Presentation prepared for the CERA Community Forum. 6 June 2013

This presentation is purely my personal assessment of the Christchurch recoveryas of 6 June 2013. Based on available information and information acquired under OIA

Please note: page 14 added after the presentation took place. Hugo Kristinsson

Member of:South Brighton Resident’s Association, TC3 Residents, associate of CanCern.

This presentation is not a Christchurch City Council or CERA document.

Thank you for the opportunity to speak at this Forum.• I have been looking at the bigger picture of the Christchurch recovery for the past year.The following presentation is a summary of some of my findings • Or should I say community concerns?

Thousands of people are at a grave risk of loosing equity in their homes.

http://www.facebook.com/groups/TC3Residents/

TC3 ResidentsT O G E T H E R W E A R E S T R O N G E R

http://www.facebook.com/groups/TC3Residents/

TC3 ResidentsT O G E T H E R W E A R E S T R O N G E R

Residents of Christchurch pay Rates and Taxes. Rates and Taxes are charged so Council and Government can provide the basic services that every country/city needs. Transport, Water, Rubbish collection, Flood protection, Social services, Building authority etc...The Building Act 2004 is there for Consumer Protection.Because we are charged Rates and Taxes, we are entitled to these services and can not be denied them.

We had a disaster here, fortunately we have been paying insurance for many years and our houses will therefore be repaired/replaced at least to the standards/value they were before the earthquakes.

In December 2012 CERA published the TC3 Residential Rebuild Booklet.

There it states on page 17.

Home owners should note the fact that most insurance policies in place at the time of the earthquakes will cover the cost of building consent requirements to raise finished floor levels to meetstandards set in the Building Act.

Insurers will continue to work productively with the Council, EQC and other agencies to provide best outcomes for policy holders.EQC and Insurers are working to prioritise the claims of vulnerable groups in the community.

If we look at the situation and consider what commitment the Government and other agencies appear to making, this does not look that bad on the face of it.

Full insurance cover and assurance undersigned by the Government that THEY will make sure we will get the best outcome. Seems to instill confidence.

EQC Land Communications to residentsversus Official Information Act

Statement from Tonkin & Taylor. Looking at the LiDAR change in elevation map, we can see that in the part of South New Brighton between Falcon St and Seafield Place the ground subsidence is generally between 100mm and 400mm, with a few properties showing up to 500mm of subsidence. So in this part of the sub-urb, the ground subsidence is clearly much greater than most of the rest of South New Brighton. Of the 10% of properties in South New Brighton with more than 250mm subsidence (about 140 properties), it looks like most of them are located within the areas around the west end of Bridge St and the south end of Estuary Rd.

10% of the worst damage has been excluded from the Stage 3 Land report.Resulting in misleading communica-tions to the residents.

Average subsidence 50mm = 140 properties subsided 250-1000mm

Average ground elevation 2.2m =140 properties below higest tide.

We are provided with Land Reports that are encouraging, Minimal or hardly any land damage. • However the Stage 3 Land Reports issued in July 2012 stated the following. • South Brighton Average land Subsidence 50mm • I started asking questions, they were even asked at Parliament. • No information was provided.• Eight months later i finally got a written reply from Tonkin and Taylor. • Then I asked SCIRT for information under the Official Information Act.• This information confirmed that 140 properties in the area had subsided in excess of 250mm and from this image it looks like some have subsided over a meter. •Significant lateral displacement, several meters and the area is likely to subside another 150 to 400mm if we have a sizable earthquake. (SLS ULS

Statistics) • Latest GNS predictions for the next 12 months state 25% probability of an earthquake between 5.5 – 5.9.

