Owners corporations participating in the ACT Government’s Private Buildings Cladding Scheme will now be able to apply for a low-interest rate concessional loan starting 29 August 2022 for the removable and replacement of combustible cladding.
Lannock Strata Finance will administer the concessional loan on behalf of the ACT Government. Here are the details of the concessional loan:
- a fixed interest rate at the cost of Government borrowing, which is currently 4.2%;
- a loan repayment period of 10 years, which starts after works are completed;
- no application or other loan fees;
- individual loans generally up to $15m per owners’ corporation;
- no penalties for repaying the loan early.
The application will be open for 18 months to 29 February 2024.
The loan can be used to cover the costs of cladding remediation design and works, any “make good” works necessary, and regulatory fees such as for building approvals.
The Private Buildings Cladding Grants Scheme was announced on 21 July 2021 to help eligible residential apartments and mixed-use buildings in the ACT to comply with safety guidelines that address the risks of combustible cladding.
The scheme supports owners corporations to obtain professional advice to undertake testing and assessment of the cladding on their buildings.
Under the scheme, the ACT Government will provide financial assistance towards the cost of obtaining the professional advice, offering up to 50% of the cost to a maximum rebate of $20,000.
With the announcement of the concessional loan, owners corporations will be able to apply for a low-rate concessional loan to carry out the replacement of combustible cladding.
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Photo by @sonance on Unsplash.
