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Victoria will introduce a “world-first” financial mechanism to help residential building owners pay for urgent rectification works caused by the installation of non-conforming and non-compliant flammable cladding on high-rise apartment buildings in the state. Planning minister Richard Wynne on Thursday said changes to the Local Government Act would introduce “Cladding Rectification Agreements”, or CRAs, which would be similar to the Environmental Upgrade Agreement (EUA) model, which allows owners to upgrade buildings and pay off the costs via council rates. Under the model, owners or owners corporations would enter into an arrangement with lenders and a local council, accessing a long-term low-interest loan to pay for the building works, which would then be paid off by an increase in council rates over a minimum period of 10 years. Costs would be transferred to new owners if the property were sold.
The Fifth Estate