After the buyout of storm damaged homes, Auckland Council is beginning the process of removing hundreds of properties. Video / Alex Burton
Auckland’s $2 billion storm recovery fund faces pressure as the cost of Category 3 buyouts rises.
The council may need to purchase up to 1264 homes for about $1.28 billion.
Shifting funds for buyouts could leave $164 million for storm resilience work and $53 million for a project already under way in Māngere.
Auckland’s $2 billion storm recovery fund is under pressure with new figures showing the number and cost of Category 3 homes qualifying for a buyout has risen sharply.
The scheme allowed for 900 homes to qualify for a buyout, but a new report shows the figure could reach 1264, costing an extra $388 million.
Shifting the extra cost within the fund could leave the council with less money to spend on flood resilience, including a programme to reopen natural waterways in place of pipes to reduce the impact of future storms.
The latest figures are contained in a report to Thursday’s transport, resilience and infrastructure committee meeting.
The Auckland floods last year damaged more than 7000 homes. Photo / Alex Burton
“At the highest current forecast, the Category 3 voluntary buy-out scheme will result in the council purchasing up to 1264 sites at a cost of around $1.28 billion,” the report, written by senior recovery office staff, said.
Revised forecasts show of the 3500 properties that opted into the scheme now closed, the council envisages between 1205 and 1264 will be eligible for a voluntary buy-out.
“Now that registrations have closed and we’ve done extensive engineering and modelling assessments for over 3000 homes, the risk to life is more widespread than we expected, and more properties are meeting the threshold for a Category 3 buy-out. We know the reality of this risk has also surprised a lot of homeowners,” council group recovery manager Mace Ward said.
Nearly two years after Auckland’sdevastating floods badly damaged more than 7000 properties, the council has already paid out an average of about $1m to more than 300 homeowners who meet the Category 3 criteria of “an intolerable risk to life” due to a lack of an escape route in a future storm.
Debbie Benioni has had to leave her Mangere home of 19 years and lost nearly all her possessions in the Anniversary weekend floods. Photo / Jason Oxenham
Council officers said the council needs Government approval to revise the budgets in the joint $2b storm recovery fund, which currently provides for 900 Category 3 properties. The shortfall could be met by reallocating funds within the total package.
Ward said the funding available to address the risk is a one-off, limited response to the exceptional circumstances of last year’s storms, saying there is essential work under way on a national climate adaptation plan for future events.
The Government has said there will be no additional funding.
Officers said shifting funding for Category 3 buyouts could leave $164m for storm resilience work, plus $53m already committed for a project in Māngere to reduce the flood risk of 244 properties.
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