Applications closed in October 2020 and repairs had been completed for more than 800 homeowners, but hundreds were still in the process of doing so and another 250 had not yet signed a deal.

Deputy Minister of Finance David Seymour It announced changes that would “end the program in a way that allows for a fair resolution for applicants.”

“The program was never intended to continue indefinitely,” he said in a statement. “The government is making changes to simplify this, encourage timely settlement for remaining homeowners and avoid delays that increase program costs.”

The cost of the scheme to the Government has risen from an initial estimate of $250 million in 2019 to $717.9 million as of June this year.

Changes include:

“The amount of repair allowance that can be reused will be limited to the market value of the buildings on the property sold – assuming no damage amenable to repair exists through this program – plus the costs of demolishing damaged buildings when the property is sold.

“Other existing parameters and limitations on these alternative payment payments will continue to apply and the NHC will continue to verify the appropriateness of the proposed costs on behalf of the Crown.

“I am pleased that we achieved an outcome that benefited everyone, with the applications going well without creating further costs for taxpayers,” Seymour said.

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