This article is from the Australian Property Journal archive
SOUTH Australians can now access state government support to fast-track replacement of combustible panel cladding on private buildings, including residential apartment buildings.
The Combustible Aluminium Composite Panel Cladding Limited Loan Scheme was announced late last year by Planning Minister Nick Champion. The scheme allows eligible owner corporations to secure a concessional loan with a fixed interest rate and term of up to 10 years, with no application fee.
Loans of up to $15 million will be offered at the rate of government borrowing and are available to community and strata corporations seeking to start required remediation works or have an existing commercial loan in place and wish to refinance.
“These concessional loans will alleviate the challenges faced by residents who previously had to decide whether they could afford significant up-front costs,” Champion said.
Financial assistance is offered to replace cladding on buildings with an extreme or high South Australian Life Safety Assessment risk rating.
Remediation works must be completed within five years of the commencement of the scheme.
Loan funds will be drawn down in full within 24 months, and loan repayment begins when works are completed. Loans can only be used for works needed to meet national standards.
At-risk buildings were identified through a state-wide audit conducted following the devastating 2017 Grenfell Tower fire in London and the Lacrosse building blaze in Melbourne’s Docklands in 2014. The Adelaide Advertiser has reported that residents in two buildings, including the Air Apartments tower, are facing remediation bills of up to $300,000 each. It has also reported there are now six buildings with the “high” or “extreme” risk rating.
The new loan scheme will be backed by changes to community title group rules making it easier to get combustible cladding removed from apartment buildings. An amendment is now in effect to allow remedial works to take place with the support of 75% of lot owners. Previously, community title groups needed to secure unanimous agreement to remove cladding where the cost exceeded $5,000 per apartment.
“Securing unanimous approval in a community title group – where you can have dozens of individual owners – can be a challenging task at the best of times,” said Minister for Consumer and Business Affairs, Andrea Michaels.
“But especially when works are mandatory, and designed to address potential safety concerns, it’s essential that works can be approved and commence in a timely manner.”
Meanwhile recently a team from RMIT University and materials technology company Livefield announced they have developed the new composite fire-safe cladding made from recycled glass, could provide a sustainable circular-economy solution for the built environment.
