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 accepted.
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 here.
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.
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