Victorian cladding loans an unfortunate necessity
Posted on : Thursday, 26 July 2018
Victorian Planning Minister Richard Wynne has announced the
introduction of new legislation that will allow for 'Cladding
Rectification Agreements', allowing property owners and body
corporates to use low interest loans paid through their rates to
finance combustible cladding replacement.
Under the scheme owners will be charged loan repayments via
their council rates over a minimum of 10 years, with costs
transferred with a property if it is sold.
Fire Protection Association Australia (FPA Australia) welcomes
the new legislation and the help it providers owners, but regrets
that such a step is necessary.
"The key importance is on getting buildings rectified and
addressing the safety concerns. Anything that helps achieves that
is positive, and this move is likely to help increase the pace of
cladding replacement in Victoria," said FPA Australia CEO Scott
Williams.
"But that result doesn't change the fact that property owners
have become unfairly responsible for the cost of rectification
through no fault of their own, due to the failure of enforcement
and compliance to building standards."