Financial Assistance Program (FAP)

Under the Financial Assistance Program, leaky homeowners share the agreed actual repair costs with the Government and Council.

The Government and Council (where it signed off on the original building work) each pay 25 per cent of the repair cost and the homeowner pays the remaining 50 per cent. If the Council didn’t sign off on the building work, or has chosen not to participate in the FAP, then the homeowner can only recover 25% of the costs under the scheme (i.e. the Governments contribution).

To use the FAP, homeowners must agree not to sue contributing councils and the government, although they can still pursue other liable parties such as builders, developers and manufacturers of defective products.

To be eligible for the FAP, the following criteria applies:-

• water has penetrated the dwelling because of some aspect of the design or construction or alteration of materials used in its construction or alteration;
• the dwelling is damaged as the result of water penetrating from the outside in;
• the dwelling was built (or altered if applicable) in the 10 years immediately before you lodge your claim.

For more information about the FAP, you can visit the Department of Building and Housing website at www.dhb.govt.nz.