Land issues, Cabinet minutes for the Land Zoning via OIA

4.12 noted that in some of the remaining Orange areas (Southshore West, RichmondSouth, parts of Central City- River South, Linwood, Avonside and Wainoni)engineeting advice indicates that area-wide land remediation is the only practicaloption for retuning some or all of the land to a buildable state;

4.14 noted that the Minister for Canterbury Earthquake Recovery has directed theCanterbury Earthquake Recovery Authority to hold exploratory discussions withChristchurch City Council, Environment Canterbury and EQC on options forundertaking area-wide land treatment works in the areas noted in paragraph 4.12above;

4.15 directed officials from the Canterbury Earthquake Recovery Authotity, inconsultation with the Treasury, Department of the Prime Minister and Cabinet, andthe Department of Building and Housing, to report back to Cabinet on 20 February2012 on the outcomes of the discussions noted in paragraph 4.14 above and to adviseon what roles the Crown should play in facilitating area-wide remediation works;

The seriousness of the situation is that while all the land damage information exists

residents are not allowed access to this informationwhile insurance companies and EQC are pushing people

to cash settle based on repair cost.

If the land can not be repaired the house should be written off or relocated.

I have been provided Cabinet minutes on the Zoning Decisions under OIA, • But reading the minutes just bring up more questions. • I have requested some answers. We might get an explanation of Area Wide remediation and land strengthening from CERA later. • The seriousness

of the situation is that while • all the land damage information exist. • Residents are not allowed access to these information. • While insurance companies and EQC are pushing people • to cash settle based on repair cost. • If the land cannot be repaired the house should be written off or relocated. •

On 16 February 2011 Local Government New Zealand

held a seminar on natural hazards risk management.

These slides are from the EQC presentation

I borrowed this from a presentation by EQC to explain how they look at the problem. • You see the risk environment. • This is where EQC is considering how to handle risk, • Accept it or TRANSFER or SHARE it. • They also look at the SYSTEMATIC ISSUES •

Core of the system is the Building Control Officers. That is our Council • We the community groups are on the edge. • EQC also mention two important issues communications and ACCOUNTABILITY

PMO GuidesBased on DBH Guides, more flexible.

Loose guides that do not require inspections.No liability taken, no guarantees.

All liability and risk with the property owner.

NZ Building Act 2004Strict regulations for Consumer Protection

Protects the residents and gives full guarantee and liabilty if anything fails. All safety checks

and inspections in place. Code of compliance.

Talking about ACCOUNTABILITY • The PMO Guides are more flexible than the DBH Guidelines. • All Project Management Offices and Insurance companies have been provided this document as a guide. • This document lacks all Accountability, and there is a statement on it where CERA, MBIE and Council deny any liability of it. • This document breaches the law in New Zealand, in Particular

the Building Act. • It gives the consumer no Guarantee around safety, durability, or the land strength. • The Building Act is a part of the consumer protection we are entitled to by law. • This Law ensures we get a guarantee that our houses are safe and durable. • The building act also ensures people are not allowed to build on unsafe land. • It might be worth mentioning that a recent

High Court case determined that the DBH Guides have president over the Building Act regarding to our claims

Council approach to avoiding the liability

Updated: 23 October 2012

P-009

1 of 3

This form is to be used for an application under Section 139A of the Resource Management Act 1991 where an applicant

seeks certification that a particular land use has existing use rights pursuant to Section 10 of the Resource Management

Act 1991. It must be accompanied by the minimum application fee of $1,000 together with plans, a certificate of title and

other supporting information. Was there any pre-application advice/discussion prior to this application being made? Yes No

If Yes, what was the Planner’s Name? ..................................................................................................................................................

Has a copy of the application been submitted electronically, i.e. on a flash drive or disk?

(Note: Providing an electronic copy can reduce the overall administration costs associated with the application) Yes No

How would you like your approved certificate sent to you? Email Disk

Resource Consents and Building Policy Unit Application for anExisting Use Certificate Resource Management Act 1991 - s.139A Submit your application online at: onlineservices.ccc.govt.nz; or Email to: resourceconsentapplications@ccc.govt.nz; or Send to: Christchurch City Council, PO Box 73013, Christchurch Mail Centre, Christchurch 8154; or

Deliver to: Christchurch City Council, 53 Hereford Street, Christchurch. For enquiries phone: (03) 941 8999

2. The Site Location of the existing use (street address): ............................................................................................................................................

