NSW Government lets dodgy builders off the hook

Image result for Bianca De Marchi/AAP

Bianca De Marchi/AAP

WHY is the New South Wales government struggling to implement building industry reforms recommended by the Shergold-Weir report over two years ago?

NSW Government lets dodgy builders off the hook

Leith van Onselen

By Leith van Onselen in Australian Property

March 5, 2020 | 6 comments

Geoff Hanmer, Adjunct Lecturer in Architecture at UNSW, claims that proposed NSW Government reforms to building certification will let dodgy developers off the hook:

The New South Wales government is struggling to implement building industry reforms recommended by the Shergold-Weir report over two years ago.

Developers are home free in its proposed legislation; the Design and Building Practitioners Bill doesn’t even mention them. They still appear to be in a position to collect the profits and then phoenix themselves if something goes wrong.

And something is going wrong all too often. David Chandler, the NSW building commissioner appointed to oversee the reforms, said recently he was “ a bit despondent” after seeing “some really regrettable things out there” in a program of site visits…

The bill has the avowed aim of making people who design and build buildings responsible for non-compliance with the National Construction Code by getting them to sign certificates attesting that the building is built according to the code.

This is a guarantee of not very much. The code does not regulate durability or require that buildings be waterproof. Plus, of course, many people have been signing similar certificates for certifiers without it having had much impact to date.

The bill has many other faults and omissions. It does not require a principal design practitioner to be appointed to a complex project and no one is identified as the lead consultant. This means there is no person identified to coordinate design work between all disciplines (architecture and engineering) or to ensure design declarations relate to work as actually done, taking into account all engineering designs and site conditions.

The most critical problem is that the people signing the attestations are not required to actually inspect work during construction. Such a requirement was a key recommendation of the Shergold-Weir report.

The purpose of the bill, other than as political soft soap, is unclear…

[The NSW Government is] in thrall to the development industry, which believes reintroducing these measures will reduce its profits.

The developers are right about this; building properly is more expensive. But I think most buyers would happily pay a bit more for a safe and durable product. They do that when buying consumer durables such as cars and appliances.

The fact of the matter is that for the better part of 20 years, the development industry demanded more and more deregulation and the removal of “red tape” in the planning system to allow them to build bigger apartments faster. This, they claimed, would allow housing supply to respond to demand and help fix the housing crisis.

Instead we’ve gotten rubbish apartment blocks spreading like weeds across Sydney, many requiring rectification, with owners and taxpayers left to pick up the tab.

For years, the development industry has been allowed to run rampant across Sydney. It now must be muzzled, not placated, by the NSW Government.

Leith Van OnselenLeith van Onselen is Chief Economist at the MB Fund and MB Super. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

CAAN Photo: Spalling (concrete cancer) alongside ramp down to basement parking; the basement has wall cracks, multiple cracks in concrete floor and water leaks down the walls!

CAAN: Suggestion when buying an apartment check the basement carpark for like defect signs … the basement holds up the rest of the building!

SOURCE: https://www.macrobusiness.com.au/2020/03/nsw-government-lets-dodgy-builders-off-the-hook/

NSW tells flammable building owners to fix it themselves

David Chandler

PHOTO: NSW building commissioner David Chandler said building owners might have to cover the costs of repairs themselves. (AAP: Bianca De Marchi)

WHAT else could we expect?

WERE the Building Commissioner’s hands tied behind his back?

WAS it all a Charade … so that the Berejiklian Government could be seen to be doing somethin’?

THE NSW GOVERNMENT has had its Stamp Duty coffers overflowing for much of its terms since 2011 to date … yet it can’t fund the cost of cladding replacement?

Illustration: John Shakespeare

WE HAVE THE NUMBERS SYDNEY ….

ARE we going to allow these punks to continue to build 85% defective rubbish and clad with cheap combustible cladding? And walk away Scot free?

NSW tells flammable building owners to fix it themselves

By Leith van Onselen in Australian Property

February 25, 2020 | 9 comments

After experiencing an unprecedented boom in high-rise apartment construction over the past decade:

And with flammable cladding and structural faults proliferating across Sydney, the NSW Building Commissioner has told apartment owners not to expect a ‘bail-out’:

David Chandler

The NSW Building Commissioner has warned that owners of buildings with defects will not be bailed out by the Government.

“There isn’t a glove that’s going to land around them and write a cheque to rectify [the problems],” he said during a parliamentary inquiry into the state’s building standards.

He added that in instances where there was not a building company to seek damages from, owners would “have to stump and get that work done”.

The State Government will this week again attempt to get through the Upper House its Building Practitioners Bill, which aims to provide a legislative framework to better regulate the industry.

Going by the ABS’ approvals data, around 200,000 high-rise apartments were built across NSW over the past decade, a significant percentage of which likely contain faults.

The cost of rectification will be massive, with owners facing hefty bills while many developers getting away scot-free.

While the announced Building Practitioners Bill is welcome, it amounts to shutting the gate long after the horse has already bolted.

The NSW Government is too late the hero and should never have allowed this situation to develop in the first place.

