Tauranga City Council is leaving its decision on the government's latest leaky homes offer until the last minute.
The offer is based on government and local authorities each contributing 25 per cent, and affected homeowners funding the remaining 50 per cent, of leaky home repairs.
Tauranga City Council is not discussing the government's offer on sharing the leaky home repairs bill until the day a response is asked for.
The government has asked the council to respond to its offer by Monday, May 31 - the same day Tauranga City Councillors will be discussing it.
It is a difficult decision for councillors because the number of leaky homes in Tauranga could be as many as 686 and adopting this scheme would cost ratepayers up to $36 million if all eligible leaky homeowners take up the offer.
Estimates are based on average repair costs of $212,000 per claim, making the council's quarter share worth $53,000 per house.
The uptake estimate is that between 50-70 per cent of leaky homeowners will use the scheme if it is available, which will leave ratepayers with a bill between $3 million and nearly $25.5 million.
Tauranga City Council is only liable for its 25 per cent share of repair bills if it was the building certifier.
Where a private certifier inspected and passed the building, the government will still pay 25 per cent but the homeowner will have to fund 75 per cent of the costs.
To enter the scheme, leaky homes have to be less than 10 years old, and homeowners forgo their right to sue the council or government.
The package is going to be available from July 1 until June 30, 2015.



6 comments
FLUSH THE
Posted on 01-06-2010 16:27 | By The Master
Perhaps Moyor Crosby should provide a guarantee to ratepayers for any excess over $24 million ? Then watch the "fast" steps unfold at lace to avoid that one ! ! ! ! ! ! ! ! ! ! !
LEAKY HOMES TCC TRUE PICTURE
Posted on 29-05-2010 15:25 | By The author of this comment has been removed.
As usual, Mayor Crosby is a little bit short in the maths department (he should get a 12 digit calculator) as by my assessment when taking on board the reliable industry estimate of 89,000 homes with a total repair bill of $23 billion, Tauranga City share of this will be at least 5% of that because of its predilection to build the chilly-bin type of home, i.e. $1.15 billion in repair bills and if 25% is TCC ratepayers share under the Government scheme - that is potentially $260 million for starters, not $24 million. Perhaps Mayor Crosby can explain precisely how he s whittled down Council liability to that lower figure so that ratepayers and his fellow Councillors are clear about this. Is it achieved by Council slithering out from under, hiding its head in the sand and by putting up the private building certifiers protective shield? Just spell out how he reaches his conclusion for a change and be specific. Mr. Crosby, as the Mayor of Tauranga, would not have been dragged into the loop of the 6 main centres affected by the leaky homes disaster just for the paltry sum of $24 million. In a couple of years, TCC ratepayers will find out exactly what it s really going to cost them and let me spell it out, it won t be only $24 million, which is a fudged, unrealistic figure. This may be the annual interest bill but it certainly won t be the capital sum involved. As the Minister of Building & Construction, Maurice Williamson said on rate increases the amount involved will make your (ratepayers) eyes water . Oh, and to the unlucky Tauranga owners of leaky homes get ready to pick up the tab for 75% of the $1.2 billion repair bill, less whatever (if anything) that Tauranga City Council will contribute to your financial woes. Good luck to you if you are silly enough to believe what s being spun and trundled out currently about the Government Scheme and the TCC plaudits for it which is certainly of no benefit to homeowners or ratepayers. The above does not even take into account the scenario if homeowners elect to litigate and sue Council instead. Councillors should take on board that this disaster could be a major election issue, particularly as there has been no consultation with ratepayers about the implications.
CORPORATE
Posted on 28-05-2010 14:47 | By The Master
DoubleM you are right, the companies have very carefully got themselves out of al the mess and walked away. Ultimate responsibility rests with: - Government for allowing the change in materials and building standards. "TOWN" Hall is as Murray says the "Policeman" and the "enforcer", any well trained and experienced builder knows that the kiln dried timbers would not work and many a quality tradesperson would not follow this new rule. The same applies to various changes in construction methods also such as no air gap in the walls so as the moisture can escape the wall cavity. End result the poor old home owner gets the bill. Little bit like rates really, all the folly of "TOWN" Hall just gets added to rates, "all care and no responsibility" and they all still get paid even to make the mess worse than at the start.
CAT Inc Action On Leaky Homes
Posted on 30-05-2010 12:12 | By The author of this comment has been removed.
Citizens Advocacy Tauranga Inc recently sent a submission to all MPs and local Councils around the country. This pointed out strongly that the respsonsibility (in CATIncs view) to rectify and pay for this disaster is that of Central government. The argument for this being that this is where the problem origionated with the changes in legislation which allowed the building code and standards of design, building and inspection of buildings to be drastically down graded. It is also the most equitable way of paying for the repairs spreading the cost across all NZ taxpayers. Responses were received from a number of MPs and Councils.
We Should Not Pay
Posted on 29-05-2010 10:17 | By The author of this comment has been removed.
Unfortunately what we have seen so far is just the tip of the iceberg and this problem will continue for the next 10 to 15 years as more and more poorly designed and constructed homes come to light. The $300 million estimate quoted above is probably well under the total that will eventually come to light.
Posted on 28-05-2010 15:22 | By The Master
A last minute panic is normal, the real issue is "how the heck do we pay ...". On 19 May the Mayor was recited as saying the cost to "TOWN" Hall will be $20 million that sadly is a smoke screen to the truth. The real cost of all could be $300 million and counting. The worst part is that because "TOWN" Hall contracted out a lot of certification work to Bay Building Certifiers Ltd (Struck off in 2005) home owners will only get 25% from the Government, you only get another 25% from TOWN Hall if they did the certification and that will be maybe $200 million, add that to TOWN Hall debt and Tauranga is broke beyond help That leaves 75% to pay for many home owners unless they get an expensive lawyer to sue the certifier, but they are broke and gone now.
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