Leaky home repairs fund to close
"The problem is still there, it’s still quite large and there is still a lot of people still out there who can’t afford repairs." Wellington lawyer Dan Parker
The door will soon close on a fund to assist owners repair leaky homes, despite warnings that the problem is far from over.
Since 2011, leaky home owners have been able to apply for assistance towards repairs, in a bid to get the properties watertight faster, as an alternative to legal action.
Signing up to the fund requires waiving the right to take legal action against the council or government, although damages can still be sought from builders or product manufacturers.
By the end of February, 1453 homes had been repaired – or repairs were under way – with assistance from the fund, at a total cost of $134.8 million.
Figures released by the Ministry of Business, Innovation and Employment (MBIE) show that the Government contributed $33.7m towards the repairs, councils spent $13.9m and the homeowners forked out $87.2m.
However the financial assistance package (FAP) is due to close on July 23.
Wellington lawyer Dan Parker, who has represented more than 500 leaky building owners in legal disputes since 2001, said it was disappointing the scheme had come to an end.
He hoped the Government would look at other ways to help leaky homeowners, as the extent of the issue extended far beyond claims from the FAP, Parker said.
"Overall it’s been a good thing to have made available ... but the problem certainly isn’t at an end. It’s only the tip of the iceberg."
The cost of re-cladding a onebedroom home could be $150,000 to $400,000, he said.
"The problem is still there, it’s still quite large and there is still a lot of people still out there who can’t afford repairs."
According to MBIE data, the majority of claims stemmed from homeowners in Auckland, Tauranga, Wellington, Christchurch, Hamilton and Western Bay of Plenty.
A ministry spokeswoman said under the FAP, qualifying homeowners shared the agreed "actual repair cost" of repairing their homes with the Government and their local council - if the council approved the original work and is participating in the package.
The Government and council each pay 25 per cent of the repair cost and homeowners pay the remaining 50 per cent.