Councils show their support for leaky homes finance package

The leaky homes financial assistance package has the in principle support of all eight councils in communities most directly affected.

'Collectively, these councils represent around 90 percent of current leaky home claims,' says Building and Housing Minister Maurice Williamson. 'Local Government New Zealand describes this as a 'resounding endorsement' by the main affected councils.'

The eight councils are Auckland, Christchurch, Manukau, Waitakere, North Shore, Tauranga, Wellington and Rodney District.

Local Government has also advised a further 20 councils have indicated their support in principle for the package, bringing the total number of councils on board to 28. The door remains open for other councils to opt in at a later stage depending on their local situation and need.

Discussions on the details of the package with territorial authorities are progressing well and the scheme is on track to be up and running from early 2011.

Under the proposed package, repairs would be funded by a 25 percent contribution from central government, 25 percent from local authorities, and 50 percent by homeowners, backed by a government loan guarantee if required.

What the package means for existing and potential claimants

The intention is that homeowners who currently have claims in the Weathertight Homes Resolution Service (WHRS) will be able to apply for the financial assistance package.

In the meantime, homeowners who have not lodged a claim under the WHRS can apply to the Department to make a claim. If their claim is accepted, that 'stops the clock' on the 10-year limitation for making a claim.

The Weathertight Homes Resolution Services Act 2006 set a 10-year limit 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.

The length of time it will take for homeowners to access the financial assistance will depend on their individual circumstances. However, it is expected to be a lot faster and less costly than the disputes and litigation process.