Government Response to Extreme Weather Events

June 2023

Risk framework
The Government has announced a framework for managing properties affected by the extreme weather events in early 2023.

This involves making risk assessments of properties that may be considered high risk in future events.

The risk framework has three main categories:

• Category 1: Low Risk – Repair to previous state is all that is required to manage future severe weather event risk and the home can be rebuilt at the same site.

• Category 2: Managed Risk – Community or property-level interventions will manage future severe weather event risk. This could include improving drainage or raising the property.

• Category 3: High Risk – Areas in the high risk category are not safe to live in because of the unacceptable risk of future flooding or landslides and loss of life. Homes in these areas should not be rebuilt on their current sites.

Councils have written to owners of properties that are within the risk framework, but it will take some time for them to complete the risk assessments.

Risk categories
The Government has provided more detailed descriptions of the risk categories, as follows [1]:

The risk categorisation is different to the council issued red, yellow or white placards (“stickers”). The colour of the placards will be a useful starting point for risk categories, but it will not determine which risk category a property is put into.

Category 2 and 3 properties
The Government is to provide funding to councils in respect of properties classed as Category 2 or 3. The funding will be used as follows:

• Category 2 properties: the funding will be used for building flood protection and other resilience measures.

• Category 3 properties: the funding will be used for voluntary buyouts.

The Government is to formulate an approach to the valuation and funding of voluntary buyouts in the coming weeks.

Advice
Grimshaw & Co is available to provide advice to property owners who are affected by the extreme weather events, and property owners within the Government risk framework.

Feel free to contact us today.

[1] https://www.beehive.govt.nz/release/update-assessment-affected-properties-post-cyclone-and-flooding