Wellington City Councilors voted last night to accept the government's leaky building repair proposal that would see homeowners front up 50% of the cost, 25% be covered by the local authority and 25% be funded by the government.The package was announced i
Wellington City Councilors voted last night to accept the government’s leaky building repair proposal that would see homeowners front up 50% of the cost, 25% be covered by the local authority and 25% be funded by the government.
The package was announced in May. Building and Construction Minister Maurice Williamson said he expected it would cost about $1 billion over five years.
Each council would need to contribute 25% of half the cost to repairs within their region under the scheme.
Wellington City Council has a projected liability of $70 million for leaky building repairs. It has already paid $18 million in leaky home repairs.
It is not yet sure where it will get the money it needs.
“There will be no easy choices for the next mayor and council – they will have to make some tough decisions over whether the costs are met through, for example, rates rises, borrowings – cuts in services or even the sale of council assets,” Wellington deputy mayor Ian McKinnon said.
“The FAP scheme aims to achieve this through a combination of assured contributions from local and central government, and by using the money that homeowners would otherwise spend on legal and expert costs on repairs to their homes. It is also a package that recognises that a number of parties – central and local government included – have to step up to help sort out what would many would call a disastrous chapter in our recent history.”
Mr Williamson has written to councils asking them to decide by October 9 if they want to participate in the scheme.
