Simon Mumford
03 April 2023, 11:10 PM
The Resilient Homes and the Resilient Lands Programs are about to ramp up during the next three months as the Northern Rivers Reconstruction Corporation (NRRC) tries to meet its goals that were set at the end of 2022.
This would mean that all 5,901 active program registrations would know their future in terms of a house buyback, a house raising or a retrofit by the end of June. The Resilient Lands Program may be a month later (end of July) before decisions are finalised with construction to begin about October, however, we will know what land has been identified and where at the end of April or early May as a strategic document goes on display for public comment.
The biggest change in the life of CEO David Witherdin and his team has been the change of state government a week and a half ago.
The Lismore App had its regular chat with Mr Witherdin to get the latest news including what changes he is expecting from a Chris Minn's led Labor Government.
"Well, I don't expect there'll be any reduction in focus at all. There's been bipartisan support right from the get-go on this from the state and commonwealth governments and from local MPs. Most importantly, we've seen the government come out and request an early briefing on the Northern Rivers because it is one of their priorities. So, I don't see any downside risk there."
One of the strongest criticisms from all levels of government has been the communication from the NRRC. The website now has a dashboard that is updated every two weeks as well as some frequently asked questions but the expectation from government and the participants in the program is higher than that.
"There's much richer information there and we've been a little bit limited in recent weeks during the caretaker period in terms of what we can push out. So, we've used that opportunity to really consolidate a whole lot of our resources. We've increased staff in that space. We're well and truly ready to go there in terms of pushing out a whole host more information and look forward to working with our new minister when they're appointed as a part of that."
"I think certainly in terms of how we're going, how we're tracking with progress around the Resilient Homes Program is critical. People want that overview and then people would like to see, no doubt, more information around particular localities in terms of what's happening there. So we'll be able to push that out. We'll be able to push particular case studies out there relating to that later in April. We will be out there for consultation around the outcomes of the Resilient Lands Program, so we'll be out there with those short-listed sites. That will be a real opportunity for community to get engaged as part of that."
Being the hardest hit LGA in terms of flood-displaced people and financial losses, Lismore has the most expressions of interest out of the seven LGA's. Half of the land registrations have come from the Lismore LGA. One of the questions that has been constantly asked is when will the NRRC reveal the list of coloured zones? That is red, yellow and green.=['/
"We've worked through to develop what is a really robust tool in terms of hazard assessment and that pulls in modelling data right across the Northern Rivers. So, in terms of flood modelling data, there are a whole number of gaps in that data, in particular areas which we've been able to source, pulling in all the information to get down to an individual property level."
"It doesn't just look at flood height from the event that happened. It looks at them from a number of different flood events that can happen. Importantly, it looks at flood velocity, we're able to look at the condition of those homes based on the assessment reports and also the availability of evacuation routes from SES data to build up a really detailed hazard profile."
"With homes ranked from a hazard profile of one, being the lowest risk, to a hazard profile of six, being the highest risk. Those that are in hazard profile of five and six indicatively being eligible for voluntary purchase."
"So, we've got that tool in place there and we're going through a detailed peer review that will then enable us, we hope later in April, to pretty well automate that indicative eligibility assessment. Whereas now, as you can imagine pulling in all those multiple data sources that an individual property level is quite a laborious process, so this will automate that and be quite a powerful tool."
"When we get to the stage, where we're really confident that it's accurate, and I think we're very close to that, then our intention would be to share that data publicly on a place-by-place basis. We're not there yet but we're getting very close to it."
When asked where the data is coming from, Mr Witherdin said from multiple sources.
"We pulled in the whole range of modelling that has been undertaken across all of the catchments in the Northern Rivers in recent years. That's the best available information we've got at this point in time."
One scenario that has been discussed in the public arena is that a person or couple says no to a house buyback then another major flood hits Lismore and their house is seriously damaged once again. Will they be entitled to further financial compensation?
"I think ultimately they are decisions for government. I'm not able to provide guidance on that, but certainly that hasn't been the approach and I'd probably look at Queensland as an example of that."
"The opportunity we've got now is for people to understand that risk that they're subject to by staying in areas and in a whole range of scenarios where that risk profile is likely to increase into the future into these high-hazard areas. Certainly what we've got there in terms of the Resilient Home Program is a pre-flood market valuation at a time when the property market was very strong. You're not going to get a better opportunity there in terms of a voluntary purchase."
The offers in the marketplace number 69 and the NRCC have undertaken more than 250 valuations. Mr Witherdin said there are about 50 offers a week being made now as the process is now running smoother and faster since the start of 2023.
"The early feedback from people that have had offers is that they're very satisfied with the quantum that's been offered. So, I think there's no contention around that which is pleasing."
"Eight have taken that offer and one has declined."
"I think it is a big decision for people. They are relieved to get the offer and they then really need to consider the timing and acceptance of that offer. They need to get appropriate financial advice as well and certainly, we won't look to rush people through that process at all, we'll support them so they can make that decision at the appropriate time."
Another question that has been raised to the Lismore App is in terms of how the block of land is left if someone accepts the house buyback offer. Does the owner have to remove the house if they are not relocating it?
"No, they can absolutely leave it as is. Essentially, owners remove their personal items and move out. Equally, they can choose to relocate that house if they'd like to which happens at their cost. Even though we're purchasing the house and block, we're very happy for them to take that house at no cost.
