185JConditions to be met before entering into cladding rectification agreement

185J Conditions to be met before entering into cladding rectification agreement (1) Before entering into a cladding rectification agreement, the owner of the rateable land or, in the case of rateable land managed by an owners corporation, the owner of each lot on the rateable land— (a) must give the Council details in writing of— (i) all taxes, rates and charges owing on the rateable land or lot (including the total amount owing in respect of each tax, rate or charge) imposed by or under an Act; and (ii) all registered and unregistered mortgages over the rateable land or lot; and (iii) if a relevant mortgage is held against 2 or more properties including the rateable land or lot, the proportion of the debt secured by the mortgage that applies to the rateable land or lot calculated in accordance with subsection (3); and (b) subject to section 185M, may obtain the written agreement of an occupier to pay the cladding rectification charge that will apply in respect of their occupancy. (2) For the purposes of satisfying itself of the matters required in subsection (1)(a), a Council must give written notice to each owner or, in the case of rateable land managed by an owners corporation, each owner of a lot on the rateable land— (a) that the Council requires the details specified in subsection (1)(a); and (b) stating that the owner has 60 days from the date of giving the notice to provide the details. (3) For the purposes of subsection (1)(a)(iii), the proportion of the debt secured by the mortgage that applies to the rateable land or lot must be calculated by distributing the debt between all the properties against which the mortgage is held in proportion to the relative capital improved values of the properties in respect of the current financial year (as at the time of entering into the agreement). (4) A Council must not enter into a cladding rectification agreement unless the Council is satisfied that the total amount of taxes, rates, charges and mortgages owing on the rateable land when added to the total value of the cladding rectification charge is an amount that does not exceed the capital improved value of the land after the completion of any works that would be undertaken as part of the cladding rectification agreement. (5) A Council must not enter into a cladding rectification agreement in respect of rateable land that is managed by an owners corporation unless the Council is satisfied that, for each separate lot on the rateable land, the total amount of taxes, rates, charges and mortgages owing for that lot when added to the cladding rectification charge owing in respect of that lot does not exceed the capital improved value of that separate lot after the completion of any works that would be undertaken as part of the cladding rectification agreement. (6) If a person who receives a notice under subsection (2) fails to provide the required details within the time specified in the notice, the Council can be taken to be satisfied of the matters required in respect of subsection (4) or (5) (whichever is applicable) in relation to the rateable land or relevant lot on the rateable land (whichever is applicable). (7) The owner of rateable land, or owner of a lot on rateable land (whichever is applicable) must advise, in writing, at least 28 days before a cladding rectification agreement is entered into, any existing mortgagee in respect of the rateable land to which the agreement will apply— (a) that the rateable land or lot (as the case may be) is intended to be subject to a cladding rectification agreement; and (b) of the details of all cladding rectification charges that are expected to be declared by a Council in respect of the rateable land or lot (as the case may be) under the cladding rectification agreement. (8) If a Council is not satisfied of the matters set out in subsection (4), the Council may enter into a cladding rectification agreement if all the existing mortgagees of the rateable land agree in writing to the proposed cladding rectification charge. (9) If a Council is not satisfied of the matters set out in subsection (5) in relation to one or more lots on rateable land, the Council may enter into a cladding rectification agreement if all the existing mortgagees of those lots agree in writing to the cladding rectification charge. S. 185K inserted by No. 46/2018 s. 79.