Changes aim to prevent cost blowout and aid timely repairs.
The Government has introduced modifications to the On-sold programme, aimed at preventing a significant increase in costs while enabling eligible homeowners in Canterbury to repair their earthquake-damaged properties in a timely manner. Associate Finance Minister David Seymour requested these changes from the Natural Hazards Commission (NHC) to simplify the delivery of the support package.
Established in 2019 as a time-limited offer for owners of on-sold over-cap properties, the On-sold programme has already supported over 800 homeowners in completing repairs and returning to their homes. However, with estimated costs rising from $250 million to $717.9 million by June 2024, the Government seeks to put an end to the programme's indefinite continuation.
Key modifications include limiting ex-gratia payments to 1.5 times a property's rateable capital value and introducing stricter deadlines for applicants. Pre-construction project-management costs will be capped at 4% of the repair grant. Additionally, new limits will be applied to settlements where homeowners have chosen to purchase a new home.
The changes are set to take effect immediately, with the NHC contacting all 250 remaining programme applicants over the next two days to inform them about the impact on their specific situation. By implementing these modifications, Minister Seymour hopes to deliver a positive outcome for both homeowners and taxpayers alike, ensuring that earthquake damage is repaired as soon as possible without incurring additional costs for taxpayers.