18 May 2010
Financial assistance package proposed for leaky homes
The Government has today made an important announcement about a new financial assistance package to help more homeowners get their leaky homes fixed faster.
The proposed 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.
The proposed financial assistance package will be voluntary and is additional to the current disputes and litigation process. It is intended that current weathertight claimants who have not had their claim resolved will be able to apply for the new package.
Under the proposed package, homeowners would need to be eligible to make a claim under the Weathertight Homes Resolution Services Act to apply for the financial assistance package once it is launched.
Those homeowners who participate in the package would forgo the right to sue local authorities or the Crown, in exchange for a combined government and local authority direct payment of 50% of agreed repair costs.
However, homeowners will still have the option to pursue other liable parties such as builders, developers and manufacturers of defective products.
The local authorities are obviously also key to the success of this package. Local authorities have been invited to participate and asked to respond to the Government's offer by Monday 31 May.
Subject to their decision, the Government and Department of Building and Housing would then work with them and retail banks on the details of the package.
The Government hopes to have the package available for owners of leaky homes early 2011.
We will keep you informed of progress. If you have any questions about the package, please don’t hesitate to contact your claims advisor or phone 0800 324 477 or visit www.dbh.govt.nz.
You may also want to subscribe to the weathertight e-newsletter. This will deliver up to date information to your email box. Subscribe at http://www.dbh.govt.nz/Utilities/notifications/subscribe-notifications.aspx.
Jeff Montgomery Manager Client Services Group and Weathertight Services Group
Department of Building and Housing - Te Tari Kaupapa Whare DDI (04) 817 4240, Mobile 027 497 4210, Fax (04) 494 0290 Level 6, 86 Customhouse Quay PO Box 10-729, Wellington, New Zealand Web: www.dbh.govt.nz
29 April 2010
Discussion paper on Unit Title Act regulations
Housing Minister Phil Heatley has today released a discussion paper on proposed regulations to support the new Unit Titles Act.
"The new unit title legislation provides much more clarity around how a unit title development works. The legislation also has the flexibility to allow unit owners to make their own decisions about how their development is run," Mr Heatley says.
Parliament passed the new Unit Titles Act on 1 April 2010. The Act repeals and replaces the Unit Titles Act 1972, which had become outdated and inadequate as a legal framework for the ownership and management of unit title developments.
"Although we've passed the Act, the provisions are not yet in force. Before that can happen we need to prepare some regulations to support the new requirements in the Act," Mr Heatley says.
Mr Heatley says the first part of that process is to give people the opportunity to have their say on draft proposals.
"This discussion paper outlines proposals for regulations, and I would like to hear from the public about how they may affect you or whether you have any other ideas for the regulations."
Further information, including the discussion paper, is available at www.dbh.govt.nz or by phoning 0800 242 243.
01/04/2008
Acquisition boosts Body Corporate Specialists’ business
Body Corporate Specialists Ltd (BCS)’s acquisition of Body Corporate Associates Ltd will see the Auckland-based company almost double the number of properties it administers.
Announcing the deal, BCS Director Andrew Yovich said the purchase complemented the company’s recent strong organic growth.
“An increasing number of people are opting for the advantages of a body corporate structure; consequently, demand for high-quality administration services continues to grow,” Mr Yovich said.
Mr Yovich said the two companies shared similar business practices, philosophies and internal systems, and he did not expect any difficulties in integrating the two portfolios./p>
“People want a hands-on, high-quality service, they want someone who is available around the clock, and they want to be kept informed. The success we have experienced to date is based very much on effective communication, and we will continue to provide that level of service to all our customers 24 hours a day, seven days a week,” he said.
As well as providing commercial and residential body corporate and property administration services, BCS also specialises in resolving weather-tightness issues on behalf of body corporate owners, something Mr Yovich said is an ongoing concern. BCS also offer a three month administration trial free of charge.
02/09/2007
If I suspect my house could have a weathertight problem, but it is slightly older than 10 years, can I claim compensation?
The 10-year "long-stop" limitation under the NZ Building Act means anyone bringing civil proceedings over building work must do so within 10 years of the act or omission that has, in the case of leaky homes, given rise to defects and subsequent damage. The Weathertight Homes Resolution Services Act 2006 similarly imposes a 10-year limitation on the bringing of a claim. If your home is more than 10 years old you can effectively be shut out from getting compensation in the courts and Weathertight Homes Tribunal. But you should apply to the Department of Building and Housing's weathertight services group for an eligibility report. The application and report is free and it will establish your eligibility in relation to the 10-year limitation, and more importantly it serves to "stop the clock" in relation to that limitation.
I've found out I've got a leaking home problem. What should I do?
It is imperative you act quickly. I would recommend you avail yourself of the Department of Building and Housing's full assessment report by lodging a claim. That report will only cost you $500, will establish the eligibility of your claim, and allow you to form a reasonable impression of the work that will have to be carried out to repair your home. It will also provide you with some indication as to the estimated cost of those repairs. I always recommend that owners should try very hard to avoid going into any resolution process (mediation, settlement conference, adjudication or the courts) without having completed the repairs and established the full cost of those repairs.