...................................................................................................................................................................................................................

3. The Applicant

1. About this Form

Legal description of application site (please include a current Certificate of Title): ....................................................................................

....................................................................................................................................................................................................................

Landline: ................................................................................... Email: ....................................................................................... Postal Address: ..................................................................................................................................................... Post Code: ................

Signature of Applicant: (Or person authorised to sign on behalf of Applicant) Signature:.................................................................................. Date: .........................................................................................

Name of person signing (if signed on behalf of the Applicant): .................................................................................................................

(Note: The Applicant is responsible to the Council for all costs associated with this application)

4. The Agent Name of Agent (include the contact person’s name if a company, trust or similar): ..................................................................................

..................................................................................................................................................................................................................

Landline:.................................................................................... Email: ....................................................................................... Postal Address: ..................................................................................................................................................... Post Code: ................

Mobile:....................................................................................... Facsimile Number: ...................................................................

Mobile: ...................................................................................... Facsimile Number: ...................................................................

Applicant’s Name: ....................................................................................................................................................................................

Form B-004

Building Operations Unit

Application for an exemptionfrom building consent Building Act 2004 - Schedule 1, paragraph (k)

For Office UseApplication no:

Date received:

1. About this form

Please check that the forms that you are using are current at the time of application as they are subject to change without notice.

General information can be found on our website at www.ccc.govt.nz/homeliving/buildingplanning/index.aspx

A building consent exemption under schedule 1(k) of the Building Act 2004 is the formal approval issued by a Territorial Authority confirming a building consent is not required for the intended building works.

2. The applicant

Is this application earthquake related? Yes No

If yes, is it coordinated by an insurance company via a project management organisation (PMO), e.g. Hawkins, Arrow, Fletchers, etc? Yes No Earthquake

related work

If yes, name of PMO:

Name of Owner: ....................................................................................................................................................................................... [Include preferred title, e.g. Mr, Ms, Mrs, Miss if an individual.]

Owner’s Postal Address: ..........................................................................................................................................................................

.................................................................................................................................................................................................................

Email: ...................................................................................................................................................................................................

Phone Number: ....................................................................... Mobile: .........................................................................................

Name of Contact Person: ........................................................................................................................................................................ [If different from the owner, or if the owner is a company, trust, or similar.]

Contact Person’s Postal Address: [Must be a New Zealand address.] ................................................................................................................

.................................................................................................................................................................................................................

Email: .....................................................................................................................................................................................................

Phone Number: ....................................................................... Mobile: .........................................................................................

My preferred method of written communication is: Email Post (A copy for any request or further information relating to the building exemption will also be sent to the owner.)

3. Location of proposed work

Street address: [Include Level and Unit No.] .....................................................................................................................................................

Legal description of land where building is located: Lot No:................................................. DP: .......................................................

Lawfully established use: [From Clause A1 Classified Uses of the New Zealand Building Code.] ………………………………………………………………….. ...........

Year first constructed: [Insert year – an approximate date is acceptable, e.g. 1920s or 1960-1970.] …………………………………………………………………………..

LU:23.10.12, LR:23.10.12, v1 1 of 3 Form B-004

Form B-014

Building Operations Unit

Withdrawal request of aproject information memorandum (PIM)and/or building consent application

LU:23.10.12, LR:23.10.12, v1 Form B-014 1 of 3

For Office UseDate received:

A project information memorandum (PIM) is a report issued by the Council prior to or in conjunction with a building consent. A PIM report provides information known to the Council which is relevant to your building proposal.

