The Government will spend $1 billion over the next five years fixing some leaky homes - if the nation's mayors agree to its latest proposal.
Building and Construction Minister Maurice Williamson announced today the Government and local authorities would contribute 25 percent of the agreed repair costs, with the homeowner picking up the remaining 50 percent.
The Government will guarantee homeowners' loans to repair their property - provided applicants meet bank lending criteria.
Only homes flagged as leaky with the Department of Building and Housing within 10 years of being finished will be eligible. A home built in 1995 but notified to the department as being leaky in 2003 would be covered but one built in the same year and not notified would not. Notifying the department effectively "stopped the clock".
Key mayors were briefed today ahead of the announcement, and a May 31 deadline has been set for majority acceptance for it to proceed.
Last year, local authorities rejected a proposal whereby they would pay 26 percent of the cost of repairs if homeowners agreed not to take legal action. The Government would have contributed 10 percent.
A Pricewaterhouse Coopers report last year estimated that 22,000 to 89,000 homes could be affected given the time period, with 42,000 likely to be leaky based on design and materials. Only about 3500 had been repaired.
Based on some missing the 10-year qualifying period, officials estimated 23,500 would be eligible for today's package.
"The Government wants to ensure we get a fair solution that will assist affected homeowners to move on with their lives," Mr Williamson said.
