Tuesday, 23 May 2023

Petitions

Home building industry

Richard RIORDAN (Polwarth) presented a petition bearing 305 signatures:

This petition of residents in Victoria draws to the attention of the Legislative Assembly the financial hardship of the Porter Davis victims left in financial distress after the builder’s liquidation. More than 1700 families have been impacted in Victoria after having saved for years to afford their first or dream home. The Victorian Government has acknowledged the housing crisis in Australia and has committed to increase housing supply as a matter of Victorian interest and to reduce homelessness. It is now clear that VMIA’s insurance payout will be insufficient for those who are in mid-construction. The banks have continued business as usual with very limited support towards affected victims. First home buyers cannot secure further funds due to FHBG capped building contracts terms and with reduced borrowing capacity arising from higher interest rates. Owner builder options are unavailable because banks require large amount of self-funds which is unattainable. Without your help, many of us will not be able to finish our homes and will possibly force us into bankruptcy or even homelessness – the opposite of the Victorian Government’s housing plan.

The petitioners therefore request that the Legislative Assembly:

• waive FHBG building contract caps requiring homes to be valued under a certain threshold to be eligible – this will allow banks to revalue land and homes at the current price;

• introduce the Victorian Home Rescue package – a state funded guarantee scheme available to victims experiencing financial hardship following liquidation of construction companies. The scheme will provide funding for the completion of homes in exchange for a percentage stake that can be repaid over the term of the loan/within a time frame. This will ensure that homeowners can move into their homes without being further affected financially and will give them a chance to settle financially before repaying the scheme.

Ordered that petition be considered tomorrow on motion of Cindy McLeish.