NSW Government interest free loans to Owners Corporations to fix cladding crisis
The NSW Government has announced in the State budget the establishment of a $930,000,000 fund to allow Owners Corporations to take interest free loans to remove and replace unsafe cladding in approximately 225 strata buildings identified as “high risk”. The Government has estimated the average cost of removing and replacing cladding from these buildings to be $4,000,000 for each building.
In addition, the Government will provide funding for technical support, to coordinate the remediation process for affected buildings.
Eligible building owners and Owners Corporations will be contacted by the Government and invited to participate in the project, to be called “Project Remediate”. Given the serious issues around cladding discussed in our recent article, we recommend all our clients who own strata properties contact their Owners Corporation to determine whether their building is eligible for participation in “Project Remediate”.
Craig Higginbotham and Tiara Chen
19 November 2020