1. About this form

Please check that the forms that you are using are current at the time of application as they are subject to change without notice. General information can be found on our website at www.ccc.govt.nz/homeliving/buildingplanning/index.aspx A building consent is the formal approval issued by a Building Consent Authority (BCA) to ensure certain works meet the

requirements of the Building Act 2004, Building Regulations and New Zealand Building Code.

2. The building

Is this application earthquake related? Yes No

If yes, is it coordinated by an insurance company via a project management organisation (PMO), e.g. Hawkins, Arrow, Fletchers, etc? Yes NoEarthquake

related work

If yes, name of PMO:

Project number: ......................................................................................................................

Street address of building:........................................................................................................................................................................

Legal description of land where building is located: Lot No:................................................. DP:...........................................................

Other: .......................................................................................................................................................................................................

3. The owner (as defined by the Building Act 2004)

Full name(s): ............................................................................................................................................................................................

Contact person:........................................................................................................................................................................................

Address: Street no./name: ......................................................................................................................................................................

Suburb:........................................................ City:................................................................ Post code:............................

Postal: Same as above

Box / Street name:...................................................................................................................................................................

Suburb/Lobby: ............................................. City:................................................................ Post code:............................

Phone numbers: Daytime: ........................................................................... Mobile: ............................................................................

After hours:....................................................................... Fax: .................................................................................

Email: .......................................................................................................................................................................................................

Bank account details (required):...............................................................................................................................................................

.................................................................................................................................................................................................................

If the ownership has changed since the application was made, new evidence of ownership will need to be provided, i.e. Certificate of Title.

Christchurch City Council is our Building Authority. It is in place to protect their ratepayers from substandard building practices.

We pay rates and are entitled to this service as a community.

If the forms above are used for repairsthe consenting process can be avoided.

As a result all liability is transferred to the property owner. No Consumer Protection - high risk of substandard repairs.

Information for Homeowners & Building Practitioners:

Building work that does not

require a building consent

This document sets out Christchurch City Council’s policies

on what will be exempt from the requirement to obtain a

building consent under Schedule 1(k) of the Building Act. It

is additional to building work that is already exempt under

Schedule 1 (a) – (n).

This document should be read in conjunction with other

information that is available on exempt work. This can be

viewed from the following websites:

• InformationforHomeownersorBu

ildingPractitioners

(http://resources.ccc.govt.nz/files/CDEM/

InfoForHomeownersOrBuildingPractiti

oners.pdf).

Pleasenotethatalthoughtherepairor

replacementofa

chimney or flue is exempt from building consent, it should

still be carried out by an approved installer. A separate

document is available on this.

• AguidetoSchedule1(http://www.building.dbh.govt.nz/

bc-no-consent).

Schedule 1 of the Building Act 2004 paragraph (k) allows

the Council to exempt work from the requirement to obtain

building consent where it is satisfied that:

1) The building work is unlikely to be carried out other than in

accordance with the Building Code or

2) If carried out other than in accordance with the Building

Code is unlikely to endanger people or any building,

whether on the same land or any other property.

IMPORTANT NOTE: ALL building work (whether subject to

consent or not) is required to comply with the Building Act,

Building Code and all other laws, including:

• ResourceManagementAct1991-Yo

ushouldconsultwith

CouncilPlannersespeciallywhereyou

haveaHeritage

or Character building, or there may be an effect on

neighbours.

• PlumbersGasfitters&DrainlayersA

ct2006.

• ElectricityAct1992.

• FireServiceAct1975.

• HazardousSubstances&NewOrga

nismsAct1996.

The responsibility for complying with all requirements remains

with the owner and those people carrying out the work. If in

doubt engage the services of a competent building professional

or practitioner to step you through the regulatory system.

Youmayalsoprovideinformationtothe

Councilwithregard

to work that you have carried out, which will be placed on the

file for your property. This will be recorded on any future Land

Information Memorandum (LIM) as being work carried out

under exemption that has not been checked by the Council.

This may prove beneficial when you come to sell your home or

building in future.

