By Andrew Steele - 11 Nov 2010
A scheme to help owners of leaky homes has been proposed by
Government. The scheme is expected to come into force early
in 2011.
While the precise terms are not yet known, indications so far
are that:
• the Government will meet 25% of the agreed repair
costs
• the relevant local council will meet 25%
• the homeowners will meet the remaining 50%.
If the homeowner meets bank lending criteria the Government will
guarantee a bank loan to fund the homeowner's 50% share.
In exchange, homeowners will lose the right to sue their local
council or the Crown, but will still be able to sue other liable
parties, such as builders or architects.
Who is eligible for the scheme?
To qualify, applicants must meet all the criteria required to
lodge a claim in the Weathertight Homes Tribunal. The defective
works must have been completed within the last 10 years.
Homeowners may choose to participate in the scheme when it becomes
available even if they have already begun claims under the current
process.
Four councils have so far indicated their support for the
scheme: Auckland Super City, Tauranga, Wellington and
Christchurch. About 90% of leaky buildings currently subject to
claims are within these councils' boundaries.
The Government estimates that approximately 23,500 homes are
eligible for the scheme and around two thirds of them will use the
scheme, costing around $6.3 billion.
If you would like more information please contact our leaky
building team.