Leith Van Onselen

Leith van Onselen is Chief Economist at the MB Fund and MB Super. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

SOURCE: https://www.macrobusiness.com.au/2020/02/nsw-tells-flammable-and-defective-building-owners-to-fix-it-themselves/#comments

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ALERT! NSW Construction Crisis Fix is Two Years Away!

WILL the Berejiklian Government ‘see reason’ and return the Design and Building Practitioners Bill to the upper house with what appear to be reasonable changes submitted by the Greens for an independent building commission to support the work of Mr Chandler, and the Labor proposal for the establishment of a professional engineers’ registration scheme?

WHAT’s the problem?

THIS should happen as soon as the last week of February! Especially since the report aired of the $6,371,572 Property Development Sector donations to the Liberal Party May 2019 Election Campaign!

VIEW: https://caanhousinginequalitywithaussieslockedout.com/2020/02/07/aec-figures-show-property-sector-donations-favour-the-liberal-coalition-at-eight-to-one/?fbclid=IwAR0b8apOCg9zZCCWfM6s_Ffby0GKOLLx1_xbl0n7jB-1DIqFL79AsUVNYJI

EXTRACT: ‘Warning NSW construction crisis fix is still two years away’

By Megan GorreyMatt O’SullivanLaura Chung and Nigel Gladstone

David Chandler, NSW Building Commissioner made his comments following the emergency crews called to Mascot Towers on Thursday night.

‘The NSW Building Commissioner has warned a major fix to the state’s residential construction crisis is two years away, as fresh cracks emerged in Sydney’s troubled Mascot Towers apartment block.

In an interview with the Herald, David Chandler admitted he had been “a bit despondent” after visiting some “pretty awful” construction sites in recent weeks.

Victoria Police fear emerging gun culture after string of shootings

Play video1:19Fresh concerns around Sydney’s Mascot Towers

Fresh cracks have shown in Sydney’s infamous Mascot Towers.

“There are some really regrettable things out there that abhor me,” he said.

“We’ll be in a much better position by 2022 once we’ve started to change the culture of the industry and get people back to what they should be doing.”

Many of Mr Chandler’s measures to better protect owners from shoddy industry practices hinge on the Berejiklian government being successful in a renewed attempt to push its building reform package through the NSW upper house later this month.

“If I can substantially reduce the incidence of [building defects] and ensure that’s not what’s coming through the pipeline – that to me is the most impactive thing we could do,” Mr Chandler said.

Buildings across Sydney have been evacuated due to safety concerns.
Buildings across Sydney have been evacuated due to safety concerns. CREDIT:KATE GERAGHTY, NICK MOIR, BROOK MITCHELL

Mr Chandler said he had been “actively out there” on sites in an attempt to ensure owners and residents being crippled by building defects was “not the case for the future”.

“We’ve set up a framework for much clearer accountability of the parties. Until now that clarity hasn’t been there,” he said.

“At the moment there’s no order – there’s grey areas everywhere.”

Former NSW treasury secretary Michael Lambert, who led a landmark review into building regulations in 2015, said he had greater confidence in the most recent measures planned to rectify the shortcomings in building standards.

But he warned there would continue to be a risk over the next two to three years in the large strata buildings erected.

“There will be dodgy brothers around building dodgy buildings,” he said. ‘‘There is not a magic wand – I wish this process had been commenced some time ago.”

Mr Lambert said the key to improving standards was developing a “risk-based approach” that targets high-risk developers, builders and buildings and ensures they have insurance.

“For builders, that means professional indemnity insurance. It is about using that to try to put pressure on builders which are not up to standard,” he said.

“The approach [the building commissioner] has adopted is sound.”

The government abandoned an attempt to pass key legislation by the end of 2019, when it pulled its building reform bill from the NSW upper house as it faced defeat on significant changes proposed by Labor and the Greens.

The Greens wanted an independent building commission to support the work of Mr Chandler, while Labor was proposing the establishment of a professional engineers’ registration scheme.

RELATED ARTICLE

On Thursday nights, fresh concerns emerged over cracking to a brick facade.
DEVELOPMENT OUTRAGE

Cracks reported in brick facade of Mascot Towers as shops evacuated for up to six weeks

Despite the setback, the government will return the Design and Building Practitioners Bill to the upper house in the last week of February.

Owners Corporation Network executive officer Karen Stiles was pleased the building commissioner was “attacking the problem on a number of fronts” but said “building quality is an absolute issue”.

“Most of our members come to us because of building defects. I’ve had people crying, there are people who are suicidal about these things. We’ve got a long way to go,” she said.’

VIEW for the full report: https://www.smh.com.au/national/nsw/warning-nsw-construction-crisis-fix-is-still-two-years-away-20200207-p53yuw.html

Buildings across Sydney have been evacuated due to safety concerns.

FLAMMABLE CLADDING Spreads to Thousands more Apartments

Biowood cladding on Ryde building. Photo: Supplied

BIOWOOD has now been declared UNSAFE by NCAT!

