Key Changes to Natural Hazards Commission’s On-Sold Support Programme Announced

Established in 2019, the On-Sold Support Programme offered an ex-gratia payment to homeowners of eligible over-cap properties in Canterbury to assist with earthquake damage repairs.

Associate Finance Minister David Seymour has announced key adjustments to the Natural Hazards Commission’s (NHC) On-Sold Support Programme. These changes aim to streamline support for eligible Canterbury homeowners needing earthquake damage repairs while ensuring the programme remains financially sustainable.

Established in 2019, the On-Sold Support Programme offered an ex-gratia payment to homeowners of eligible over-cap properties in Canterbury to assist with earthquake damage repairs. Initially projected at $250 million, the programme’s cost has escalated to an estimated $717.9 million by June 2024. The recent adjustments seek to control this budgetary increase while still providing homeowners the support they need.

"The On-Sold programme has already enabled over 800 Canterbury homeowners to complete repairs and return to their homes, with hundreds more in the final stages,” said Minister Seymour. “However, this programme was not intended to continue indefinitely. The Government is acting now to simplify processes, encourage timely settlement, and avoid delays that could further inflate costs.”

Changes to the On-Sold Support Programme:

Settlement Cap: No individual application can exceed 1.5 times the property’s current rateable capital value (CV).

Strict Deadlines: Homeowners must meet new timelines to stay in the programme. They now have 30 business days to sign their Settlement Deed upon offer and six months to commence construction. Homeowners are also required to supply necessary documentation promptly to expedite their application.

Limit on Pre-Construction Project Costs: Project-management costs prior to construction are capped at 4% of the ex-gratia payment to help contain expenditure.

In addition, starting December 23, limits will apply for applicants choosing alternative settlements, such as purchasing a new home. These limits will cap repurposed repair grants to the market value of the damaged property plus demolition costs, assuming the property was undamaged. The NHC will also maintain oversight of all proposed costs to ensure appropriateness on behalf of the Crown.

"The Government is committed to helping Cantabrians repair earthquake damage to their homes as quickly as possible, while also managing the programme’s financial impact," Minister Seymour stated.

The NHC will communicate these changes directly to homeowners within the programme, with outreach planned over the next two days. Currently, around 250 applicants have yet to sign a Settlement Deed, and it is hoped that these measures will create positive outcomes and provide certainty for those affected.

“We’re implementing a responsible solution that benefits homeowners while protecting taxpayer resources,” said Minister Seymour.