HPO Reconstruction Loan Program Ended

Klondike Contracting — Fri, 25 Sep 2009 15:11:16 +0000

The Homeowner Protection Office (HPO) reconstruction loan program stopped accepting new applications, effective July 31, 2009. Here are the facts:

The Province has more than met its commitment to help homeowners with the cost of repairs to leaky condos.
The program has been in existence now for almost 11 years and all leaky buildings should have been identified – as buildings constructed under a building permit that was applied for on or after July 1, 1999, were not eligible for assistance.
Through the Reconstruction Program, the Province has approved more than $670 million in no-interest loans to help more than 16,000 households with repairs to leaky condos.
The Province has also provided $23 million in Provincial Sales Tax rebates on repairs.
The Province recently provided an additional $8.8 million to the Reconstruction Program, providing owners of water-damaged homes with support to help with the cost of repairs.
The Reconstruction Program was originally designed as a 10-year, $250-million program to respond to the leaky condo crisis in the 1990s.
Signs of water damage typically can be detected within 5 years of original construction. Since the Reconstruction Program is open to owners of condos built between July 1984 and July 1999, owners of those buildings have had 10 to 25-years to come to terms with being a leaky condo and managing their problem.
The program is funded through a $750 levy charged on residential builders on new multi-unit residential construction in the coastal climatic zone. The financial viability of the program has severely declined and can no longer be sustained.
The program will end with legislation in the coming months. All eligible applications received by July 31 will be funded.
If condo owners were planning to submit an application, they are advised to seek appropriate advice from their financial institution about the best loan options available to them. With loan interest rates much lower now than they were when the reconstruction program began, people now have other options.
Homeowners who are waiting for a decision on loan applications received before the July 31, 2009, will be informed whether they have been approved or not in the coming weeks.
As the program is still responsible for administering outstanding loans, the $750 levy will be charged for some time as the levy finances regular interest payments for homeowners who have financing through their banks, as well as the ongoing cost of administering the program.
While new applications aren’t being accepted, the wind down of the program is expected to take another 10 years to administer repayment of existing loans.
Other HPO programs and services that benefit the residential construction industry and consumers will continue. These include: licensing residential builders and building envelope renovators; administering owner builder authorizations; monitoring the performance of the third-party home warranty insurance system underwritten by the private sector; and, carrying out research and education.
You can find more information on the program by going to the HPO’s website at www.hpo.bc.ca or read the Ministry of Housing & Social Development Information Bulletin by clicking here.

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HPO Reconstruction Loan Program Ended