Following on from the submissions that were made on the
preliminary draft of the Red Zone Recovery Plan in May, the Chief
Executive of CERA has released the Draft Residential Red Zone Offer
Recovery Plan, containing his preliminary views on the offers that
are likely to be made to red zone property owners.
These views are:
for vacant properties, a new Crown offer at 100 per cent of the
2007 rateable land value;
for commercial and industrial properties, a new Crown offer at
100 per cent of the 2007 rateable value for both land and buildings
(although as with the original red zone offer for insured houses,
owners may choose not to accept the offer for the building and deal
with their insurer over that aspect; and
for uninsured properties, a new Crown offer at 80 per cent of
the 2007 rateable land value, with no payment for uninsured
improvements (such as buildings).
The Chief Executive has confirmed that former owners of vacant,
uninsured and commercial and industrial properties in the red zone
who have accepted a previous Crown offer will be eligible for an
additional payment if the new Crown offer is greater than what was
A second round of submissions is now open, allowing the public
to have their say about the proposed offers. Once the submissions
are reviewed the final version of the Recovery Plan will be given
to the Minister for approval. If approved, new Crown offers are to
be made to the owners of vacant, uninsured, and commercial and
industrial red zone properties as soon as practicable.
The Draft Residential Red Zone Offer Recovery Plan is available
Submissions on the Recovery Plan can be made in a number of
ways, including on the website, by mail, or by Facebook or Twitter.
Regardless of the method of making the submissions, they must be
made by 5pm on Thursday 9 July to be considered.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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