Proposed Financial Assistance PackageThe financial assistance package will see the Government meet 25 per cent of homeowners' agreed repair costs, local authorities contributing 25 per cent and homeowners funding the remaining 50 per cent, with a loan guarantee underwritten by the Government, provided claimants meet bank lending criteria.
The package will be voluntary and in addition to the current disputes and litigation process for owners of leaky homes. It is also conditional on homeowners foregoing the right to sue local authorities or the Crown in relation to the claim.
Under the proposal, homeowners would still have the option to pursue other liable parties such as builders, developers and manufacturers of defective building products.
The financial assistance package is dependent on local authorities and banks agreeing to be involved.
As of 27 May 2010, seven of the local authorities most affected by the weathertightness problem have voted to support the financial assistance package in principle.
The councils that have so far indicated their interest in participating are Auckland, North Shore, Waitakere, Wellington, Christchurch, Rodney District and Manukau. Details will now be worked through with local authorities to finalise the financial assistance package.
Discussions are also underway with the banks about the government's proposed loan guarantee and how it would operate. The Government hopes to have the package available for owners of leaky homes early 2011.
Affected homeowners can keep up-to-date with progress on the proposed package by signing up for the Department of Building and Housing’s e-Newsletter. It will deliver the latest information to your email inbox.
For further information visit The Department of Building and Housing.