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Council's leaky $10m problem could be gone by May after offer made on leaky apartments

Thursday, 25 March 2021

The Porirua City Council has received an offer for24 apartments it was forced to buy for $10 million in a 2019 leaky homes settlement.
The Porirua City Council has received an offer for24 apartments it was forced to buy for $10 million in a 2019 leaky homes settlement.

A leaky-home development bought by the Porirua City Council two years ago for $10 million could finally have a new owner.

The council has received a substantive offer for 24 townhouses at the hillside development in View Rd, Titahi Bay, which the council bought in 2019. Chief operating officer Andrew Dalziel​ would not reveal the sum or who had made the bid.

The council's purchase of the properties stems from 2007 when it consented the development, despite failing it days earlier. The development was later found to be significantly affected by water issues.

The council is now calling for offers from any other parties interested in the 12 two-bedroom and 12 three-bedroom units, which are to be sold as one lot, before a final settlement is made. Dalziel said a draft sale and purchase agreement had been drawn up, and a decision could be put in front of councillors as soon as May.

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The council's purchase of the properties stems from 2007 when it consented the development, despite failing it days earlier. The development was later found to be significantly affected by water issues

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The apartments have proven to be a headache for the council.

In 2017, after a failed claim to the Government scheme set up to deal with leaky homes, the body corporate and 24 of 25 owners filed proceedings against the council in the High Court. The council took ownership on May 9, 2019, and sale prices ranged between $356,000 and $418,000. One unit remained in private ownership.

Problems with the dwellings included inadequate waterproofing membranes to the floors and walls, poorly detailed flashings to the balconies and a lack of drainage at the base of the cavity walls.

The council received at least two offers on the development last year, but both were rejected.

Eleven of the units were being brought up to tenantable standard by the council under the healthy homes standards, though Dalziel could not say how much that had cost the council because work was still underway.

Offers on the apartments close on March 30.