This article is from the Australian Property Journal archive
SEVERAL hundred extra families left in the lurch by Porter Davis and other collapsed builders that did not take out mandatory domestic building insurance (DBI) on their behalf can now apply for an expanded Victorian government support scheme.
The expanded support scheme follows an initial $15 million bailout package set up by the government to support clients of Porter Davis who paid a 5% deposit to the company, which collapsed earlier this year without taking out mandatory domestic building insurance and leaving 1,500 homes in Victoria incomplete.
More than 200 families from the original Porter Davis Homes group of 5% deposit-makers have already been approved for payments.
The expanded scheme now covers Porter Davis customers who paid 3% amounts under pre-deposit “tender agreements”, and also covers eligible customers of the collapsed Hallbury Homes and Snowdon Developments who made a payment of up to 5% of the value of their building contract, including amounts for plans and specifications, where their builder did not take out DBI.
The scheme covers clients of builders that have gone into liquidation in the 2022/23 financial year where the customers have made deposits but been left without DBI through no fault of their own. Payments of up to $50,000 are available.
“We’ve moved swiftly to open applications for the expanded scheme because we understand how important this support will be for families,” Minister for government services Danny Pearson.
“People make big sacrifices to get a deposit and to then lose that through the actions – or inactions – of their builder is heart-breaking. We’ll work to verify claims as quickly as we can.”
Snowdon Developments was ordered into liquidation by the Victorian Supreme Court a year ago impacting 550 homes, Hallbury Homes went into voluntary administration in January, affecting 62 owners with homes at various stages of completion.
The government said any customer affected by the liquidation of a building company other than Porter Davis, Hallbury Homes and Snowdon Developments during the last financial year, and the criteria, can provide their details so they can be followed up.
The government has announced plans to reform the Domestic Building Contracts Act 1995, strengthen domestic building insurance requirements and introduce a new offence with tougher penalties for builders who request deposits without taking out the required insurance.
