Cyclone minister provides update on buyout plan for flood-prone properties
Cyclone minister provides update on buyout plan for flood-prone properties | Insurance Business New Zealand
Catastrophe & Flood
Cyclone minister provides update on buyout plan for flood-prone properties
Costs will be shared between the government and respective councils
Catastrophe & Flood
By
Kenneth Araullo
Cyclone recovery minister Grant Robertson shared an update on the government’s buyout plans for homes designated as Category 3 properties, in addition to welcoming the Auckland Council’s announcement of engagement with affected property owners following the two extreme weather events earlier this year.
“It is imperative all councils in affected areas, including Auckland, provide certainty to affected residents on what category their properties will likely fall under as soon as possible, following the process undertaken by the cyclone taskforce working with councils and insurers to pull together data on affected areas,” Robertson said.
In a news release, Robertson said that people in homes designated as Category 3 – the most affected – will be offered a voluntary buyout, with the costs shared between the government and respective councils.
“Decisions on the details of how the voluntary buyout process will work will be made in the coming weeks. This will include the valuation of Category 3 properties, the split of costs between councils and central government, and how offers made for insured and uninsured properties will differ,” Robertson said.
As for those in Category 2…
Robertson also said that cost-sharing will help councils get the right solution in the right place, as well as avoid significant financial hardship for property owners. He also said that the government is supporting a locally led response from councils on managed retreat and post-storm plans for those affected.
“I acknowledge that this is a significant exercise for Auckland Council, where the majority of Category 2 and 3 affected homes are located. While Auckland Council has chosen to focus on high-risk, potentially Category 3 properties initially, it is critical that Auckland Council also looks to complete assessments of Category 2 affected properties to provide further certainty to affected property owners as quickly as possible,” Robertson said.
As for properties designated under Category 2, Robertson said that the government will work with councils to help those affected build flood protection and other resilience measures. The $100 million in funding secured from the 2023 budget will support these causes across all affected regions.
“We know that with climate change there will be more severe weather events like this in the future. A cost-sharing arrangement will be the basis for all future events of this type. The government has to strike a balance, a careful balance between supporting affected communities and not making all taxpayers bear the cost,” Robertson said.
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