NSW Project Remediate Interest Free Loan

The 10-year, interest free unsecured loan pays for the remediation work and other services needed for your remediation under Project Remediate.

The owners corporation is the borrower. We do not lend to the individual owners.

The loan is unsecured. Unlike a secured loan, there is no security held against the property. Specifically, there are no mortgages, charges, liens or caveats. Nothing is registered on the title of the common property or any individual lot.

Your credit assessment will be processed based on the forecast total cost of cladding remediation work including all investigation, design and construction costs.

There are no set up or management fees associated with your interest-free loan and no hidden costs. You’ll find all the loan terms and conditions clearly outlined in the loan contract.

Yes, you can repay the loan earlier. All terms and conditions are provided in your loan contract.

The draft loan contract and credit assessment instructions will be provided to the owners corporation shortly after the loan information session.
Once the credit assessment process is complete and we have been provided your final design cost from Hansen Yuncken the loan contract will be sent to the owners corporation to review and discuss.
Your loan relationship manager will be on hand to answer any questions and to attend meetings.

We will require copies of various records of the owners corporation, such as a bank account statement, certificate of insurance and financial reports. Usually, your strata manager will handle this for you.
The required Credit Assessment documentation is as follows:

• Building Insurance Certificate of Currency
• A copy of the Certificate of Title/Registration/Plan of subdivision/Strata Plan
• Financial statements for the past two years to date
• A current levies aged balance report (30, 60, 90 days)
• Strata Roll (in .xls or .csv format if possible)
• A copy of a bank account statement (showing BSB, account name & account number)
• Minutes of Meeting

Yes, the owners corporation is required to table the Project Remediate loan contract at a general meeting and pass the relevant motions to resolve to borrow. A copy of the required motions will be provided by your loan relationship manager in preparation for the meeting.

The owners corporation is required to table a motion to authorise specific individuals to be authorised signatories of the Project Remediate loan contract. This motion must be passed at general meeting. A copy of the required motion will be provided by your loan relationship manager in preparation for the meeting.

All loan documentation and queries can be managed by your loan relationship manager via email: remediate@lannock.com.au

Lannock will provide a response within two business days of receiving all relevant documents.

Your loan relationship manager will provide notification on the status of your loan approval and will be available to answer any additional questions you may have.

Your owners corporation will make monthly repayments to repay the loan via direct debit on the owners corporation’s bank account.
The repayment period will commence 90 days after the issue of the certificate of practical completion which is issued by the superintendent. The first repayment is due on the 15th day of the month following the month containing the repayment commencement date.
Subsequent repayments are due on the 15th day of each following month until the aggregate amount of all of the Advances has been paid in full.
The owners corporation will levy owners for repayments – although the owners corporation can choose the levy cycle, most owners corporations issue quarterly levy invoices.

It is up to each owners corporation to determine its policy with respect to levies in arrears by unit owners. Talk to your strata manager or adviser about what the situation currently is for your building and what it should be.

Yes, residential owner occupiers who have difficulty in making their levy payments for their portion of the loan can apply for Project Remediate Hardship Assistance. Read more about this in the ‘Understanding your Hardship program’ section.
Lannock Strata Finance will review applications for hardship. If it is approved, a certificate will be issued to the owner within 14 business days of receiving an application with all required documentation. Monthly loan repayments from the owners corporation will be adjusted accordingly. Note that Project Remediate Hardship Assistance does not apply to the levies that are not associated with the Project Remediate loan.
The owners corporation will be provided with the Project Remediate Hardship Policy and the Hardship Application Form after your loan presentation session.

Yes. The loan to the owners corporation is serviced by levies from owners. The obligation to pay levies “runs with the land” and so it is the owner at the time the levy is due who is responsible to pay that levy.
However, if the owner has qualified for hardship assistance when the unit is sold, payment of the deferred Project Remediate levies will be due upon settlement of the sale of the unit.

GST doesn’t apply to the loan repayments paid by the owners corporation.

The Hardship Program is restricted to residential owner occupiers who owned their unit at the time the Project Remediate loan is entered into. Proof of this will be required. An eligible owner may apply by submitting a completed and submitting the Owner Hardship application form with supporting documentation

An eligible owner can apply for the Hardship program bycompleting and submitting the Hardship eligibility check and application form.

Only Lannock Strata Finance, as the Hardship Assessor, will have your financial details on record. The owners corporation won’t have access to this. However, it’s necessary that the owners corporation know that you’ve been granted hardship relief and be provided with a copy of the Hardship Certificate.

The Project Remediate portion of your levies will be deferred for the period of the hardship relief specified in the Hardship Certificate.
You will also be an unfinancial owner which means you will not be able to vote at strata meetings. Speak to your Strata Manager about the consequence of being an unfinancial owner.

All deferred levy payments associated with the repayment of the Project Remediate loan will be due for payment to the owners corporation at the end of the hardship relief period. Speak to your Strata Manager about this process.
In addition, you will now be required to recommence payment for levies issued by the owners corporation which are associated with the repayment of the Project Remediate loan as per your owners corporation levy issue periods and process. Speak to your Strata Manager about this process.
The owners corporation Project Remediate loan repayments will be readjusted accordingly.

Yes. Hardship relief is available for all eligible owner occupiers to utilise throughout the lifetime of the Project Remediate loan. Therefore, you can reapply for periods of deferred payments when required.

When an eligible owner is approved for hardship relief, they will be supplied with the Hardship Certificate. A copy will be provided to the owners corporation. The Project Remediate monthly loan repayment amount will be automatically adjusted for the approved deferral period. This means the owners corporation does not need to cover any shortfall in levy contributions resulting from owners who have hardship relief.

It is up to each owners corporation to determine its policy with respect to levies in arrears that do not relate to Project Remediate loan repayments. Talk to your strata manager or adviser about what the situation in your property is currently and what it should be.

No. All outstanding owner deferred levy payments must be paid by the current owner to the owners corporation upon settlement. Ongoing levies including contributions to Project Remediate loan repayments are payable by the owner at the time the levies are due.

Of course. We are only too happy to make ourselves available to answer any of your questions.

Your Loan Relationship Manager is standing by to provide advice and support throughout the lifecycle of the loan. Please contact us via email: remediate@lannock.com.au