To support owners corporations with the costs of rectifying combustible cladding on private apartment buildings in Australia’s capital, the ACT Government has announced the concessional loan details of the Private Buildings Cladding Scheme.
Lannock Strata Finance will administer the Private Buildings Cladding Scheme Concessional loan on the ACT Government’s behalf, providing a stable and reliable financial loan so owners corporations can begin remediating their cladding.
Eligible owners corporations who have participated in the Scheme’s initial testing and assessment phase can now apply for a concessional loan with:
• a fixed interest rate;
• a loan repayment period of 10 years, which starts after works are completed;
• no application or other loan fees;
• individual loans generally up to $15 million per owners’ corporation; and
• no penalties for repaying the loan early.
Lannock CEO Paul Morton said he looked forward to working with the ACT Government and affected owners, and also pointed out how these loans will allow owners to start work on rectifying combustible cladding as quickly as possible.
“Many owners in the current COVID-19 affected economic climate would face difficulties in obtaining personal finance or increases to their mortgages in order to fund a special cladding levy,” he said.
“Lannock looks forward to working with both government and owners affected by combustible cladding to assist them to resolve this critical problem affecting buildings in the ACT.”
Eligible owners corporations participating in the ACT Government’s Private Buildings Cladding Scheme can apply for a low interest rate concessional loan from 29 August 2022 for the removal and replacement of combustible cladding.
“The ACT Government takes the safety of Canberra residents seriously and we are committed to reducing the risk of potentially combustible cladding on residential apartment buildings in the ACT,” Minister for Sustainable Building and Construction Rebecca Vassarotti said in an announcement earlier this month.
“We recognise the challenges faced by apartment building owners to address combustible cladding without assistance, which is why we have provided financial support firstly with our testing and assessment rebate scheme and now with a concessional loan scheme to assist with rectification work.”
Applications will be open for 18 months, allowing eligible owners corporations until 29 February 2024.
Costs covered under the concessional loan will include the cladding remediation design and works, any ‘make good’ works necessary due to cladding remediation, and regulatory fees, such as building approvals.