-70% pulped wood

-23% PVC

Owners of apartments in buildings out of the six-year claims period, however, won’t be able to sue developers and builders for defects

CAAN has come up with a Campaign Plan … WHY not have a go?

 … Because unless you do, you will definitely not get a ‘Fair Go’!

CAAN’s Campaign can be adapted to many issues!

https://caanhousinginequalitywithaussieslockedout.com/2020/01/28/until-it-happens-huh/?fbclid=IwAR3DXBQb17_gwhax57LOk6qAhdpaZyTahPd1Q3005yhZk2ByvFOuSVjMr9I

Flammable cladding spreads to thousands more apartments

By Leith van Onselen in Australian Property

January 28, 2020 | 4 comments

Australia’s flammable cladding fiasco is expected to worsen after so-called “biowood” was declared unsafe by a NSW Civil and Administrative Tribunal (NCAT) tribunal judgment:

If not overturned, the ruling over Biowood – a composite material of 70 per cent pulped wood and 23 per cent PVC – will vastly widen the scope of materials apartment and commercial building owners have to scrutinise in assessing the fire dangers of their buildings

Building services company Roscon, which inspects buildings and advises on rectification, said the ruling could prompt reconsideration of the scope of products considered in the audits led by state governments.

“There is a multitude of products out there in the industry that are used as cladding facade product that will now come [under] scrutiny,” Roscon national general manager Sahil Bhasin said…

The ruling orders Taylor Construction and Frasers to replace the Biowood attachments on the walls of the two buildings with 148 apartments, and to pay the costs of the owners’ corporation that brought the case.

According to Faiyaaz Shafiq of JS Mueller & Co Lawyers, who conducted the case at NCAT, the ruling could impact “thousands and thousands more buildings all across Australia”:

“This will affect thousands and thousands more buildings all across Australia”

“We think this is the first ruling in Australia, and possibly in the world, against Biowood, and it will have consequences for so many buildings that used it, thinking of it as a safe and aesthetically pleasing cladding”…

*Owners of apartments in buildings out of the six-year claims period, however, won’t be able to sue developers and builders for defects; they will be compelled to undertake the replacement at their own cost.

The bill for removing flammable aluminium cladding was already estimated to be “many, many billions of dollars”, so adding ‘biowood’ to the mess will obviously lift the repair bill further.

This is more bad news for Australia’s growing army of apartment dwellers who, through no fault of their own, are being left with financially crippling repair bills, alongside apartments whose values are being decimated.

When viewed alongside the widely reported structural faults across Australia’s high-rise, it is clear that the whole building industry is dysfunctional and needs a royal commission.

With Australia’s population growing like a science experiment due to mass immigration, and apartments now the dominant form of new housing across Australia’s major cities, the industry must be cleaned up as a matter of urgency.

Leith Van Onselen

Leith van Onselen is Chief Economist at the MB Fund and MB Super. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs. Share on Facebook

  • The Combustible Cladding You Don’t Know About
The combustible cladding you don

A NSW tribunal found timber cladding on this apartment building in Ryde was combustible and non-complaint with the building code. Photo: Renee Nowytarger Photo: Renee Nowytarger

SOURCE: https://www.macrobusiness.com.au/2020/01/flammable-cladding-spreads-to-thousands-more-apartments/

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Nearly one in five sellers in high-rise suburbs lost money

WHAT do you make of this?

DESPITE aspiring First Home Buyers now tending to steer clear of newly built high-rise apartments … with apartment suburbs in freefall after tower disasters …

OWNERS are being forced to drop their price by as much as $60,000 or $ 70,000 yet developers are still forging ahead with high-rise …

THE home seller may lose this much but the developer is still set to gain as each unit is built for say $200,000 … give or take …

-high density of high-rise towers very lucrative for developers

THE Property Council is running Australia with their former policy writer at the helm … so for the next 50 years Sydney is set to grow by 107,000 people annually

47,000 Chinese fly into Australia every week; with more at Chinese New Year and Golden Week

-a huge number of homes built very quickly; the 85% defective on completion rate is likely to be maintained

-Berejiklian Govt instead of enforcing the recommendations of Lambert, Shergold and Weir proposes a ratings scorecard for builders

MORE OF THE SAME! OR ARE YOU GOING TO JACK UP SYDNEY? .. IT’S YOUR CALL

IF you are fed up with the Housing PONZI Scheme and want to change this …. message us through our Facebook link below for a Campaign Plan! *

Related Article ….

NSW Government proposes ratings scorecard for builders to prevent construction disasters

https://caanhousinginequalitywithaussieslockedout.com/2020/01/21/nsw-government-proposes-ratings-scorecard-for-builders-to-prevent-construction-disasters/?fbclid=IwAR0S5HrAsQhYUQqA4lILgzADmhTT80zKGkXRmIBNvbmaNHmy1hDU3VaGBwc

EXTRACT: Nearly one in five sellers in high-rise suburbs lost money

Aidan DevineAidan Devine 25 JAN 2020Opal Tower

There is an oversupply of high-rise apartments in parts of Sydney, with plenty more units still under construction. Picture: Angelo Velardo

Losses are mounting for unit sellers in Sydney’s high-rise suburbs as a recent spate of building disasters sours buyer demand for homes in large apartment towers.

