The Financial Assistance Package (FAP) introduced under the ‘Weathertight Homes Resolution Services’ (Financial Assistance Package) Act will ensure more resources are put into repairing leaky homes.
The FAP is optional for a homeowner. The Government is anticipating that its share of the FAP will be around $1 billion over five years.
This means if a homeowner’s claim is accepted under the FAP, the Government and the City Council will each pay 25% of the agreed repair costs. However, the Council may refuse to participate.
If the Council does not participate, the homeowner must agree to pay 75% of the agreed repair costs under the scheme.
In order to qualify for the FAP under the Act, homeowners must meet certain criteria and conditions prescribed in the Gazette.
Eligibility
Homeowners should submit their FAP applications to the Department of Buildings, showing that (a) Water ingress has occurred and has damaged the property and (b) the dwelling was built (or altered) within 10 years immediately before the claim is lodged.
Once the application is accepted, a Claims Advisor and an Assessor will inspect home and provide an eligibility report.
Homeowners should also lodge a claim with the Department of Building if they are close to the 10-year limit in order to preserve their rights.
Once the claim has been accepted, there are additional criteria that would be applicable, including an undertaking by the homeowner to meet the remaining part of the cost (50% or 75%).
The homeowner must also (a) certify that the property has not been the subject of any previous settlement (b) withdraw from any current legal proceedings against a participating Council and (c) forgo the right to issue proceedings against the Council for damage from the water ingress.
For more information, visit www.dbh.govt.nz/fap-funding-info
www.gazette.govt.nz
Lyndal Yaqub is an Associate at Law Associates and a member of its Civil Litigation and Employment Team based in Manukau. Phone: (09) 2625510
Email: lyndal@lawassociates.co.nz
