They want the government to be clear that councils will have no liability for faulty building work they have had no role in inspecting.
The Dunedin City Council yesterday approved a submission about a government plan to make it easier to build small, self-contained and detached houses, commonly known as granny flats.
Work would still need to comply with the New Zealand building code.
The proposed changes are aimed at increasing the supply of affordable homes and meeting demand for small houses.
Dunedin Mayor Jules Radich said running a different set of standards for granny flats had a lot of potential for failure.
"The proposal could be workable if there’s no liability for councils," he said.
Cr David Benson-Pope felt it was inevitable homeowners would pursue councils once they had found "some of what they’ve bought is a dog".
He described inspections as a public good.
"It’s important we do what we can to protect our community against shonky behaviour."
That council could be considered liable for problems when it had no role in consenting or inspections was absurd, he said.
The proposal would allow some small homes to be built cost-effectively when there was a desperate housing shortage, he said.
"We’ve got far too much paperwork now and far too few homes being built."
Cr Vandervis voted against the council’s submission, which was approved 12-1.
Cr Carmen Houlahan said she agreed council liability sounded bizarre, but "when things turn to custard, people look for someone to blame".
"Will insurance companies even insure any of these buildings?"
Feedback about the proposal was sought by the Ministry of Business, Innovation and Employment and the Ministry for the Environment.
Submissions close on Monday next week.
