Inadequate Solution For New Zealand Leaky Home Owners

Inadequate Solution For New Zealand Leaky Home Owners

Unless you have been personally affected by the leaky building situation found across New Zealand, you probably do not know what all the hype is about.

During the early to mid 1990s, a substantial number of homes were built using construction standards that were unable to withstand the weather conditions found in New Zealand. This resulted in a large numbers of leaky homes that are not weathertight. Due to the materials used and design of the homes, they have inherent defects that cause leaks during the rainy season. While a solution has been proposed to assist the affected owners of leaky homes, it is far from adequate.

Some New Zealand law firms who specialise in leaky building litigation have considerable reservations as to the proposed Government solution and are concerned about leaky home owners' rights in settling the suit.

In 1998, a new standard for Timber Treatment was enacted. It allowed the use of untreated kiln-dried timber in wall framing. As it is untreated timber, it rots when it is exposed to water and moisture, causing leaky buildings. The condition is a health hazard as it facilitates mould growth in the leaky homes. It also causes structural damage to the home as well. In most cases, the leaky home owners are unable to afford to fix the problem and are unable to sell their home in the current condition, unless they take a substantial loss due to the leaky home condition.

The government response was to form a Weathertightness Overview Group to investigate the weathertightness of buildings in NZ and the causes of the leaky buildings. The group completed site surveys and consulted with many experts in the construction industry. The findings were outlined in a comprehensive publication named the "Hunn Report". This report identified the causes of leaky buildings and made a series of recommendations. The overall finding is that the previous states and regulations injured the leaky home owners and they are entitled to some sort of retribution.

In short, it has been concluded that if you own a leaky building or home this is not weathertight, you are eligible for special financial consideration and reimbursement for the costs associated with repairing these defects. In May 2010, the Government published a proposed financial assistance package to facilitate the repair of the affected leaky homes.

On the surface, the proposal has the appearance of the Government stepping in to help affected homeowners. But one needs to read further to find a technicality releasing a lot of responsibility.

According to Building and Construction Minister Maurice Williamson, the government is willing to offer 25% of the repair costs IF the local councils agree to match that amount. This contingency offers the homeowner a worthless claim as many councils have not yet agreed to comply and doing so is completely voluntary.

Furthermore, the leaky home owner is being expected to foot the final 50% of the costs. The Government is generously offering a guaranteed loan to correct the defects, subject to certain provisions. It is ludicrous to ask leaky home owners to pay for half of the repairs when they relied upon governmental agencies' expertise to ensure that their homes were weathertight. The homeowner is able to accept the financial assistance while pursuing other liable parties such as the builders, but this prohibits legal action against the Crown.

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