Weathertight Homes Resolution Services (Financial Assistance Package) Amendment Bill

Following the Government's 17 May 2010 announcement of its plan for a Leaky Homes Financial Assistance Package designed "to help people get their leaky homes fixed faster", a Bill was introduced on 23 November to amend the Weathertight Homes Resolution Services Act 2006 to facilitate the delivery of the financial assistance package to eligible owners of leaky homes.

The "high-level design parameters" of the financial assistance package are as follows:

• The Crown and (participating) Council will each provide a 25% direct payment to agreed repair costs, in the case of the latter only if the Council signed off the work (as opposed to a private building certifier);

• Eligible homeowners who opt into the scheme must agree not to sue the Council and the Crown (they will still be able to pursue legal action against other parties – eg the builder or architect);

• The Crown will provide assistance to eligible homeowners in accessing bank finance for the remaining agreed repair costs by offering credit support to banks (by way of a limited Crown guarantee or indemnity) for loans made to eligible homeowners who can meet the banks’ lending criteria.

Many of the detailed provisions relating to the financial assistance package are not dealt with in the Bill. The Government's view is that these matters can be addressed administratively by the chief executive of the Department of Building and Housing (DBH). The focus of the Bill is on:

• limiting the liability of the Crown, participating Councils and any other party who agrees to make a contribution (whether financial or otherwise) towards the agreed repair costs;

• removing the Crown’s liability for the failure of repairs made under the financial assistance package and any losses suffered as a result of the actions of DBH or the Crown under the financial assistance package process;

• authorising the Minister to give a Crown guarantee or indemnity in respect of loans for repairs made under the financial assistance package;

• limiting the period in which eligible homeowners may apply to enter the financial assistance package to five years from the date the package becomes operational.

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Last updated: 30 November 2010

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