Owners of apartments in Sydney’s Mascot Towers may reach a potential settlement to clear massive debts for the first time since being forced to evacuate their units due to defects.
The New South Wales building commissioner, David Chandler, has offered a lifeline to residents of the buildings, in the city’s inner-south, who have been faced with significant repair bills since cracks were discovered in the basement in 2019.
In a statement, a spokesperson for the NSW Building Commission said Chandler was “continuing discussions” with Mascot Towers property owners and lenders.
“These negotiations include the potential sale of lots to a third party at the discretion of owners,” the spokesperson said.
“Each individual owner will be responsible for determining their preference for sale based on personal financial and legal advice.
“Building Commission NSW is committed to working with impacted parties at Mascot Towers to reach resolution.”
A deal would mean owner-occupiers could still bear a financial loss by agreeing to sell their homes to a new third-party commercial consortium, as opposed to having to sell as a collective.
But it would allow them to cancel their outstanding strata debts and mortgages on the 11-year-old building.
Chandler’s role was created in 2019 by the Coalition government after cracked apartment buildings, including Sydney’s Opal Tower and Mascot Towers, exposed the low quality of new builds and a poor compliance system.
Late last year his powers were dramatically expanded after legislation was passed to better regulate the construction sector.
The legislation granted the state’s construction watchdog the ability to inspect houses and apartments under construction, order defective work to be fixed and penalised so-called phoenixing in the industry.
The premier, Chris Minns, said at the time he had considered how to reconcile tighter regulations for the construction sector with the state’s target of building 75,000 new homes a year.
“I have spoken to all of the big developers and builders in NSW … and they say that for the first time someone has come along to drive the rogues out of the industry,” he said.
For owner-occupiers of the 131 high-rise apartments and surrounding units, it’s been almost five years of legal headaches since Mascot Towers was evacuated due to cracking in the primary support structure and facade.
Those residing were unable to sleep in their own homes after concerns about the structural integrity were raised.
Speaking at an inquiry into the regulation of building standards the same year residents were ordered to leave their homes, one of the apartment owners, Vijay Vital, broke down as he spoke of how the situation had devastated his family.
He alleged Mascot Towers had high strata fees compared with neighbouring buildings and had been plagued by defects due to substandard materials and negligence, the inquiry heard.
In a submission to the inquiry, the Mascot Towers Owners Corporation said the NSW government had failed to establish a sufficiently tough regulatory framework for builders, certifiers and property developers.
The submission outlined Mascot Towers’ various defects leading up to the cracking problem, including lukewarm water all year round, severe stormwater flooding and the incorrect use of electrical cables.
The building was passed for occupation despite these faults, it said.
To date, the NSW government has provided $21m in accommodation or investor support to affected owners.
