Homeowners of flood-damaged houses in Auckland will receive compensation following a decision by the Auckland Council. The council has unanimously accepted a proposed agreement with the Crown, allocating more than $2 billion for flood recovery and resilience projects, which include buying out severely affected properties.
With this agreement, homeowners will be offered 95% of their property’s pre-flood market value. The remaining 5% will function like an insurance excess. Uninsured homeowners will be offered a minimum of 80% of their property’s pre-flood value, potentially increasing to 95% in certain situations.
Mayor Wayne Brown emphasised the importance of aiding residents, stating, “Eight months after the floods, many Aucklanders are still grappling with the aftermath. Assisting them is the right course of action.”
However, financing the agreement will require the council to borrow up to $800 million. Brown confirmed that this loan would be repaid through a rise in rates. He highlighted that most ratepayers are willing to support their fellow Aucklanders affected by the floods.
The property buyouts are set to commence by the end of October, prioritising uncomplicated cases first. Brown stressed that this strategy should not be viewed as a standard for potential future buyouts, urging the government to implement a nationwide scheme for such disasters.
Included in the agreement is $820 million reserved for resilience projects such as improved maintenance and bridge upgrades, while an additional $390 million will be allocated for transportation network repairs, notably for areas like Karekare and Piha. The government is contributing $1.076 billion towards these projects.
Mayor Brown emphasised the importance of reinforcing the region against future weather calamities. He is optimistic about the uninterrupted progression of the agreement, regardless of potential governmental changes, as the initiative has garnered significant support from Auckland ratepayers.