Close to one in five sellers in the high density Parramatta and Canterbury-Bankstown council areas exchanged their properties for less than they paid for them, while about 15 per cent made a loss in Ryde.

Sellers also made frequent losses in the Strathfield council area – which neighbours Sydney Olympic Park’s Opal Tower, a building residents were forced to evacuate in late 2018 due to dangerous cracking.

-about 16% of sales incurred a loss for vendors: CoreLogic records for September quarter

MORE: Sydney’s auction hotspot revealed

Demand for housing at record high

-average seller in these city regions lost between $60,000 – $70,000 after 4 years

YET with the remainder of Sydney, sellers rarely lost money due to record-low interest rates fuelling housing demand.

Residents of Olympic Park’s Opal Tower were forced to evacuate over dangerous cracking.

-more than 90% of city sellers sold with a profit with average profits from $70,000 in Burwood to $1.1 M in the northern beaches.

-almost 99% of Mosman sellers made a profit; just over 95% of sales vendor profit in council areas of Waverley, North Sydney and Hunters Hill

CoreLogic head of research Eliza Owen said sellers in high-density suburbs were struggling because there were too many other vendors to compete with at a time when buyers were turning away from high-rise units.

“Cracking would have made buyers weary … property is probably the biggest purchase they’ll make,” Ms Owen said.

“There’s also a huge supply of (high-rise) properties up for sale, most of which were meant to appeal to investors.

Ms Owen added there was a rush from some investors in high density areas to sell because rents were falling and vacancies were rising, increasing their holding costs.

-investors selling properties were head to head with developers who continue to release new housing

nearly 45,000 new units recently approved across Parramatta and Ryde LGAs

Realestate.com.au head of economic research Cameron Kusher said the longer-term outlook for unit sellers was more positive.Darmo Aerial

Parramatta has one of the biggest pipelines of new unit projects.

It would likely take 18-24 months for excess housing stock in areas like Parramatta to get absorbed if population growth trends continued, he said.

-sellers in the northern beaches and eastern suburbs selling for large profits with 3 and 4 bedroom homes appealing to families; dominant in the market

SELLERS WHO LOST MONEY (by LGA)

Parramatta 19%

Canterbury 18%

Ryde 16%

Strathfield 16%

Cumberland 15%

Source: CoreLogic

SOURCE:

https://www.realestate.com.au/news/nearly-one-in-five-sellers-in-highrise-suburbs-lost-money/?rsf=syn:news:nca:dt:spa

IF you are fed up with the Housing PONZI Scheme and want to change this …. message us through our Facebook link below for a Campaign Plan!

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NSW moves too late on dodgy high-rise builders

NSW moves too late on dodgy high-rise builders

By Leith van Onselen in Australian Property

January 21 2020

After experiencing an unprecedented boom in high-rise apartment construction over the past decade:

And with flammable cladding and structural faults proliferating across Sydney, the NSW Government has finally taken action by giving the NSW Building Commissioner the power to block dodgy developers from building high-rise:

Designed to prevent repeats of the Opal and Mascot Towers ­crises, the reform package — likely to form a blueprint for a national ­industry shake-up — will grant sweeping powers to the NSW Building Commissioner to stop defective apartment blocks from being built, particularly if they are linked to contractors with poor track records…

The new regulations will for the first time rank builders, developers and certifiers according to their record on workplace safety, their track record on customer complaints, the age of their business, financial credibility, suspicions of phoenixing, and dozens of other metrics.

They would be given a score akin to a credit rating. Those with poor scores would be flagged on a database to ensure their practices were heavily scrutinised…

The reforms, while better than nothing, amount to shutting the gate long after the horse has already bolted.

Going by the ABS’ approvals data, around 200,000 high-rise apartments were built across NSW over the past decade, many of which likely contain faults.

The cost of rectification will be huge and will likely fall on both apartment owners and taxpayers alike, with most developers getting away scot-free.

The NSW Government is too late the hero and should never have allowed this situation to develop in the first place.

Perhaps we need a blitz on the politicians that allowed this mess to occur in the first place and have actively cheered on the boom?

Leith Van Onselen

Leith van Onselen is Chief Economist at the MB Fund and MB Super. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

SOURCE: https://www.macrobusiness.com.au/2020/01/nsw-moves-too-late-on-dodgy-high-rise-builders/

NSW Government proposes ratings scorecard for builders to prevent construction disasters

A high rise tower in the distance with a road in the foreground.

PHOTO: The Opal Tower saga has sparked questions about the building industry (AAP: Mick Tsikas)

HOW likely is it that a ratings scorecard for builders will be adequate to ensure any protection for home buyers/owners? To prevent construction disasters?

HOW will a scorecard cut it? Seriously … HOW much damage will have been inflicted on many very ‘unfortunate’ apartment buyers before a Scorecard is available?

WHY not rewrite Australia’s Building Codes?

WHY not implement the Lambert and Weir/Shergold Reports?

