Owners of earthquake-prone buildings can now celebrate as the government has finally released the eligibility criteria for its earthquake-prone building loan scheme.
The Residential Earthquake-Prone Building Financial Assistance Scheme aims to provide financial support to unit owners who are having a hard time dealing with quake-strengthening costs. To be eligible for the scheme, the applicant must be a New Zealand citizen or a permanent resident in the country and should also be a unit owner-occupier. They also need to prove that they can’t get finance from a lender.
“Fixing an earthquake-prone building where there are many unit owners can be a complex initiative to undertake. Getting the finance to do this work can prove difficult if not impossible for some people in this situation,” Minister for Building and Construction Jenny Salesa said, as reported by Fuseworks Media.
“Without the support of low-interest loans like these, some unit owners may be forced to sell if they’re not able to earthquake strengthen their home. We’re pleased we can now give these unit owners some certainty by releasing the criteria for this important financial lifeline.”
Finance Minister Grant Robertson blamed rising insurance premiums and other changes in the insurance market for the sky-high costs faced by unit owners.
“By providing loans of up to $250,000 for unit owners, we can ensure more people can do the remediation work needed to stay in their homes,” he said. “From today, unit owners can register their interest. They’ll be informed as soon as applications [can be] made for the loans. The key thing is that they know the criteria and can start having conversations with their body corporates.”
