Tara Murray
Jess Rodriguez was left with a flurry of emotions with the news that the state government is extending the Liquidated Builders Customer Support Payment Scheme to help Victorians whose builder has become insolvent without taking out insurance on their behalf – as required by law.
Ms Rodriguez purchased a home and land package through Montego Homes, which was liquidated last month after it went into voluntary administration in January.
She was looking at being $30,000 out of pocket.
On Wednesday, the state government announced that about 100 extra Victorians may be eligible for payments from the scheme, who were left without Domestic Building Insurance (DBI) through no fault of their own.
The government statement said it would include Montego Homes’ customers and all builders should understand that this extension is occurring under special circumstances and will be funded through the previously announced $13.55 million support package.
Applications for the extended scheme are expected to open in coming weeks.
As reported by Star Weekly, Ms Rodriguez was all set to build her dream house in Ironbark Way, Doreen, with her mum building next door.
Ms Rodriguez soon found out that even when the property was settled that she would unlikely to be able to build on the block with the council telling her they wouldn’t issue a permit for the site.
Ms Rodriguez and her mother initially believed that Montego Homes had taken out insurance policies as required of builders, but said they’ve since found out they are not covered.
Key initial findings showed that 63 homeowners are affected by the company not having appropriate insurance in place for deposit holders.
It was a tearful Ms Rodriguez when she found out about the news.
“We had no idea,” she said. “We flooded members of parliament’s email yesterday [Tuesday] with emails.
“We lodged our petition in parliament yesterday. Hopefully we are the last ones in this situation.
“They should talk to us so see where it all went home.”
Ms Rodriguez said once she gets the money back, she should be able to build on her block with Simmons Homes agreeing to lodge the planning permit with the Whittlesea council on her behalf.
Under new offences introduced last month, if a builder receives money under a major domestic building contract without holding the required domestic building insurance, a penalty of up to $96,000 is in place for an individual or $480,000 for a company.
Assistant Treasurer Danny Pearson the state government is supporting families who have been left stranded through no fault of their own and putting builders on notice.
“We urge all customers to check that their builder has taken out insurance – as all builders are obliged to – through the VMIA policy checker.”