AND ensure a Clerk of Works is on the job on every project!

A CASE in point is the ongoing difficulties for the buyers of the ‘Sugarcube Apartments and Honeycomb Terraces’ … the City of Sydney refused to allow residents to occupy the 127 homes since their completion in April 2018 due to the site being contaminated!

At 6 January 2020 City of Sydney reported in its Update that:

 ‘We’ll continue to work with the developer until we’re satisfied it
has taken all necessary steps to ensure the site is suitable for purchasers to move in
.’

VIEW: UPDATE 6 January 2020: Sugarcube Apartments and Honeycomb Terraces

https://caanhousinginequalitywithaussieslockedout.com/2020/01/21/update-6-january-2020-sugarcube-apartments-and-honeycomb-terraces/

AND …

To restore public confidence in apartments, rewrite Australia’s Building Codes

https://caanhousinginequalitywithaussieslockedout.com/2019/12/08/to-restore-public-confidence-in-apartments-rewrite-australias-building-codes/

Michael Lambert lambasts NSW Government over Building Defects!

https://caanhousinginequalitywithaussieslockedout.com/2019/01/16/7150/

NSW Government proposes ratings scorecard for builders to prevent construction disasters

By Jessica Kidd

21 JANUARY 20202

RELATED STORY: New twist in Opal Tower saga as builder launches counter lawsuit

RELATED STORY: ‘Absolutely devastating’: Mascot Towers cracks getting bigger, report finds

RELATED STORY: How to avoid living in a ‘lemon’ — what you need to know before buying an apartment

RELATED STORY: What lies beneath the cracks in Opal Tower — and buildings across Australia

The NSW Government wants to introduce a range of measures to clamp down on dodgy developers and prevent a repeat of the Opal and Mascot towers cracking crises.

Key points:

  • As part of the proposal, builders would be rated on the quality of their previous work
  • People would be blocked from occupying buildings that are deemed dodgy
  • Sydney’s construction industry has been under the microscope since the Opal Tower and Mascot Towers were evacuated

The Minister for Better Regulation, Kevin Anderson, is proposing several reforms designed to revive faith in the building industry.

“There is a real lack of confidence in the NSW construction industry,” he said.

“We’re seeing people second-guess themselves when they do go to look at buying off the plan — they want to have confidence.”

He wants to introduce a risk rating system for builders, certifiers and developers that would score them on the quality of their previous projects to weed out the dodgy operators.

“At present … there is really nothing that sets anyone apart when you’re either doing a good job or a bad job,” he said.

“What we want to be able to do is set up a system to weed out those who do the wrong thing — those who cut corners, those who cut costs, those who sign contracts and then screw the contractors down whether it be on price or on quality.

An apartment block

PHOTO: The 132-unit Mascot Towers building was evacuated last June. (AAP: Bianca De Marchi)

Under the proposed reforms, the state’s Building Commissioner, David Chandler, would be able to examine any operator found to have a risky rating and would have the power to block a building’s occupation certificate if the project is deemed potentially dangerous.

Without an occupation certificate, a building cannot be occupied and a developer would be forced to refund deposits.

Labor’s spokeswoman for building reform, Yasmin Catley, said the proposed regulations do not go far enough.

“The bill looks to beef up enforcement, which of course is important, but that is not going to fix the problem,” she said.

“You need compliance, boots on the ground checking that critical building milestones have been built well.

“It is a shame that all the Government can bring to the table is a mechanism to rank builders.”

The proposed reforms would require the NSW Parliament to pass the Government’s Design and Building Practitioners Bill, which is currently being held up in the Upper House.

Mr Anderson said he hoped to get the bill passed when Parliament resumes this year.

SOURCE: https://www.abc.net.au/news/2020-01-21/nsw-government-proposes-new-construction-crackdown/11884852

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UPDATE 6 January 2020: Sugarcube Apartments and Honeycomb Terraces

City of Sydney NewsBusinessEnvironmentPlanning & buildingArts & cultureCity lifeBetter streets and spaces

THE CITY OF SYDNEY … CONCLUSION …

We’ll continue to work with the developer until we’re satisfied it
has taken all necessary steps to ensure the site is suitable for purchasers to move in.

For more information, contact the City on 02 9265 9333.Erskineville

Last updated 6 January 2020.

RELATED ARTICLE … ‘TOXIC SECRET KEPT FROM OWNERS OF ERSKINEVILLE UNITS

 / CAA4NSW / 

HOW likely is it that an ‘acceptable’ outcome will be achieved for the residents unless the City of Sydney persists with its strong stand?

More than a year has passed since completion and the developer has neither resolved nor addressed the contamination issues!

Read more …

https://caanhousinginequalitywithaussieslockedout.com/2019/07/19/toxic-secret-kept-from-owners-of-erskineville-units/

City of Sydney

 

 

 

An update on Sugarcube Apartments and Honeycomb Terraces

The latest information on the Erskineville development.

We approved the construction of Sugarcube Apartments and Honeycomb Terraces in the old Ashmore industrial precinct in Erskineville in September 2015.