Repairs without building consent

If you are doing repairs without a building consent we advise

you to seek professional advice and keep records of the work

done and who carried out the work. This will assist when

you come to sell your home in the future, as purchasers are

likely to have questions about the damage caused by the

earthquake, who repaired it and if it was done properly.

• Getexpertadvice.

• Useaskilledandprofessionalbuild

ingpractitioner.

• Getseveralquotesfortheworkand

askforreferences.

• Keeprecordsoftheworkdone(e.g.

photos)andwhodidit.

• ConsultwithyourinsurerandEQC.

Sections A to E cover work that can be carried out without

involving the Council.

Section A:DIYBuildingWork-Workthatcanbe

completedby

any person.

Section B: DrainlayersWork-Workthatcanbec

arriedoutbya

Certified Drainlayer.

Form B-390

[Specific only to Christchurch City Council and beyond that already covered by Schedule 1 of the Building Act]

The transfer of risk and liability for your insurance claim

The PMO/EQR approach allows repairs so flexible that they may breach the Building Act.

All the risk and liability is passed onto the property owner and the repairs can be substandard. The value of your home can be significantly reduced.

Current situation What is on offer Your entitlementWhy should you accept what is offered?

AFTER DAMAGEYou have an insurance claim

YOUInsurance Claim

Risk-Insurance Company

Liability-Council

Risk-Insurance Company

Liability-Council

PMO UNCONSENTEDCan breach the Building Act

Limited or no guarantee

Substandard property

Property owner-Risk

Property owner-Liability

COUNCIL CONSENTED50 year guarantee on foundations

Consumer Protection

INSURANCE /COUNCIL YOUIC / COUNCIL YOUIC / COUNCILFully restored property 33

3 33

3

3 3 3

Unsustainable practices = grave threat to our futureHere we see of how the risk is managed, and the liability handled. • Before the earthquakes, you did not have the risk and the liability. •

You had a certified Building and purchased insurance, that took care of your risk.. • Our entitlement is that the risk and the liability is handled by insurer and council. • The PMO Guides push all this liability and risk onto the residents. • Residents should not accept this liability and risk •

Unsustainable practices = grave threat to our future. • This line is from an EQC presentation. • I thought it fitted here so perfectly

What is being proposed here?Before the Earthquakes we had properties that were of a good value.

Houses built 1970 and later were required to have floor levels at 11.5m

This example is from the Flood Management Area around the estuary.

Type B house timber floor withPerimeter footing

Ground water 80cm

September 2010

Land Levels 11,2m

Floor Levels 11,5m

EarthquakesThe land shook.

Land where groundwater is high liquefied.The land subsided.

Houses tilted and some sunk.Some cracked.

These houses will be repaired or rebuilt by Insurance companies or the Project Management Office = Fletchers EQR

Type B house timber floor withPerimeter footing

Ground water 20cm

May 2013

Land Levels 10,6m 49% of piles need replacements

Floor Levels 10,9m Land Subsidence 60cm

PMO GuidesBuilding Consent NO Geotech Drilling NO

Groundwater Checked NO Land strength Checked NO

Structural Engineers report NOLand remediation NO

Building inspection NOCheck for Hazard Notices NO

Liability if failure OWNER

Type B house

Ground water 20cm

May 2015

Land Levels 10,6m

49% of piles replaced

Floor Levels 10,9m

No Land remediation

Type B house

Ground water 100cm

Land Levels 11,4m

New foundationsFloor Levels 11,8m

Land remediationSurface structure

Building Act 2004, repairCouncil consented plans YES

Geotech Drilling YESGroundwater Checked YES Land strength Checked YES

Structural Engineers report YESSurface Structure required YES

Consented Foundations according to land conditions YESProgressive building inspection on all important issues YES

Councils liability as per leaky house syndrome YESCouncil confirmed no Hazard notices YES

Liability if failure COUNCIL

Changes on the Horizon Ecan has published a new approach to managing

Canterbury’s Floodplains in February 2013

Over the last 20 years there has been an increased realisation worldwide that full reliance on structural measures,

such as stop- banks, to prevent flood damages is unrealistic and not cost effective. The emphasis now is to find a balance between

measures that keep floodwaters away from people and those that keep people away from floodwaters.

