Weathertight e-news
Issue 6 – May 2010
In this issue we cover:
Financial Assistance Package proposed for leaky homes
The Government has announced a proposed financial assistance package to help homeowners get their leaky homes fixed faster.
The package centres on the Government and local authorities each contributing 25 per cent of agreed repair costs and homeowners funding the remaining 50 per cent backed by a government loan guarantee.
Homeowners will need to be eligible to make a claim under the Weathertight Homes Resolution Services Act 2006 to access the financial assistance package once it is launched.
The proposed 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.
When is it expected the proposed package will become available?
The financial assistance package is dependent on local authorities and banks agreeing to be involved.
Local authorities have until 31 May 2010 to decide if they wish to participate in the financial assistance package. Subject to their decision, the Government and Department of Building and Housing would then work through the details.
The Government hopes to have the package available for owners of leaky homes by early 2011.
What the package means for existing and potential claimants
The intention is that homeowners who currently have claims in the system yet to be resolved will be able to apply for the financial assistance package. This detail will be developed in the coming months.
In the meantime, homeowners who are close to the 10-year build limit can make an application to the Department of Building and Housing to start the claim process.
That’s because under the Weathertight Homes Resolution Services Act 2006, a 10 year limit was set for bringing a claim.
A house has to have been built or altered (if the alterations leak) within 10 years of the date of lodging a claim.
If the claim is eligible and is accepted, this will “stop the clock” and, most importantly, ensure it meets the 10 year limit requirement.
Further information
For more information visit the Department's Weathertightness section online or phone 0800 116 926.
If you have already made a claim, think you might want to, or wish to keep up-to-date with progress, sign up for the Department of Building and Housing’s e-newsletter.
It will deliver the latest information to your email inbox as well as advise of any further developments.