This approval came with strict conditions, the developer, Golden Rain, had to follow before starting construction.

These conditions required the developer to remediate the site due to contaminated groundwater and the presence of heavy metals, hydrocarbons and asbestos.

The remediation had to be carried out in accordance with a remediation action plan approved by an independent site auditor.

We contend that the developer began construction without meeting all these conditions.

The developer also proposed a number of environmental management plans that would make the City of Sydney and future residents responsible for ongoing monitoring of the site.

How the City of Sydney responded

We met with Golden Rain on numerous occasions. This included a review of environmental data and discussions with the NSW Environment Protection Authority (EPA)-accredited site auditor.

On 20 August 2019, we wrote to Golden Rain and suggested:

  • environmental insurance be investigated to cover any future rehabilitation costs
  • revised environmental management plans for the terraces, apartments and public roads
  • modification of the existing development consent to incorporate the 3 revised environmental management plans
  • Golden Rain provide a clear strategy for maintenance of the vapour barrier system installed under the terraces to capture and divert vapours from the groundwater.

Further site testing

The EPA issued a letter to Golden Rain on 3 September 2019 advising of the potential migration of contaminated groundwater to neighbouring properties.

The EPA told the developer it needed further testing referred to as “flux-based groundwater assessments” to address this issue.

Golden Rain’s consultants prepared a report on 22 October 2019, which the site auditor reviewed on 26 October 2019.

The site auditor required numerous matters to be addressed in the report and for it to be revised and resubmitted by Golden Rain.

On 7 November 2019, Golden Rain advised us it was finalising the revised flux testing report for resubmission to the site auditor and EPA.

Golden Rain also advised it has carried out further work on the remediation action plan, the 3 environmental management plans and a strategy for the operation of the terrace vapour barrier system.

EPA response – December 2019

The EPA has advised that neighbouring properties and future occupiers of the site aren’t at risk, provided the contamination is managed on an ongoing basis by long-term environmental management plans.

The EPA also provided a report setting out the requirements that need to be considered as part of the environmental management plans to be adopted. On this basis, the EPA advised that it considers it unnecessary to regulate the site under the Contaminated Lands Management Act 1997 (“CLM Act”).

What happens next

Golden Rain updated the City on 20 December 2019 and indicated a path forward following the response from the EPA. Golden Rain advised us it intends to:

  • lodge a modification application in January 2020 to amend the terms of the development consent and voluntary planning agreement to permit the staged occupation of the site, starting with Sugarcube Apartments and followed by Honeycomb Terraces at a later time
  • provide an addendum to the remediation action plan for the site
  • provide an updated risk assessment for the Honeycomb Terraces
  • provide a strategy for a community title of the Honeycomb Terraces.

Golden Rain also provided us with an updated environmental management plan for the Sugarcube Apartments building.

We’re currently awaiting further documentation. It’s expected that the modification application will need to be publicly notified for a 2-week period.

Any approved environmental management plans will need to be listed as a positive covenant on land titles.

What the purchasers of these apartments can do

We understand this has been an incredibly frustrating experience for the purchasers of these units and terraces.

Purchasers are encouraged to seek their own legal advice if they’re concerned about the ongoing contamination issue.

We’re aiming for a solution that doesn’t negatively impact future residents and the public for many years to come.

We’ll continue to work with the developer until we’re satisfied it has taken all necessary steps to ensure the site is suitable for purchasers to move in.

For more information, contact the City on 02 9265 9333.Erskineville

Posted 20 August 2019. Last updated 6 January 2020.

SOURCE: https://news.cityofsydney.nsw.gov.au/articles/an-update-on-sugarcube-apartments-and-honeycomb-terraces

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‘Angry, depressed’: Owners in dire straits years after roof ripped off: Lidcombe

A development c/- a developer and a former Liberal politician, Ronney Oueik

The Lidcombe building owners are paying strata levies of up to $12,000 a year on average, up from about $3000, after they collectively took out a $2.5 million loan to repair the block, which suffered further water damage in June 2016 from another storm because it was still without a roof five months after it was torn

IT seems that ‘political donations’ may lead to a form of protection for the perpetrators of defective development … what a grubby business …

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AIG claimed the roof of the building, which was developed by controversial Auburn councillor Ronney Oueik, contained structural defects and the storm was not the cause.

Auburn Council approved the modifications in 2008.

Auburn Council takes legal action against its own councillor Ronney Oueik

https://www.smh.com.au/national/nsw/auburn-council-takes-legal-action-against-its-own-councillor-ronney-oueik-20160303-gn9ayp.html#ixzz431BOTgp0

“Former Auburn councillor and Mr Mehajer’s political nemesis Irene Simms said the financial pain may not be over yet.

“I have counted 19 court cases since the wedding,” she said.
Ms Simms is pushing for a state government inquiry into the council to tackle a major, state-government approved rezoning of the Auburn local government area.

The sweeping changes raised the height limits on buildings owned by Mr Mehajer and his council ally Ronney Oueik.

