5. Funding and loans available for owners corporations
The latest owners corporation property cladding legislation had enabled CSV to provide funding for the rectification of external wall combustible cladding for some high-risk multi-unit residential building.
Eligible buildings will be prioritised based on audit results, risk to the community and readiness for rectification works. Eligibility is approved when a building has been:
Owners ineligible for direct funding for cladding rectification in accordance with owners corporation property clagging legislation may still receive assistance for managing out-of-pocket costs via the Victorian government’s loan scheme.
These loans are known as Cladding Rectification Agreements (CRAs). They are three-way voluntary agreements between an owner or owners corporation, a lender and a council to fund cladding rectification works.
Under a CRA, the lender loans funds to the owner or owners corporation, who then has to make loan repayments through the council rates system. This funding option offers an alternative to self-funding, securing a traditional owners corporation loan, refinancing an existing mortgage or taking out a personal loan.
The loan scheme was made possible by the Building Amendment (Registration of Building Trades and Other Matters) Bill 2018, which created the enabling framework within the Local Government Act 1989.