"This is heartening and should provide more certainty by allowing a longer timeframe. This is especially relevant for us in terms of upgrading buildings in the inner-city where developers have perhaps been tentative about doing upgrades."
About 1400 Rotorua buildings have so far been identified as potentially earthquake prone.
Mrs Chadwick said it made "absolute sense to take into account the different seismic risk levels around New Zealand".
"We're still awaiting the detail but it's very pleasing the Government has taken on board feedback and has come up with something that balances public safety with costs, practicalities and the likelihood of an earthquake happening.
"Changes to the compliance periods will also make a big difference for building owners as timeframes can have a major impact on costs."
She said the financial impact of the previous regime was a challenge for building owners, including councils, and a key impact of these changes was expected to be major cost savings due to the change in timeframes.
Rotorua MP Todd McClay said the new policies would be welcome news for many Rotorua building owners who faced significant and in some cases unnecessary costs.
"These changes will save local people a lot of money on expensive assessments and strengthening.
"This more targeted approach, removing some buildings and prioritising schools and emergency buildings, reduces the overall cost for building owners nationwide from $1.36 billion to $777 million," Mr McClay said.
"The changes will mean a more rational approach to seismic strengthening, where buildings in high-risk areas are assessed and strengthened first."
The policy changes will be included in amendments to the Building Act and to future regulations.
Key Changes
* New Zealand categorised into risk zones - high, medium and low
* Buildings in high-risk areas must be assessed within five years and strengthened within 15, medium areas assessed within 10 years and strengthened within 25, low-risk areas
assessed within 15 years and strengthened within 35 years.
* Education and emergency buildings in high and medium risk areas to be identified and strengthened in half the standard time.
* Reducing the scope of the buildings requiring assessment to those that pose the greatest risk.