Private Buildings Concessional Loan Scheme

The concessional loan can be spent on a range of expenses. This may include:

• cost of undertaking eligible remediation works. For example:
  • materials
  • labour
  • project management
  • other professional services
• investigation and tender costs (up to $100,000)
• administration costs to assist the owners corporation to administer the loan (up to $10,000)
• fees associated with regulatory approvals.

The following remediation works may also be eligible for funding under the concessional loan:

• works necessary to remove cladding and/or replacing it with non-combustible material
• make-good works related to cladding remediation works. This includes:
  • retiling
  • reinstating landscaping
  • works on the external wall necessary for certification.

Works eligible for funding under the concessional loan will need to be agreed to by Infrastructure Canberra (iCBR).

The following expenses are not eligible expenses under the concessional loan:

• repairing pre-existing defects unrelated to combustible cladding
• works in the external wall related to windows
• additional improvement works not related to cladding remediation works.

Owners corporations transferring from a commercial loan will have the outstanding balance paid out by Lannock Strata Finance if approved.

Lannock Strata Finance is the Loan Administrator for the Private Buildings Concessional Loan Scheme.

The concessional loan cannot be used to cover any other expenses.

The assessment of eligibility will be completed by iCBR.

The application will be assessed to ensure:

• the building is eligible
• the application has been made by an appropriate representative
• all relevant documentation has been submitted with the application.

During the assessment process you may be contacted to provide further information.

A decision will be made by iCBR within 10 working days after all information has been received.

A participation deed will be provided by the ACT Government to owners corporations that are found to be eligible. The deed must be signed and returned to iCBR. Application details will be provided to the Loan Administrator when the signed deed is received.

More information about assessment of eligibility is available in the Concessional Loan Application and Assessment Guidelines (PDF).

The financial assessment will be completed by Lannock Strata Finance.

Lannock Strata Finance are the Loan Administrator for the Private Buildings Concessional Loan Scheme.

You will be contacted directly to commence the loan application process. Lannock Strata Finance will:

• review your application
• perform financial and credit checks
• complete standard loan approvals.

Your application is approved

The owners corporation must enter into a loan contract agreement with Lannock Strata Finance if they choose to proceed.

Your application is not approved

The owners corporation will be advised of the decision and why the loan was not approved. This decision is final and is not open to appeal.

More information about assessment of eligibility is available in the Concessional Loan Application and Assessment Guidelines (PDF).

The owners corporation will need to complete the investigation and tender process after their loan has been approved. The concessional loan can be used to fund up to $100,000 to fund the investigation and tender process. This process is split into two steps:

1. Commission a site investigation to identify the scope of works required in the external wall.
2. Conduct a tender process to engage a suitable builder to complete the eligible works.

In step 1, you will receive a report identifying the scope of works. In step 2, this report must be included in the documentation that is supplied to builders submitting tenders to complete the eligible works.

Owners corporations who participated in the Private Buildings Testing and Assessment Scheme or are transferring across from a commercial loan may not need to complete this step.

You will need to confirm your specific requirements prior to determining the final loan amount.

Owners corporations participating in the Private Buildings Concessional Loan Scheme must use suppliers that are included in the Register of Suppliers. This includes:

• project managers
• builders, architects
• façade engineers
• structural engineers
• building surveyors.

The register lists service providers who have qualifications, experience, licences and insurances relevant to cladding work in the ACT. Suppliers must comply with a range of minimum requirements to be included on the register. This includes:

• meeting minimum qualifications requirements
• maintaining appropriate licences
• retaining insurances to cover their work.

Inclusion on the register does not mean that the business has received endorsement by the ACT Government.

Access the register of suppliers

Using suppliers on the register

• Owners corporations must assess whether a supplier is suitable for their project and represents value for money.
• Project managers are recommended for all projects and are a requirement for all projects worth more than $1 million.

Using suppliers not on the register

• Concessional loan funds cannot be used to pay for suppliers that are not on the register or not eligible to join the register.
• Unregistered suppliers are unable to be paid with concessional loan funds where they:
  • apply to join the register; and
  • are assessed as not eligible to join by iCBR.
• Owners corporations and project managers should seek the express agreement of the ACT Government before engaging a supplier that is not on the register.

The following must be completed before signing a contract with your preferred builder.

After the investigation and tender process the owners corporation will receive the following documents:

• a quote accepted by the owners corporation to complete eligible works
• a report specifying the final scope of works.

Both documents need to be submitted for assessment by iCBR.

This will ensure that only eligible works are completed under the loan.

Lannock Strata Finance will finalise the concessional loan amount using the quote accepted by the owners corporation.

Owners corporations will need to obtain a Building approval before cladding remediation works commence.

If other works are being completed in addition to cladding remediation works, you may require further approvals.

More information may be available on the Build or renovate page.