Repairing your home with the Financial Assistance Package

Last updated: 21 March 2016

The Financial Assistance Package (FAP) scheme offers eligible homeowners a financial contribution towards repairing their leaky home. MBIE launched the scheme to make sure your home gets repaired more quickly and effectively.

If your claim for a Financial Assistance Package is successful, you will share the cost of repair with the government and it also may include your local council if they are a contributing party.

The government and council will each pay 25 percent of the agreed repair cost. You will need to pay the remaining 50 percent.

However, if your council didn’t sign off the building work, or is not participating in the FAP, you will need to pay 75 percent of the repairs.

You can claim for the FAP as well as making a claim under the Weathertight Homes Resolution Service Act. This means you still have the option to pursue liable parties such as builders, developers and manufacturers of defective products through the Weathertight Homes Tribunal or in the courts.

You will be required to sign an agreement not to take legal action against contributing councils and the government.

Participating in the FAP scheme

As part of the FAP process, you will need to:

  • Have a full assessor’s report on the home. This may mean further investigation if you’ve only had an ‘eligibility assessment’, which is a brief investigation only to establish if your house is built in time, and has at least one leak.
  • Agree to a repair plan with MBIE.
  • Provide proof you are able to pay your share of the repair costs outlined in the agreed repair plan. That may involve getting your bank’s approval to lend you the money for your share.
  • Sign a homeowner agreement.
  • Obtain an assessment of any units within the complex which are part of the building to be repaired but which are not part of the claim.

Council participation

Your council will only contribute to the cost of your repairs if it has a duty of care to you and if you meet all other relevant criteria.

Your council will not contribute to your repair costs are if it:

  • did not inspect your property or issue a code compliance certificate (for the defective work)
  • issued a notice to fix for weathertight issues and a code compliance certificate was never issued
  • relied on a certificate from a private certifier when it issued the final or interim code compliance certificate
  • issued a code compliance certificate for your house because it was required to do so by a determination from MBIE.

Types of claims through the FAP

You need to choose one of three options when making a claim, depending on the home you have and the ownership structure.

We are happy to answer any questions you may have about making a claim, or your eligibility.

1. Stand-alone house

If your property is on a freehold title (not on a cross-lease title, unit title or company-share licence) you should read the FAP Information Pack for stand-alone homes.

To make a claim, download and complete the stand-alone house application form.

2. Multi-unit complex

If your property is not on a freehold title and there are common areas affected by leaking, or if your unit is the only affected area, you should read the FAP Information Pack for multi-unit complex homes.

To make a claim, download and complete the multi-unit complex house application form.

3. Stand-alone complex house

If your property is not on a freehold title, yet there are no common areas affected by leaking, you can make a claim by downloading and completing the stand-alone complex application form.

The idea of the FAP is to help make sure your home is fixed faster. We are here to help make that happen. If you are unsure of the application form you need, contact us.

Overview of the FAP process

The FAP scheme expires on 23 July 2016, and new claims received after this date cannot access the scheme. (Note: As 23 July is a Saturday, claims can be received up until midnight on Monday 25 July 2016.)

Claimants with an existing eligible claim under the Weathertight Homes Resolution Services Act, who are taking reasonable steps to progress their claim, can still access FAP contributions after 23 July. Get in touch with your claims advisor to check claim progress and the likely timing of FAP contributions.

You can find details about each claim process in the section with information packs below.

Though each claim process is different, you can expect the following steps:

  1. An MBIE claims advisor will be assigned to your claim.
  2. Your claim will be noted on your home’s Land Information Memorandum (LIM) report, regardless of the outcome.
  3. Your claims advisor will review your claim. They can accept or reject it, or ask for more information.
  4. If your claim is accepted, your claims advisor will discuss home assessment options with you, as well as details of the repair process.
  5. Your home will be assessed, and you will be sent a copy of the report. The assessor will make a recommendation to MBIE about whether you have an eligible claim..
  6. You will need to prove you can afford your share of the repair cost.
  7. You must sign a Homeowner Agreement with us. The agreement contains the conditions you must satisfy in order to qualify for the contribution payments.
  8. You need to engage a designer and discuss repair work plans. The council and MBIE will then review the repair plans.
  9. The designer will finalise the plans, and you will need to lodge a building consent application with your council.
  10. You need to engage a builder and obtain quotes for repair work. MBIE will review these quotes and other costs associated with your repairs.
  11. If you accept the financial contributions offered you confirm that by issuing the Notice to Proceed.
  12. Repairs commence, along with regular inspections of the work.
  13. At agreed ‘milestones’ during construction, you will receive interim payments.
  14. Once your repair works are complete, you will need a final inspection of the work. If everything is okay, a code of compliance certificate will be issued.
  15. You can then submit your final costs for review and receive the last payment.

You can find more detail on specific processes in the Information Packs.

Applying for the FAP

The FAP scheme expires on 23 July 2016, and new claims received after this date cannot access the scheme. (Note: As 23 July is a Saturday, claims can be received up until midnight on Monday 25 July 2016.)

Claimants with an existing eligible claim under the Weathertight Homes Resolution Services Act, who are taking reasonable steps to progress their claim, can still access FAP contributions after 23 July. Get in touch with your claims advisor to check claim progress and the likely timing of FAP contributions.

The process of repairing your home will vary slightly depending on what claim you make, however, you can expect it to look similar to the following steps:

Lodging and accepting a claim

Step 1 - Lodge a claim under the Weathertight Homes Resolution Services Act by filling in an application form. You can let us know if you are interested in the Financial Assistance Package (FAP) and we can chat to you about what you may need to do.

