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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."