Under Project Remediate, a 10-year interest-free loan is made to owners corporations to do the cladding remediation work. The NSW Government will pay for the interest on the loans on behalf of unit owners to fund and fast-track the removal of high-risk cladding under the program. Loan repayments will start AFTER the building work has been completed.
The loan repayments by the owners corporation will be funded by special levies that unit owners must pay in addition to the usual levies. Each unit owner will bear their unit entitlement share of the levy. Repayments will be made quarterly to align with strata levies which are typically paid quarterly.
Owners corporations may still pursue third parties for recovery of these costs. Any funds received for cladding will need to be directed to reducing the loan. It is also recognised that the cost of necessary remediation work and increased strata levies may cause financial hardship for some unit owners. Provisions will be built into the loan to support and protect owners in this position on a case-by-case basis.
This government sponsorship is a push to ensure the safety of our citizens into the future and we at Archi-QS will be following this initiative closely.
Note: All information has been taken from the Fair Trading resource “Project Remediate: Understanding the Program”.