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NRRC Update: First buyback offers are being made

The Lismore App

Simon Mumford

12 February 2023, 8:28 PM

NRRC Update: First buyback offers are being made

Most of what we have heard from the Northern Rivers Reconstruction Corporation has been setting up processes in what is a very complex system that is a first for NSW in terms of the size and scale of damage caused by the natural disaster on February 28 2022.



In our last chat with Executive Director Kieron Hendicott in late January we were told that about 130 high-risk households have been identified with valuation inspections of 15 properties taking place at that moment.


This was the precursor for the NRRC to 'scale up' operations now the pilot model was nearly complete so the community could see results start to flow.


CEO David Witherdin returned after his Christmas break so the Lismore App had a chat to see what progress has been made in the past few weeks.


"It's certainly been a really busy period in the background, in terms of setting up all the foundational governance that underpins the delivery of that (Resilient Homes) program."



"We're absolutely on track to offer the first voluntary purchases in February, we expect those to go out in the next couple of days."


"We've got 20 evaluations taking place every week and in terms of that process we've got two independent evaluations being undertaken on the initial property tranches and then a third-party independent review of that. We really want to make sure people get the optimum outcome in terms of their offer."


"So, we're well set up in terms of case management. We have a team of more than 25 undertaking that process and over the next week or two, we're really going to scale up in all aspects of delivery of the program."


"We get the sentiment loud and clear from people that we're not moving quick enough and I get people's frustration that nearly a year on from the flood we will actually see a voluntary purchase. But I think we need to understand that this programme was only announced on the 28th of October (2022) and it is a $700 million program over the next 18 months. It's really important we get all this underpinning governance sorted out right so that we can deliver best value for money at scale under that programme."


"On average, the spend will be in the order of about $10 million per week over the next 18 months. So, we've got to get that stuff right because the last we want to do is be responsible for delivering a school halls program or a pink batts programme. Something that really doesn't deliver on community expectations and doesn't deliver on value for money."



You say you are going to scale up, what are you scaling up to in terms of the Resilient Homes Program?


"When we talk about scaling up it is in every element of the program. Around case management, we have a separate team there that are doing the assessments, a separate panel of valuers and then in terms of working through procurement, different delivery models for both the voluntary raising and the retrofitting. So, we're certainly looking at a number of options there at how we scale up to really work through the initial assessment so that people understand their eligibility for the program."


"Clearly, we can't deliver all of the raisings, the retro fittings within a 12 or 18-month period through market capacity. That will take a number of years. But it's really important that people have a clear understanding as soon as possible around their eligibility."


"Our target is to have everybody who's sort of been through and registered, which is now over 7000 registrations for the program, they've all had that first pass assessment by the middle of this year and that's by the end of June. We are certainly looking at if we can do that quicker."


"We anticipate, in terms of voluntary buybacks that we would, by April, have at least 250 offers made."


"What is reaffirming to me is we spent much of last Monday up in Brisbane at the Queenslander Reconstruction Authority with Public Works up there who are delivering aspects of their program, and people may recall the Resilience Home Fund was announced in the middle of May and we're tracking a little bit quicker than where they were at the same point in time. It will never be quick enough for the community, they're an agency that has been set up for 12 years. We were only set up on the first of July and we've been scaling up ever since."



You spoke about the first offers going out now, how many are we talking?


"There will be the first handful this week and we expect every week thereafter they will be in the order of probably 20 or 30 a week. In terms of what we're doing will be providing a public-facing dashboard in the next week or so that will track progress against all of the streams of the programme. They will be really solid regular updates so people can see where we're at on our website.


"We did a total refresh of our website last week, so there's a lot more detail. They've put in guidelines for the programme, a whole lot of frequently asked questions and now there's a 1800 number set up as well. So, we're sort of scaling up on all fronts and people will have a lot more visibility around how we're tracking."


As time goes by do you feel the number of homeowners that will take up house buybacks is less than when you got the funding in October because people have moved back into their homes?


"I think that there's always that risk. One of the observations of the Independent Flood Inquiry is about that collective amnesia from a community as you get post-flood. You work through a period of good weather, the recovery's going on and people start to look forward rather than back and the thinking can be that's as bad as it ever gets and we won't see it that bad again. But look at what we've been through here in the community just in a cycle of five years, we know that it cannot just happen again but we can get even bigger events."


"It certainly is a really important role for us to talk to those people that live in high-hazard areas, they're the ones that will be eligible for buybacks and give them an understanding of the risk that is there for them. And that's a real risk to life, not just an economic loss. So, we're going to work with the community around the understanding of that and say look for the first time there's a pathway that may avoid that future risk to life, the emotional trauma and the economic loss. Here's a way forward to break out of that cycle."


"We're yet to see what that take up will be and we'll have a much clearer picture in the next six months around that, and we sort of calibrate the programme accordingly. But also, as we move into next year, we will get the CSIRO report to deliver their hydro dynamic catchment model and that will give us a much clearer picture going forward as well. I think, from a community point of view, they've got real options on the table."


"We certainly encourage those people in high-hazard areas to take it up but, ultimately all three streams of the program are voluntary and everybody has to consider their own circumstances and make the appropriate decisions around it."



If the take up for house buybacks is only 50%, would you consider that a fail?


"No, I wouldn't at all, because a 50% take up would be really significant and for those people, it gives them a pathway forward to remove themselves from not just risk but trauma. So, I think that will still be very successful."


"Look at what happened in Grantham. We spent a lot of time this week with Jammie Simmonds who was responsible for delivering their program. Not everybody opted in for the relocation the first time and for those that didn't they got smashed again from the events of last year. Now, they've all opted in."


"Having spent more time up there in South East Queensland meeting with a number of homeowners who have opted in for either house raising and particularly retrofitting, some of them had participated in a programme run by Brisbane City Council prior to the floods last year so, it was four or five years ago. Some of them had water through their house and half a metre of water through the house in the events of last year. They were back in the house in two or three days. The same kitchen was in place, they didn't even have to repaint. So, some of these options are just absolutely compelling."


"I think if people have got that in front of them and they're eligible you would have to be crazy not to take it up and reduce your risk in the future."


If a household has already paid money to retrofit their home, can they be reimbursed through this program?


"If they're eligible in terms of what their hazard profile is and the work is consistent with the guidelines we've got then absolutely for both streams so house raising and retrofitting. We'll look at that on a case-by-case basis and where they're eligible, consistent with the standards, there are absolutely provisions for people to claim that work."


Part 2 with David Witherdin will be published later today.



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