Hundreds of homeowners to get voluntary buyout offers for cyclone-hit properties

Thursday, 1 June 2023

The Government will work with councils to make voluntary buyout offers to homeowners of property in designated Category 3 areas, Cyclone Recovery Minister Grant Robertson said, at a June 1 press conference.

About 700 homeowners nationally will get Government and council buyout offers after suffering damage in cyclones earlier this year.

Areas badly hit by cyclones have been designated a category depending on the extent of damage and the potential for rebuilding. Category 3 could be likened to Christchurch’s ‘red zone’, where properties were deemed high risk and unsafe to rebuild there, and these property owners would be offered a buyout.

Properties in category 2 would not be bought out and instead Government said it would work with councils to “help them build flood protection and other resilience measures”, a statement said.

* Cyclone-affected homeowners learn on Thursday if they can rebuild

Finance Minister Grant Robertson, with associate Michael Wood, announce the plan for a buyout scheme for homeowners badly affected by cyclones.

* Government announces categories to apply to cyclone-affected properties

Much of Esk Valley has been zoned ‘Category 3’.

Minister of Finance and for Cyclone Recovery, Grant Robertson, said the Government would enter into a co-funding arrangement with councils for the voluntary buyouts for owners of category 3 designated residential properties.

It will also co-fund the work needed to protect category 2 designated properties.

Homeowners in Hawke’s Bay learnt of their property’s designation on Thursday morning when maps were published, with some 236 properties listed provisionally as category 3, and more than 2500 as category 2.

For other areas, “our understanding is Auckland Council will be talking to property owners from June 12 and Tairāwhiti has already begun contact with property owners in category 3, with the remainder to be finalised over coming weeks,” Associate Minister of Finance Michael Wood said.

“It is also important to note that there may be some properties in other cyclone-affected regions like Northland and Wairarapa that are designated as category 2 and 3. The Government will support councils in those regions in the same way.

“Initial indications are that across all regions there will be about 700 Category 3 properties, and up to 10,000 homes in category 2 areas,” Wood said.

Flooding in Hawke's Bay as a result of Cyclone Gabrielle in February. (This video was first published in March, 2023)

The maps for Hawke’s Bay show the areas that fall in each of three categories, with a caveat that they are provisional and have not yet been reviewed.

A large part of Esk Valley falls within category 3 – where the risk may be so great that property cannot be rebuilt there. Parts of Pākōwhai, Brookfields, Tangoio and Rissington also fall in the highest risk area.

Residents have been informed about how the risk assessment process will proceed, “and you will likely be wondering what this means for you and the area your property is in”.

“The risk assessment process is helping build a picture of how likely it is that there may be future severe weather events that pose a risk to life and, where there is risk, if there is a way this risk could be managed to ensure it is safe for people to live in the area,” they are told.

The regional council’s role in the land categorisation process is to provide technical data and assessment of future severe weather event risk in impacted areas across the region.

Central Hawke’s Bay District Council, Hastings District Council, Napier City Council and Wairoa District Councils will “deliver a locally led engagement process, supported by regional and central agencies”.

“From mid-June onwards, local Councils will commence the next stage of the process which will involve engagement directly with property owners and impacted residents in each area.

“If you are in a Category 2 or Category 3 area, your local Council will be in touch with you again by Friday, 9 June to let you know the details of the engagement process for your area and how you can be involved,” the residents have been told.

Thursday marks the 108th day since Cyclone Gabrielle killed 11 people and displaced thousands.

After the storm, Cyclone Recovery Minister Grant Robertson stressed that the government would not draw out the process of declaring ‘red zones’ as was done following the 2011 Christchurch earthquake, where it took four months (or 122 days).

The risk categories were worked out by the region’s city and district councils, the Hawke’s Bay Regional Council, and the Government’s Cyclone Recovery Taskforce, which have assessed future severe weather risk in areas across the region.

“This process has involved looking at information from a range of sources, including the Hawke’s Bay Regional Council, the Ministry for the Environment, and claims data from insurance companies. Everyone involved in the recovery is aiming to provide people with as much certainty as possible, as quickly as possible. These are hugely complex decisions, and we need to balance the need for certainty with the need to get it right,” residents have been told.

The released maps are provisional and “This data may be reviewed and altered at any time, without notice” residents are told.

“Severely affected localities will be advised when the maps are independently verified and peer reviewed and the website will be updated”.

These hazard maps were prepared using the following information:

Approximate flood extents derived from air photos taken on or around Feb. 16, 2023 (Post Cyclone Gabrielle) by Skycan.
Rapid building assessment data for Hastings District Council, Wairoa District Council, Napier City Council, and Central Hawke’s Bay District Council.
Contour information derived from LiDAR data collection November 2020.
Photographs of flood extents and flood damage and information supplied during public meetings and discussions with residents.
Information from insurance providers.