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Owners of earthquake-prone buildings have been given a four-year extension, and a review is currently underway

Owners of earthquake-prone buildings have been given a four-year extension, and a review is currently underway

 


Prime Minister Christopher Luxon (left) and Building and Construction Minister Chris Pink. Photography: Mark Mitchell

The government is introducing a review of the rules for earthquake-prone buildings that have caused sleepless nights for apartment owners.

Building repair deadlines will also be extended by four years, providing some breathing room while the review takes place.

There are 5,360 earthquake-prone buildings across New Zealand, from churches to shops, office parks and apartment buildings.

Following the deadly Christchurch earthquakes, a new system was introduced requiring councils to identify such problem properties and set a deadline for fixing them.

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Nearly 500 deadlines are scheduled to expire over the next four years.

Those living in multi-ownership apartment buildings have long argued that the legislation is being used as a “blunt tool”. Hundreds have faced sleepless nights, lost their homes and been on the brink of financial disaster, and say they fund public safety outcomes even though the public doesn't use their buildings.

Building and Construction Minister Chris Pink announced that work would begin immediately on the review previously scheduled for 2027.

Prime Minister Christopher Luxon (left) and Building and Construction Minister Chris Pink. Photography: Mark Mitchell

The comprehensive review will consider appropriate risk settings to protect safety while ensuring that the rules are workable to support businesses, increase economic activity and create jobs. It will also look at how offshore jurisdictions manage earthquake risks.

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“Councils and building owners have told me that many buildings will not meet their deadlines because of the high costs involved, which are exacerbated by onerous heritage rules and ownership structures,” Pink said.

“Without change, a large number of buildings could remain empty, which would have a devastating impact on the economy in cities like Wellington and regional towns across New Zealand.”

While this review is underway, all current processing deadlines will be extended by four years, Pink said.

“However, I encourage building owners to use this time to continue making improvements to their buildings, particularly because of the positive impacts remediation has on insurance and their ability to obtain tenants.

“As part of this work, the Government welcomes the contributions of councils in major cities and regional towns, and the views of the insurance and banking sectors.”

The review comes too late for people like Michael Cummins who was facing a $400,000 bill to boost his stake in the Kent Tse apartment block he lived in in Wellington, effectively “wiping out” his retirement plan.

Wellington apartment owner Michael Cummins spoke to New Zealand Herald reporter Georgina Campbell in 2020 about the rising costs of beefing up his building. Photography: Mark Mitchell

Since the Herald first reported his case in 2020, the apartment owners in the building have decided to sell, with the exception of one owner, Cummins said last year.

“It was a huge relief when we were finally able to walk away from that.”

Cummins said they loved their apartment, but the stress and uncertainty meant consolidating the building wasn't an option for them.

Pink expected this announcement to come as a great relief to building owners. It also recognized owners who have already endured the process of strengthening their buildings.

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“We cannot turn back the clock, and at least the people who have been able to do this are now in a much better position than those who have not been able to do so yet.”

Wellington Inner City Residents' Association spokeswoman Geraldine Murphy has been fighting for a review of the rules for years, arguing they are unfair.

“Keeping people safe from harm when disasters strike is important, but if the way we do that is ruining the lives of more people than would be saved, and forcing apartment owners out of their homes, then we need to think again.”

Wellington Inner City Residents' Association spokeswoman Geraldine Murphy has called for a review of the rules for years, arguing they are unfair. Photography: Mark Mitchell

Auckland Mayor Wayne Brown also called for a review, saying seismic enhancement rules made no sense in a region that has shown no signs of seismic activity in 100,000 years.

Wellington Mayor Tory Wahanno wrote to current Premier Christopher Luxon ahead of the 2023 election requesting a review. Whānau also wanted co-funding to enhance council buildings, which provide vital infrastructure for the country's national arts programme.

The Cabinet will approve the terms of reference for the review next month. The deadline extension to boost deadlines will apply from April 2 but will not include buildings that have already missed the deadline.

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Georgina Campbell is a Wellington-based reporter with a special interest in local government, transport and earthquake issues. She joined the Herald in 2019 after working as a broadcast journalist.

Sources

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2/ https://www.nzherald.co.nz/nz/earthquake-prone-building-owners-given-four-year-extension-review-underway/N4ISYUFJ3FHYNMWAET45HORGB4/

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