Rates relief for earthquake damaged homes

The Christchurch City Council today agreed to extend its rates remission policy to help homeowners badly affected by the 22 February earthquake.

The Council last year adopted a rates relief package which covered the 4 September and 26 December 2010 earthquakes, offering the worst-affected residential and commercial properties between 30% and 40% remission on Christchurch City Council rates for a specific period.

That policy did not cover the 22 February earthquake and the Council today agreed to amend it to include those worst-affected by this event, effective until 30 June 2011. A rates remission policy for the coming financial year will be considered as part of the Annual Plan 2011/12 process. The amended policy is as follows:

• 40% rates remission for residential and non-rateable properties damaged by the 22 February earthquake and/or that are unable to be occupied from the date the property became unable to be occupied until the earlier of reoccupation or 30 June 2011.
• 30% rates remission for business properties demolished or classified by Council as R1 (significant damage repairs strengthening possible) and R2 (severe damage demolition likely) following the 22 February 2011 earthquake from 22 February 2011 until the earlier of 30 June 2011 or the property is able to be occupied.
• 30% rates remission for business properties classified by Council as R3 (unsafe due to adjacent property) following the 22 February 2011 earthquake from 22 February 2011 until the earlier of 30 June 2011 or until the property is able to be occupied.
• 30% rates remission for business properties located within the Red Zone as at 28 April 2011 following the 22 February 2011 earthquake from 22 February 2011 until the earlier of 30 June 2011 or the property is able to be occupied.

Council General Manager Corporate Services Paul Anderson says the scale of damage caused by the 22 February earthquake was much greater than earlier quakes. As a result, the cost to the city of the rates remissions package is likely to be much higher.

Council staff have estimated the cost of extending the rates relief policy to cover damage caused by the February earthquake until 30 June 2011 will fall between $2.188 million and $3.297 million. The variation in this estimate relates to uncertainty around the number of residential properties that may be demolished or abandoned in the current rating year.

“While the Council would not normally remit rates on houses severely damaged by an event such as fire, the earthquake was a significant regional event that justified the offer of rates relief for the worst-affected properties.

“The cost of the rates relief package offered following the 4 September and Boxing Day earthquakes, based on applications so far received, is $381,000. Because of the significant increase in the scale of the 22 February quake, a formal decision of Council was required to extend the scheme.”