The Victorian Government has pledged to reduce the cost of removing potentially flammable cladding from buildings.
Minister for Planning Richard Wynne has announced changes to the Local Government Act that will create Cladding Rectification Agreements (CRA).
CRAs will be similar to existing Environmental Upgrade Agreements, which allow owners to upgrade their homes to make them more environmentally sustainable and pay it off through their council rates.
The arrangement will be between owners (or owners corporations), lenders and local councils, providing long-term, low-interest loans to pay for building work to rectify cladding.
Owners would be charged through their rates over a minimum period of ten years, with costs transferred with the property if sold.
"This scheme is the first of its kind anywhere in the world and offers owners the cheapest and most efficient way of removing dangerous cladding from their buildings," says Wynne.
"As well as making properties safe and compliant with building laws, these financing agreements allow cladding to be removed quickly, without affecting property prices."
At present the Victorian Building Authority (VBA) has almost completed its audit of 1,369 planning and building permits, and has issued more than 100 building orders to residents.