Owners will be aware that a Bill to amend the WHRS Act 2006 has been submitted in Parliament to address the Government’s previously announced intention to support owners suffering from leaky building syndrome.  Key aspects of the Bill are:

1.    Agreed Repair Costs

Agreed repair costs includes not only the repair cost itself but also the associated costs of:

a)    Design work
b)    Project management
c)    Building consent
d)    Alternative accommodation for the Claimant
e)    Storage of the Claimant’s furniture and effects.

2.    Qualifying Claimant

This is anyone who meets the eligibility for financial assistance specified by the Chief Executive by notice in the Gazette.  Clearly this aspect remains unsettled.

3.    Financial Assistance Measures

a)    The financial support facility in the form of direct financial contributions of 25% from each of the Government and the territorial authority (“TA”).  The TA’s support is only where a valid claim against the TA exists.

b)    A credit support facility in the form of a guarantee or indemnity to a lender for the sole purpose of meeting the balance of the agreed repair costs.

The proposed package is voluntary and is supplementary to the current dispute and litigation processes.  Legal costs cannot be recovered as part of the repair costs.

NB:  In any instance where a Body Corporate has a valid claim against the territorial authority, it is, in our view, unlikely that a homeowner and the Body Corporate would accept the 50% settlement offer, as invariably if liability is due by the local authority then, based on current decisions and settlements, the likely outcome would be significantly improved through the judicial process.