“This is where these two own all their properties and [the changes] were worth millions, possibly tens of millions,” Ms Simms said.

Salim Mehajer misses debt deadlines and mortgages family property

https://www.smh.com.au/national/nsw/salim-mehajer-misses-debt-deadlines-and-mortgages-family-property-20160324-gnq96y.html

CHOICE: Apartment Building Defects

https://caanhousinginequalitywithaussieslockedout.com/2019/01/23/7438/

‘Angry, depressed’: Owners in dire straits years after roof ripped off

Matt O'Sullivan
By Matt O’Sullivan

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Robin Son had planned to move out of his parents’ West Ryde home soon after he bought an apartment in a Lidcombe building in late 2014.

But ever since a storm ripped off the building’s roof in January 2016, causing millions of dollars in damages, the 34-year-old has been unable to afford to move with his wife into the two-bedroom apartment they poured their savings into.

Instead, they have been forced to rent it out so they can cover strata fees, which have soared five-fold to pay for the building’s repairs, and a large mortgage.

Robin Son, left, Mihi Chung and other owners of the Lidcombe apartment building.
Robin Son, left, Mihi Chung and other owners of the Lidcombe apartment building.CREDIT:EDWINA PICKLES

Their financial predicament is similar to other owners in the Water Street building. It was developed and constructed by a company whose director was Ronney Oueik, a property developer and former Liberal politician on the now defunct Auburn council.

“The government says there is nothing they can do; the builder says it’s not their fault; and the insurer says it is the builder’s fault,” Mr Son said.

“Thinking about it just makes me angry and depressed.”

The owners launched legal action more than a year ago against Mr Oueik, his company BBC Developments and Cumberland Council – the successor to Auburn council – under consumer law seeking more than $10 million in damages.

They claim there were defects in the roof and BBC and Mr Oueik, who was its director and the nominated supervisor of its contractor licence, knew the structural stability of the roof had not been considered in its design or during inspections or certification. The company is alleged to have not informed the owners of this when they purchased their apartments.

There is no suggestion of wrongdoing by Mr Oueik in his role on the council.

The roof of the Water Street apartment building was ripped off in a storm in January 2016.
The roof of the Water Street apartment building was ripped off in a storm in January 2016.CREDIT:JAMES ALCOCK

New legislation aimed at increasing protections for owners will be of little help to those in the Lidcombe building – if passed in its present form – due to exemptions.

While it will establish a duty of care between a builder and a purchaser, it will not apply to the owners because they have a legal case under way and their building – completed in September 2008 – is older than 10 years.

“There is no law that is on our side. This [Design and Building Practitioners] bill is a step in the right direction but these exemptions do not help,” said Phil Thai, an owner and chair of the building’s strata committee.

NSW Greens MP David Shoebridge said the Lidcombe owners predicament highlights inadequacies in changes to building laws proposed by the government to remedy the situation.

Mike Baird, at the time Premier, on the 2015 campaign trail in Auburn with the Liberal Party's then candidate Ronney Oueik, a former Auburn councillor.
Mike Baird, at the time Premier, on the 2015 campaign trail in Auburn with the Liberal Party’s then candidate Ronney Oueik, a former Auburn councillor.CREDIT:BRENDAN ESPOSITO

“Why would you protect some owners and not others. The protections should be provided for anything that has been built following this disastrous experiment with private certification,” he said.

The Lidcombe building owners are paying strata levies of up to $12,000 a year on average, up from about $3000, after they collectively took out a $2.5 million loan to repair the block, which suffered further water damage in June 2016 from another storm because it was still without a roof five months after it was torn off.

Owner Mihi Chung, 59, said she had planned to retire in five years but would now be forced to work longer. “It is too much stress. I cannot sleep sometimes,” she said. “Nobody is helping us.”

Another owner and church minister, Yeon Sil Ha, has taken on a second job as a cleaner to help pay about $3200 in strata fees.

RELATED ARTICLE

Workers survey and make temporary repairs to 14-22 Water Street, Lidcombe, in February.
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Insurer rejects storm-damaged Lidcombe apartment building claim because of numerous defects

But Better Regulation Minister Kevin Anderson accused Labor and the Greens of hijacking the Design and Building Practitioners Bill, which passed the lower house last year but not the upper house, by demanding “unrelated amendments”.

Cumberland Council said the matter was “inherited from the former Auburn council” and denied any liability in respect of the alleged loss. It declined to comment further.

Mr Oueik said he did not want to comment on the case because it was before the court.

Matt O’Sullivan

Matt O’Sullivan is City Editor at The Sydney Morning Herald.

Robin Son, left, Mihi Chung and other owners of the Lidcombe apartment building.

SOURCE: https://www.smh.com.au/national/nsw/angry-depressed-owners-in-dire-straits-years-after-roof-ripped-off-20200113-p53r1l.html

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Jordan Springs East: Lendlease will assist homeowners

UPDATE …

RELATED ARTICLE: NSW Government offers to help investigate sinking homes in Jordan Springs East

https://caanhousinginequalitywithaussieslockedout.com/2020/01/10/nsw-government-offers-to-help-investigate-sinking-homes-in-jordan-springs-east/?fbclid=IwAR0Yny-UyoyLaNkeeHQjXRxpGR-CsDqgKf3KWQGdfUXKGzIBS1NNZqKeBjw

Jordan Springs East: Lendlease will assist homeowners

Lendlease has come clean on the full scale of a sinking homes crisis affecting scores of residents at a housing development in Sydney’s west.

