Source: Auckland Council
Property Categorisation
Can you explain what the delay is in the negotiation process between the Government and Auckland Council, and will further delays affect the categorisation process?
The negotiation process covers really complex issues and represents a significant cost to both ratepayers and taxpayers. We need to make sure we get this right the first time. The negotiations will inform major complex financial and policy decisions that will have long term implications for Auckland. We regret that the process has been delayed, as we want to get certainty for homeowners as quickly as possible, but we need to get it right.
The negotiation process does remains confidential, but as soon as we have an outcome we can share, we will. We are hopeful that negotiations will conclude shortly.
What’s taking so long to provide a category, compared to what they’re doing in the Hawkes Bay?
There has been comparison with the Hawke’s Bay, where they’ve been able to move groups of homes en masse from Category 2C to Category 1 once the repairs are made to something like a stopbank. Auckland’s denser built urban environment and land typography is very different, so in Auckland we need to go property by property to assess whether there are any options to reduce the risk to the people living there.
In Auckland, we estimate up to 5,000 individual flood assessments are required, in addition to 250 geotechnical inspections (plus geotech studies in Muriwai, Piha, Karekare). Each property’s circumstances are unique, and it takes time to work through the information, we want to ensure we assign the correct category to a property.
This scale of site assessments will take months to complete. The skills shortage in the technical fields of flood and geotechnical engineering prevent us being able to do this work faster. A challenge we’re dealing with is sharing a limited number of specialists with affected regions – professionals that were in short supply even before the disasters. In the case of geotech, we’re contracting teams beyond Auckland to help with the desktop work because there’s just not enough resources available here.
Is Category 3 just for properties with a risk of loss of life from flood or landslide, or does it also apply to properties that are unrealistic to repair due to damage sustained?
Category 3 applies to future risk from flood or landslide, however in most cases where a property was damaged and is unrealistic to repair, it is likely that the future intolerable risk. There may be a few exceptions, and community-level flood protection options will play a part in determining future risk.
If my property is placarded red/yellow, why can’t you tell me it’s category 2/3?
The placarding process and the risk categorisation are two different and independent processes – the colour of a placard doesn’t determine a property’s risk category.
Rapid building assessments were used to assign placards. These assessments determine whether a building is safe to occupy and if it poses a safety risk to others based on the current state of the building and / or land. Following a rapid building assessment, a building will receive a placard.
Placards (or ‘stickers’) indicate a building’s level of safety and whether people can be in it. Only authorised officials can place, change or remove them. A white placard means there are no access restrictions, a yellow placard means access is restricted, and a red placard means access is prohibited.
As part of the property risk categorisation process – your property is being assessed based on the likelihood of impacts and risk to life during future severe weather events. This is the key difference between this process and placarding – this process is looking at future risk whereas placarding looked at immediate safety risks and whether your property was safe to be in now.
This site assessment looks at whether there are changes that can be made on the property or surrounding area to reduce the future risk of serious flooding or landslides to the home. This includes considering Auckland Council’s proposed “Making Space for Water” initiatives for flood affected properties. If there aren’t any practical and financially viable solutions and there is an intolerable risk to life, then it’s likely the property will be Category 3.
Can property owners have an influence on the final categorisation of a property? / Will there be an appeals process if I disagree with the category assigned to my property?
Once we have assigned your property a category, there will be an opportunity to provide additional information if you disagree. We will take an evidence-based approach to assigning categories, including technical site assessments where needed.
What is the process for changing from an initial Category 1/2 or 2/3 to Cat 1, 2 or 3?
Where a property is marginal and could go between two categories, we’ll need to do a further site assessment to look specifically at your property. We will speak with you directly to explain this if you fall into one of these scenarios, and we’ll seek your permission before visiting your property.
This site visit will look at your individual property to identify whether there’s a practical mitigation available to protect your home. If there isn’t any practical solution, your home will be considered Category 3.
When will the details of the process that will follow categorisation for Cat 2 and Cat 3 be available?
These processes are still being worked through, and will be confirmed in the coming weeks.