"The program will cover the full make-safe of the site in the short term, you know, disconnection of all of the services, securing the site and then ultimately either moving, recycling or demolition of the home ensuring that there's no contamination on the site."
Affordability has been the keyword for nearly all of the 2000 people that will receive house buyback offers. We don't know where the 30+ plots of land are in Lismore and the Northern Rivers but given Mr Witherdin does, how is it looking in terms of affordability for those people?
"We certainly think there are some exciting early opportunities there that give us confidence that we'll be able to achieve affordability. That's why the location of these places in relation to existing transport networks, infrastructure such as water, sewer, and power is critical. They've got to have no flood risk, low bushfire risk, low environmental impact so we can move quickly and very importantly no cultural heritage restrictions."
"That's why we worked through a really robust process to get where we're at at the moment, so by the time we're out there for public consultation it has already been through a number of really stringent checks and that will mean that we're able to move rapidly in terms of how we can progress things."
There is no indication of how many people would like to take part in a house relocation yet, those numbers should be clearer as the number of offers and acceptances increases. What about land swaps? The two words that get mentioned a lot by residents but not by the NRRC as yet.
"From my point of view, I've absolutely never ruled anything out. It's certainly not within the, I guess, parameters of our current funding program for either Resilient Homes or Resilient Lands but we're working on a whole range of innovative solutions there, so we want to keep all things at play. Importantly, we want to keep that option for house moving at play. I think that is really critical from an affordability point of view and from retaining a sense of community.
Logistics is another huge headache for David Witherdin and the NRRC team. The time frame to build a house used to be, on average, nine months, now it's thirteen months due to a lack of trades and a shortage of materials. To raise roughly 200 homes is going to take at least five years and then there is the retrofits of another 2000 homes. How is the NRRC managing that side of the program?
"I think it will be very challenging for many homeowners, particularly many homeowners who still suffer the after-effects of a significant trauma to manage it for themselves. So, we've developed what's called a managing contractor model to undertake that work."
"We've been through an expression of interest process and we're now moving into a formal tender process with a select group of contractors. And then during May, we should have a managing contractor appointed. What that will mean is that from end to end, from approval through to completion, we're able to manage on behalf of homeowners, the raising and the retrofitting.
"Importantly, through that process, we're trying to reduce the cost of that (work) and assure people of the quality of that work. We've all seen many programmes when money is thrown around, all of the shonks come into the space and rip people off. They get poor value and poor quality outcomes. So, that's why we're moving to this model where there are particular incentives on the contractor around time, cost, quality and homeowner satisfaction."
"I think people need to understand that whilst the first house raising and the first retrofitting are expected to start by the middle of this year, that programme of work will take a number of years to roll out. That is just unavoidable because of the scale of what we're dealing with here. Nationally there's never been anything like this scale and in terms of our research, even internationally, we're right at the top end."
House buybacks have a risk-to-life and houses that have been heavily damaged to prioritise who goes first, but what about house raising and retrofits? What is the criteria going to be to determine who is first and who is last?
"For both house raising and retrofitting we're trying to reduce future economic loss and privatisation around that is absolutely a live discussion. We haven't finalised how we roll that out. With nearly 6000 registrations for the program, every individual's got their own compelling circumstances and needs, there's no getting away from that. In terms of how we prioritise the rollout, that is not yet finalised but what does make real sense in terms of both raising and retrofitting is a place-based approach because there are significant economies of scale where a contractor, for example, can work their way through a particular street rather than moving from Lismore to Woodburn."
Jamie Simmonds, the man that played a lead role in the Grantham flood relocation outcome has joined the NRRC in a full-time capacity. What is Jamie bringing to Lismore and the Northern Rivers?
"We are really fortunate. We've had a lot of engagement with Jamie over the last 12 months, he is sort of now being engaged here, embedded within our team. He brings some great perspectives, not just from Grantham but from a whole range of international experience. When I said earlier we haven't ruled anything out, we've been live to a whole lot of opportunities, he's really challenging us in every step of what we do and looking at what is possible. So, in the next couple of months we will be in a position to come forward with some of that work."
Another change for the NRRC in 2023 will be the move to bring it under the umbrella of the NSW Reconstruction Authority led by CEO Simon Draper. David Witherdin reported to Mr Draper when he was CEO of Land Services and Mr Draper was Secretary of the Department of Industry so they are not strangers and are in contact a number of times each week.
"I certainly think that is absolutely appropriate and I would expect that will happen later this year but importantly the NRRC will need to work as a self-contained unit or as a subsidiary of the Reconstruction Authority as a place-based delivery model. I think that's absolutely critical. We built the resources here, we've got great capability in many ways and for quite a while, we'll be ahead of the Reconstruction Authority in terms of what we're doing. We're sort of a pilot at a really significant scale in terms of reconstruction for them. So, the opportunity for two-way learning is excellent."
"How that happens and the timing of decisions around that will be decisions for the new government but I think that's a sensible approach. We will continue to work really closely with the Queensland Reconstruction Authority, sharing learnings both ways and work closely with the National Emergency Management Authority (NEMA) and only just over a week ago, we briefed the New Zealand government on our Resilient Homes Program. They're looking at their options on the back of the major floods they've had as well. People are looking internationally at what we're doing as well."
If the NRRC timetable can be met or exceeded, Lismore and the Northern Rivers will see a great deal more clarity in terms of the reconstruction of our region in the coming three months.
FOR SALE/OPEN HOMES