Some relief at last for apartment owners being forced to pay for the removal of dangerously flammable cladding on their buildings after the government announced a $1 billion program aimed at helping to resolve the crisis.
The program includes $139 million to establish and offer technical support to the owners of the at-risk buildings, in order to provide much-needed advice on how to fix the issue.
The government will also subsidise the interest on loans — up to $930 million — to owners of buildings identified as ‘high risk’, in order to fast-track the removal of the dangerous cladding.
Under the program, the government aims for the removal to begin in June 2021.
The combustible material was identified in hundreds of buildings during a government audit in the wake of the London Grenfell fire in which 72 people lost their lives.
‘Owners have asked for financial and technical support to help them manage the process.’Kevin Anderson, Better Regulation and Innovation Minister
In order to ensure that the removal process is managed as professionally, efficiently and safely as possible, building owners will need to hire an expert to assess and remove the cladding.
With our qualified team of fire technicians, and years of experience bringing buildings up to code, Brisull Industries will assess your building and remove the cladding quickly and professionally, giving peace of mind to residents and owners alike that their buildings — and their lives — are at last safe.
With the removal of the cladding from these high-risk buildings predicted to cost an average of $4 million each, the interest-free loans aim to spare apartment owners from having to resort to commercial loans, which could come with interest rates as high as 10 per cent.
Easing the financial burden upon struggling apartment owners
The NSW government has been under pressure to follow Victoria’s lead in funding rectification work in order to ease growing financial pressure on building owners already struggling under a coronavirus-induced recession.
In Victoria, the state government committed $600 million to fix the cladding on private apartments and had planned to fund repairs on up to 100 buildings a year. But Kevin Anderson says that Victoria was a ‘perfect example of what not to do’, stating that ‘18 months after their big announcement, the work is just not being done’.
‘We will be doing this once, and we will be doing it right.’Kevin Anderson, Better Regulation and Innovation Minister
Minister Kevin Anderson says that the loan scheme is the ‘quickest and most effective’ way to remove the dangerous cladding, as it ‘balances the needs of impacted residents and demands on the budget’ in an economy that’s taken a huge hit due to the COVID-19 pandemic.
Building owners and strata corporations will be able to make applications for the interest-free loans in March 2021, once the government has finalised a financial loan provider.
Finding a safe alternative
The only question that continues to puzzle apartment owners is what to replace the cladding with. While a Cladding Product Safety Panel was set up last August, it’s not expected to advise on which cladding material should be used as a replacement until early next year.
Consult an expert in fire safety and corrective maintenance
The cladding crisis has proven a stressful and frustrating time for many building owners forced to fork out hundreds of thousands of dollars to rectify the issue.
Brisull Industries aims to make the rectification process as quick, easy and stress-free as possible, to at last bring this terrible saga to a close for affected residents and building owners.
Book a quote today and we’ll be out within 48 hours to assess your building and give you a quote for the removal of your cladding.