding
s50O,OO0 for the biennial period.
Money derived from these bond sales
is to be loaned at a rate not exceeding
one and one half per cent more than
that which the bonds draw, TO residents
Of the state Applicants for such loans
must be the heads of families and the
owner in fee simple of an unjncumbered
city or town lot, upon which the home
is to be built. The amount loaned to
any one borrower is restricted to 81 900
and no loan shall be made which will
exceed 90 per cent Of the total cost Of
the building. The borrower must pos
sess in cash the other twenty per cent
of the construction cost and must turn
this amount over to the city or town
treasurer within five days after his ap-
phcation has been given final approval
This 20 per cent is to be placed in the
municipal home building fund
The law requires that each loan shall
be secured by first mortgage on the real
estate upon which the home is con
structed. The loans are payable on the
amortization plan in "A equal monthly
Installments. The mortgagor must agree
to pay all taxes and assessments against
the property and must keep the build.
ing safely insured for the benefit of the
state in a sum equal to the total amount
due under the mortgage at all times
Applications for loans under this law
must be filed first with the City Auditor
or Town Clerk in the municipality in
which the property offered as security is
located. The governing body Of the
town or city shall have made a written
appraisement of the property and re
port upon the applicant and the nature
and cost of the proposed structure If
this appralsement and report meet with
the requirements of the home building
board, the application may be approved
by the city or town governing body. No
application, however, can be approved
by any city or town until resolution
cOnsenting to the liabilities and respon
siblities of that city and town has been
regularly adopted and has become efiec.
tive.
The application aud municipal report
are thea forwarded to the state board
If this board passes upon the application
the City Auditor or Town Clerk is noti-
lied to that effect and they in turn must
notify the applicant
| In case Of default through failure to
comply with any of the requirements Of
the mortgage and foreclosure is neces-
sary, the States Attorney of the county
in which the real estate is located must
begin the foreclosure action.
| If no person bids the full amount due
upon the mortgage at the foreclosure
sale, together with the costs and ex-
! penses of the sale, the Auditor or Clerk
of the city or town in which the prop
erty is located must bid in the land in
name of the city or town for the full
amount due plus the costs of the action.
The amount due on the certificate OF
sale must be made to the County Sheriff
by the purchaser and this amount is in
turn paid over to the Home Building
Board. In case of the Auditor or Clerk
having to bid in the property in the
name of the city or town they shall pay
the amount due out of the city or town
general fund.
If the property is not redeemed with
in the prescribed time the sherif's deed
is 20 be issued to purchaser. Should "a
town or city fail or refuse to pay the
amount due on the certificate of SALE the
State Tax Commission is authorized to
levy special tax upon all assessable
property within the town or city suffi
cient to pay the amount of the certificate
and costs