The New South Wales government has released details about how it will help strata owners remove combustible cladding from the worst affected high-rise buildings in the state. The initiative has been badged, Project Remediate. 

The initial details indicate that this is a well thought through model that provides an innovative way of leveraging government support and private finance to provide much needed relief to strata owners. 

Sources close to government say the scheme will work like this:

• high risk buildings on the government radar will be contacted and invited to apply for funding;
• resources and professional guidance will be provided to assist owners and their suppliers and advisors make sure that the remediation work they undertake is up to specification;
• owners corporations will need to enter into a strata finance loan with an approved provider to fund the remediation work; and
• the government scheme will fund the interest on the loan for up to three years. 

There are two features of this scheme that will be of great benefit to the worse affected by the combustible cladding crisis. First, this will allow work to commence while giving individual owners three years interest free to find the money from their own resources to pay back the strata loan. Second, the advice provided via the building commissioner’s office will ensure that the work and products being supplied fix the problem once and for all. 

Some will argue this is not enough on the part of government and a total bail out should be made. Realistically, it’s hard to see how that would fly politically and this is a step in the right direction towards a long-term solution.

Further details are to be released later this month.