Joel Erickson, EXCLUSIVE, Penrith PressSubscriber only|January 18, 2020 7:00am

Cracks in the walls of a house near Armoury Rd, Jordan Springs East. Lendlease says the house is repairable, and the cracks shouldn't reappear.
Cracks in the walls of a house near Armoury Rd, Jordan Springs East. Lendlease says the house is repairable, and the cracks shouldn’t reappear.

The number of homes affected by ground settlement issues including sinking and cracking in a new housing estate has jumped to almost 40.

Developer Lendlease has revealed 38 houses near Armoury Rd have been affected by ground settlement issues in a parcel of land at Jordan Springs East. So far, three homes have been demolished or building halted while in the process of being completed.

Residents have reported at least one of the homes having a visible lean before it was knocked down.

The ground settlement – vertical movement of the ground – also caused a sinkhole in Armoury Rd which had to be blocked off for months to repair.

James Diamond and his young family moved into a house on Armoury Rd in December.

“We’ve got little cracks in our home already, which we wouldn’t have expected this quickly,” Mr Diamond said.

Cracks in the walls of a house near Armoury Rd, Jordan Springs East. Lendlease says the house is repairable, and the cracks shouldn't reappear.
Cracks in the walls of a house near Armoury Rd, Jordan Springs East. Lendlease says the house is repairable, and the cracks shouldn’t reappear.

“I still remember when someone mentioned the road sinking, so I came out and had a look.

“I noticed the single-storey house they demolished last month was on an angle – you could visibly see it listing.

“There was a bad sinkhole in the road as well. It felt like driving off a cliff – you almost lost your stomach.”

Navy Rd resident Sandeep Kumar has had issues with his driveway. Picture: Richard Dobson
Navy Rd resident Sandeep Kumar has had issues with his driveway. Picture: Richard Dobson
Dirt underneath Sandeep Kumar’s driveway has fallen a foot.
Dirt underneath Sandeep Kumar’s driveway has fallen a foot.

Navy Rd resident Sandeep Kumar, who lives nearby on Navy Rd, said the land in his frontyard had sunk more than a foot since he first moved into his home about 12 months ago.

He said Lendlease had checked for cracks inside his house, which they did not find, but didn’t address the sinking land under his driveway.

“I had to use two tonnes of soil just to fill the sinkage, and it’s not just me,” he said.

“The two houses up from me have similar problems.”

Lendlease’s senior development manager, Kevin Montier, said the company first became aware of ground settlement issues in April, 2018.

“There are 38 homes that have some evidence of issue,” he said. “It was evident that there were properties immediately adjacent to ground settlement at Armoury Rd.

“There were six properties there that we knew to be affected, including the one that was demolished recently and one that was immediately opposite it that was under construction.

“The builder chose to demolish that property while it was under construction, and there was another property adjacent that was also stopped by the builders.”

Lendlease has revealed 38 houses have been impacted by ground settlement in Jordan Springs East, including three that were demolished on Armoury Rd. Picture: AAP Image/Angelo Velardo.
Lendlease has revealed 38 houses have been impacted by ground settlement in Jordan Springs East, including three that were demolished on Armoury Rd. Picture: AAP Image/Angelo Velardo.

Mr Montier said the issues were exacerbated when a temporary detention basin rose due to a blockage at the end of 2018.

“Following the heavy rain events at the end of 2018 and early 2019, it brought to our attention there was some further movement due to the fact the basin was allowed to elevate in level,” he said.

“That’s been fixed, and we’re sure it’s not an ongoing issue and won’t repeat, but essentially that meant we took a proactive approach into looking at whether there were more properties affected.”

The empty lot on Armoury Rd, Jordan Springs East, where a house was demolished late last month. Armoury Rd is now open to traffic.
The empty lot on Armoury Rd, Jordan Springs East, where a house was demolished late last month. Armoury Rd is now open to traffic.

Works to fix Armoury Rd are now complete, and the road was reopened on January 17.

Mr Montier said Lendlease would offer a 15-year commitment to any homeowners affected by ground settlement including covering the cost of all repairs.

“It’s understandable that people are concerned,” he said.

“The key for us is the customer-first approach. We’re very mindful of how sensitive and personal this is, so we want to make sure we’re there standing by the customer.

“We need to be ensuring we’re covering all their costs as affected by ground settlement, and also making sure their safety is foremost.

“We want to make sure people are comfortable and that Jordan Springs East remains a great place to live.”

SOURCE: https://www.dailytelegraph.com.au/newslocal/penrith-press/jordan-springs-residents-fear-their-homes-could-be-sinking/news-story/36847d6b1cbf3b208d9eec9666cde75f

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