Karine,
I’m sorry if it seems as though I am hounding you but the pressure from members of the Home Builders Action Group [HBAG] is becoming very difficult. Our members are saying, with some justification, that the implementation time frame for the No Interest Loans Scheme (NILS) contradicts the whole purpose of the scheme which is to relieve urgent financial pressures; prevent builder collapses; get the building industry moving and see the earlier completion of homes, some of which have been under construction for more than 3 years.
The NILS was announced at the start of January with initial applications closing on 31 January. Now, on 20 February, the loans are still not available, and nobody appears able to say when eligibility will be decided and when the loans will be provided. At the same time, the whole industry knows there have been registration by more than 100 builders and, working on an announced maximum loan of $300,000 per builder, it is clear to everyone that $10 million will be insufficient.
Further delays will probably reduce the problem because of builder defaults but that will cost the Government more that the BNILS through its indemnity guarantees and so it is hard to see the logic in the delay.
Can you please advise when the scheme might be up and running?
Best Wishes
Yours sincerely
CHAIRMAN HBAG
0412 373 404