It seems the Government has escaped liability for paying for home repairs. In your opinion, who is to blame?
While I believe the Government and agencies should bear some liability, it will be determined by the courts - and therefore by leaky-home owners with deep pockets to take the case to the highest court in the land. I also believe in the absence of agencies such as BIA and BRANZ being found liable, then central government should be treating this as the nationwide disaster that it is and come to the rescue - even providing the necessary funding for people to get their homes properly repaired and then assist the owner to go after those that are responsible.
I would like to buy an apartment but how can I be sure that I'm not buying into an expensive problem?
It is imperative you get to grips with shared ownership arrangements that exist for most apartment and townhouse developments - that is the strata title ownership arrangement under the Unit Titles Act, which has a body corporate administering the owners' affairs. The act and rules impose constraints on your ownership that will see you assume very significant responsibilities and liabilities. In most cases you need to be aware you will assume liability for your share of the repairs and maintenance of the common property associated with the complex and the general running expenses of the body corporate. A pre-purchase inspection by an appropriately qualified building surveyor is also an imperative and that surveyor should be instructed to look beyond the confines of the unit you are intending to buy to form a view of the general condition of the entire complex.
Hon Clayton Cosgrove
4/08/2006
Minister welcomes Unit Titles Act submissions
Building Issues Minister Clayton Cosgrove today said he was impressed by the high standard of public submissions received in the government's latest consultation round as part of its review of the Unit Titles Act 1972.
Mr Cosgrove said the submissions were in-depth and encompassed a wide range of issues, from proposed changes for small and stand-alone developments and a code of conduct for professional body corporate managers, to ways for keeping disclosure requirements effective but simple.
“These submissions will be instrumental in helping to develop the finer detail of the proposals, and ultimately deliver workable, relevant legislation,” Mr Cosgrove said.
The 148 submissions were in response to the Options for Change discussion document released in May 2006. They have been analysed and summarised in a report that is now available on the Department of Building and Housing website at www.dbh.govt.nz.
Mr Cosgrove said the review was a crucial one and would impact on the lives of an increasing number of New Zealanders in the years ahead.
“The fact that there will be half a million people living in apartments, townhouses and high-rise buildings in Auckland alone in 50 years shows the importance of the review," he said. "Many families used to live in three-bedroom homes on quarter acre sections, but that is no longer the case. The current Act is 34 years old and no longer meets the needs of these New Zealanders."
Options for Change put forward a range of proposals, including redefining the responsibilities of bodies corporate and unit owners, common property and unit entitlement.
Submissions were received from a wide cross-section of people, including unit title owners, bodies corporate, body corporate managers, local and regional authorities, developers, surveyors, lawyers, other government departments and professional institutions such as the New Zealand Law Society, the New Zealand Institute of Surveyors, the New Zealand Institute of Building Surveyors, the Insurance Council of New Zealand, the Real Estate Institute of New Zealand, the New Zealand Property Investors Federation and the Property Council of New Zealand.
Mr Cosgrove said the submissions would assist the Department of Building and Housing in developing proposals for legislative change. The public will then be able to make submissions on the resulting draft Bill.
Background
Unit title developments are apartments, flats, townhouses, office blocks, shopping centres and other building developments where multiple owners own a type of property know as a unit title, as well as property common to the development.
The titles give ownership to a unit in a building rather than a property right based first and foremost on ownership of land.
The Unit Titles Act 1972 covers the technical and legal aspects of creating and dealing with a unit title.
It also covers the rights and responsibilities of a body corporate – the collective of all owners in a unit title development that manages the building development and the common property. Thirty years ago, when the Act was first introduced, unit title developments were new. Now the variety of ways in which these units are used, and their scale, has broadened considerably.
This review will assess what legislative changes are needed to manage the issues that have arisen since it was first passed. It will also consider how it can provide for intensive, but sustainable, development.
The Options for Change discussion document sought feedback on three broad issues:
- Unit titles: technical and legal aspects of creating, changing and administering a unit title
- Bodies corporate: the need to have one; different types; voting and decision-making; role, duties and functions; financial responsibilities; relationships with developers, members, owners and purchasers; resolving disputes
- Other forms of shared ownership such as cross-leasing and flat-owning companies.
The review is also part of a government package of reviews in housing-related and building areas including:
- The new Building Act 2004 improves control of, and encourages better practice in, building design and construction
- The Residential Tenancies Act review looks at whether the Act balances the needs and obligations of landlords and tenants
- Building industry licensing reforms seek to raise professional standards and protections for consumers
- The review of the Building Code will set future building standards
These initiatives are also being examined in the context of programmes and protocols dealing with sustainable cities, urban design and energy efficiency
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