Step 2 – We will accept or decline your application, or seek more information. A claims advisor will be allocated to your claim.

Step 3 – Your local council will be notified of your claim, regardless of whether it was accepted or declined. The Land Information Memorandum (LIM) for your property will be updated.

Step 4– Your council will need to notify us if you qualify for their FAP contributions towards repair costs.

Step 5 – You should discuss your situation with your legal and financial advisors, including your bank. There are costs and risks with any major repair project, and you must be able to afford your share of the cost of the repair and associated costs.

Step 6 – An assessment will be done on your property. This results in a written report that confirms your claim is eligible under the Weathertight Homes Resolution Services Act. It will indicate whether your property is likely to need targeted repairs or a full re-clad. You can choose to have a free eligibility assessment or a full assessment of your home. We can help you to decide which assessment option to choose, and the costs involved.

Step 7 - Where the claim is eligible under the Weathertight Homes Resolution Services Act, a claims advisor will discuss your options with you. At this stage, if you choose not to access or do not qualify for FAP contributions, you may still be eligible for dispute resolution (mediation or adjudication).

Confirming affordability and signing a homeowner agreement

Step 8 - If you haven't already had an extensive assessment of your property, you will now need one to establish the exact extent of the damage and the scope and estimated cost of repair work. The cost of a Full Assessor’s Report ranges from $511.11 to $1533.33.

Step 9 – With exact scope and cost of damage in mind, you can approach your bank about the finance you will need to complete the repair. If you are unable to fund your portion of the repair then you can either continue with your claim through the Weathertight Homes Tribunal or withdraw it to pursue other options.

Step 10 – You will need to confirm you can afford your share of the estimated repair costs. This may include providing a letter of pre-approval from your bank, or other evidence of cash assets.

Step 11 - You will be offered a Homeowner Agreement with us and the council (if it is participating in the FAP). This agreement contains the conditions you must satisfy to qualify for the contribution payments. Your lawyer should review this Agreement with you before you sign it.

Getting the plans developed and approved

Step 12 - You will need to hire a qualified designer to draft a Repair Plan. This will show how the leaks will be fixed.  All the leaks identified in your Assessor’s Report (see Step 8) must be fixed, and all damage removed. MBIE, and in many cases the council, will review the plan to confirm the work outlined will repair your home.  Also, the approved repair plan will identify any conditions of approval and works that may not qualify for contributions.

Step 13 –You will need to lodge a building consent application. Your designer will provide detailed drawings and specifications in order for you to do so (you can also instruct someone like your designer to lodge the consent application on your behalf). MBIE will check that the design outlined in the building consent matches the approved repair plan as closely as possible. If it doesn’t, the repair plan may need to be re-assessed.

Establishing qualifying costs and getting them approved

Step 14 - Along with getting the building consent approved, you will select your preferred builder. This may be done in a variety of ways, including running a tender from a number of builders, or simply choosing the builder you want to use.  In most cases, you will (and should) receive a quote from each builder showing their cost for doing the building work.

Step 15 – Your claims advisor will send you the Payment Plan Application Form for you or someone on your behalf to complete. Once completed, your application needs to show the costs proposed by your builder and other costs you believe qualify for FAP contributions. You also need to list the expected timing of milestone payments throughout the course of repairs. The Payment Plan is part of the Homeowner Agreement. MBIE will review your Payment Plan submission and advise which costs qualify for contributions.

Step 16 - You will need to demonstrate you can afford your share of the repairs to your home by providing MBIE with approval of finance from your bank, or evidence of other cash assets. Having an approved quote and Payment Plan will enable you to finalise your funding arrangements as you will know your total repair costs, the expected contribution amounts and when they will be paid.

Starting repairs and managing the process

Step 17 - You must provide MBIE with a Notice to Proceed. A Notice to Proceed is a signed statement from you confirming that you want repair work to begin. This statement commits you to complete the repair of your property and means your Homeowner Agreement is now unconditional.

Step 18 - You will request and receive your first contribution towards the agreed costs you have incurred to date. By accepting the first payment from the contributing parties you will give up any rights to take legal action against those parties.

Step 19 – The council will follow Building Act processes for inspecting your work and issuing a code compliance certificate. Contributions will be paid following inspections at the milestone points, which are defined in your Payment Plan (see Step 15). You must meet your share of costs from your own resources.

Step 20 – Once the code compliance certificate is issued, you can request the final contribution payment. You must provide invoices to support the calculation of the final payment.

Step 21 - At the end of the FAP process you may wish to pursue other parties. You can do this through the Weathertight Homes Tribunal process. Call your claims advisor for more information.

Helpful information

Factsheets

Proof of affordability form[PDF 396 KB]

View and download the Proof of affordability form for the Financial Assistance Package.

Review of affordability form[PDF 390 KB]

View and download the Review of affordability form for the Financial Assistance Package.

These factsheets will help you understand your rights and obligations in the FAP process:

  • Additional contributing parties and in-kind arrangement
  • Approved repairs and costs
  • Home assessment process
  • Associated costs
  • Betterment
  • Demolition and rebuild
  • Design and contract management
  • Final payment claim
  • Milestone payments
  • New claimants
  • Payment Plan application
  • Project management
  • Repair Plan example
  • Variations and changes to requests

View and download the Financial Assistance Package factsheets.

This information is published by the Ministry of Business, Innovation and Employment’s Chief Executive. It is a general guide only and, if used, does not relieve any person of the obligation to consider any matter to which the information relates according to the circumstances of the particular case. Expert advice may be required in specific circumstances. Where this information relates to assisting people: