The ACT has released details of its cladding concessional loan program for eligible owners corporations and will start accepting applications later this month.

The program offers a fixed interest rate at the cost of governing borrowing, which is currently 4.2%; a loan repayment period of 10 years, which starts after works are completed; no application or other loan fees; individual loans generally up to $15 million per owners corporation; and no penalties for repaying the loan early.

Costs covered under the concessional loan will include the cladding remediation design and works, any “make good” works necessary due to cladding remediation, and regulatory fees, such as building approvals, the ACT Government says.

The concessional loan program is part of the Private Buildings Cladding Scheme, an initiative to help owners corporations with the upfront costs of rectifying combustible cladding.

Eligible owners corporations participating in scheme can apply for the low interest rate concessional loan from August 29.

“We recognise the challenges faced by apartment building owners to address combustible cladding without assistance, which is why we have provided financial support firstly with our testing and assessment rebate scheme and now with a concessional loan scheme to assist with rectification work,” Minister for Sustainable Building and Construction Rebecca Vassarotti said.

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