Some details will be determined by the government negotiations – for example what financial support may be available for Category 2 homes. There are also decisions that Auckland Council will need to make specifically for Auckland, such as whether the Council agree the government co-funding offer and how things such as property valuations are set. We expect Aucklanders will be consulted on their views and preferences relating to the proposal for Category 3 buyouts during September.
We know that you need to understand what is next after you receive a category, and we are working to confirm these details as quickly as we can.
How will the property buy-out process work and when will it occur?
We are working with central government to determine the process for buy-outs and the timeline, and when we have more detail we will let you know.
It’s important to remember that policy framework and systems and processes to do this at the scale that is needed across Auckland don’t exist and importantly, the funding doesn’t exist. Any property buyouts will need significant funding from ratepayers and taxpayers.
Auckland Council will need to consult with Aucklanders on the cost of the programme and the financial commitment needed.
How will buyout valuations be calculated and by whom?
Auckland Council is working on a valuations policy that will be confirmed after the cost share negotiations with central government are complete. We will look to determine a fair and reasonable approach that recognises the significant financial hardship faced by homeowners and balances the high cost of a buyout programme to Auckland ratepayers.
Will Auckland Council remove some of the barriers to getting resource consents for remediation (eg timing, costs)?
Auckland Council’s Recovery Office is discussing this with our Regulatory Services team and will provide some further information when we have it.
Will property owners be able to access funding for property specific remediation?
The Government has indicated it is prepared to co-fund property-specific protection work. Details of this are still being worked through as part of the negotiations with the Government. Council is preparing advice for property owners
Remediation work to repair damage that isn’t designed to protect the property from future risk would be expected to be covered by property owners, in most cases through insurance.
Will Auckland Council allow any remediation on council land?
This would be considered on a case by case basis with the Parks and Community Facilities department as the reserve administrator (where applicable) and manager of the park land. Parks and Community Facilities have a land owner approval process that provides a structured approach and advice for any proposed works.
If a Category 2 property is unable to receive resource consent, will it be moved to Category 3?
This would need to be considered on a case by case basis on the particular circumstances.
Rates Relief
Why is the council offering rates relief?
We are aware of the financial hardship experienced by many of those impacted by extreme weather events during the first half of 2023. This rates remission is targeted at those people with uninhabitable homes who have been affected most by the extreme weather events in the first half of 2023.
Do I qualify for rates relief?
Auckland Council agreed a rates remission programme to support residents in need with 100 per cent rates remission for uninhabited storm damaged homes. Red placarded houses as of 30 June 2023 will receive 100 per cent rates relief for the full 2023/2024 rating year. Homeowners that received a yellow or white placard can apply for rates relief if they are unable to live in their home. More information is available here.
When will my property’s rating valuation be reassessed?
If there has been significant and long-lasting physical damage because of the extreme weather events in the first half of 2023, you can request a rating valuation review. Otherwise, your rating valuation will remain as it is until the next city-wide revaluation which is due for publication late 2024 and will be used to set rates for the 2025/2026 rating year.
What are the property risk categories?
The risk categories are different from the coloured placards that were assigned to damaged homes after the storms this year.
|
Category |
Definitions |
Examples |
|
1 |
Repair to previous state is all that is required to manage future severe weather event risk. |
Minor flood damage to repair but no need for significant redesign or retrofitting. |
|
2C |
Community level interventions are effective in managing future severe weather event risks. |
Local government repairs and enhances via flood protection schemes will adequately manage the risk of future flooding events in the face of climate change effects. |
|
2P |
Property level interventions are needed to manage future severe weather event risk, including in tandem with community level interventions. |
Property specific measures are necessary e.g., improved drainage, raising houses. Benefits accrue to property owners, but some may face affordability issues. |
|
2A |
Potential to fall within 2C/2P but significant further assessment required. |
Interventions might be possible or required, but there is insufficient information to provide initial categorisation. The property may move between two categories or to categories one or three. |
|
3 |
Severe weather event risk cannot be sufficiently mitigated in the future. Some current land uses may remain acceptable, while for other properties there is an intolerable risk of injury or death. |
In the face of enhanced climate risks, the property may face an unacceptable risk of flooding in the future. Other properties could be subject to unstable land that poses an ongoing risk. |
