Hand-up for owners of earthquake-prone units
Owner-occupiers of units and apartments living in earthquake-prone buildings can now apply for financial support to fix their homes.
The Residential Earthquake-Prone Building Financial Assistance Scheme will help unit owners facing financial hardship over earthquake strengthening costs.
The scheme will be delivered by Kāinga Ora – Homes and Communities, with eligible unit owner-occupiers able to borrow up to $250,000.
Unit-owners will need to meet certain criteria to apply for a loan.
To be eligible for the loan scheme, applicants will need to:
- be a New Zealand Citizen or permanent resident in New Zealand; and
- be a unit owner-occupier.
They will need to demonstrate:
- they cannot get finance from a lender; or
- if offered a loan from a lender, the owner is required to sell their unit when the building is no longer earthquake prone as part of the loan condition; or
- If offered a loan from a lender, it would cause significant financial hardship.
The chief executive of Kāinga Ora also has the discretion to grant loans.
The Scheme is limited to units:
- purchased before 1 July 2017; and
- within a building in an area of high seismic risk, which is two or more storeys in height and contains three or more household units (or is a household unit within a mixed use building); and
- within a building subject to a territorial authority-issued EPB notice.
A review of the scheme is proposed in 12 months following the launch, along with an analysis of take-up (loans issued) and strengthening costs.
You can read the full criteria for the Residential Earthquake-prone Building Financial Assistance Scheme and apply here