Flood Protection & Drainage Bylaw 2013 are being updated and Council states acceptable inundation will be 40cm.

Type B house

Ground water 20cm

May 2016

Land Levels 10,6m

49% of piles replaced

Floor Levels 10,9m

No Land remediation

Type B house

Ground water 100cm

Land Levels 11,4m

New FoundationsFloor Levels 11,8m

Land remediationSurface structure

CCC Acceptable inundation 40cm

A D D W A T E R

PMO Guides Repair As repairs were unconsented the owner has all the liability.After one or two flood events insurance companies will refuse flood insurance.Council can at any stage issue a Hazard Notice reducing the value of the property.EQC can deny liability in case of further events.Subject to a Hazard Notice

2026

Type B house

Worst case scenario

Type B house

F U T U R E E V E N T SIf we have future events here, land subsidence, earthquakes or flooding

a consented repair will have full insurance cover by EQC and Insurance Company.A property that has a Hazard Notice is unlikely to have any insurance cover.

A property repaired on a weak land can be refused cover for subsidence.After repeated flooding Insurance Companies can refuse insurance cover.

Your bank can forfeit your mortgage.

Water will always find its way through sand. If land subsides close to water, groundwater rises and land bearing capacity decreases.

Higher groundwater increases risk of Liquefaction.

No insuranceOwners loss

EQC and insurance company liable

Compliance Refusal after 24 months?Frequently asked questions1. Why is the Christchurch City Council sending out letters about building consents and Code Compliance Certificate?To support the rebuild we are constantly looking at how we can help our customers, in this case – how to complete the building consent process. We identified the need to advise some customers that the Council has no record of a Code Compliance Certificate for their building works.We want to work with you to either update the Council’s records or advise you of what action you can take to complete the building consent process.This is crucial because a Code Compliance Certificate will give documented assurance to you and potential future buyers of your property that you have complied with the Building Code. It also shows that you have completed all the required steps around safety.

2. What will happen if I do not take any action?The Council will do nothing further, but it will show in our system that Code Compliance Certification was refused.This will also show on your Land Information (LIM) report. You need to be confident in your own mind that you arecomfortable with your decision not to apply for a Code Compliance Certificate. We recommend you consider anylegal implications and talk with your insurer.

16. I am the new owner of the house. Is it my responsibility to apply for a Code Compliance Certificate?Yes, the Building Act 2004 states that it is the building owner’s responsibility to apply for a Code ComplianceCertificate. You also want to keep the equity in your building (for future property sales), so let’s work together to getthe Code Compliance Certificate if we can.

17. I was acting as ‘agent’ for the owner and I no longer have any involvement in this building consent or the code compliance application, what should I do?We will contact the current owner. You don’t need to do anything further.

What can happen if your ground bearing, foundations or something else is not up to code? As your property may not have a Code of Compliance Certificate after a PMO repair, or if you cash settle your claim.

The letter above can be expected, from Council. The property owner will bear the cost.

Please note: this page was added after the presentation took place.

We are asking for the following.

1. Immediate replacement of the PMO Guides with the Building Act 2004. 2. Full disclosure of actual land damage in Christchurch.

In Conclusion

1. Thousands of people are at grave risk of loosing equity in their homes. 2. The PMO Guide is the tool used to transfer all Risk and Liability onto residents. 3. The Building Act 2004 is the LAW in New Zealand and should be the only “guide” used for the recovery. 4. The public should have full access to their land information.

Thank you for reading this presentation.

Please share this document for the future of Christhurch

For more information on this and other related issues

www.chchsolddowntheriver.co.nz (soon to come)