NT Government to pay home owners for bungled affordable Bellamack housing scheme

Homeowners caught up in a disastrous Northern Territory affordable housing scheme have finally got an answer over compensation.

Homeowners caught up in a botched affordable housing scheme will be bought-out by the Territory Government, ending more than a decade of uncertainty and bureaucratic bungling.

The NT Government has advised the Department of Land, Planning and Environment to negotiate property acquisitions with eight homeowners who bought houses in Bellamack under an NTG affordable housing scheme.

In total, 18 Titan Homes were built as part of the scheme by veteran Darwin builder George Milatos.

The homes were marketed as being affordable and tough when they were sold in 2012, but within two years the government had begun receiving complaints about structure and safety.

In 2017, buyers’ worst fears were confirmed when developer, Perth-based Brierty Ltd, wrote to homeowners telling them their houses might not be safe in a cyclone and offering to reimburse costs if they were forced to seek shelter in a hotel.

The NTG is set to buyback homes built as part of an affordable housing scheme. Picture: Matt Cunningham

In August 2017, Brierty subsidiary Bellamack Pty Ltd wrote to homeowners this time saying rectification work would begin immediately, but it didn’t.

Homeowners were forced to seek alternative accommodation when Cyclone Marcus struck the Top End in 2018.

Three years later, after receiving an engineers report, the NT Government said there was “no immediate safety risk” with the homes.

But when the confidential Acer Forrester report was made public, it warned panels from Titan homes could “become airborne debris, endangering the surrounding community and houses.”

As well as not being fit to withstand cyclonic winds, the reports said the homes would struggle to withstand a thunderstorm.

The owners of 10 of the 18 homes covered under the Territory Government’s Home building certification fund have already been compensated, but the remaining eight were built under a different scheme that required an alternate mechanism to secure compensation.

In a statement to this masthead, Lands, Planning and Environment Minister Josh Burgoyne said his department received advice from building professionals the eight remaining homes “may present a safety risk to occupants and surrounding residents in the event of a cyclone”.

The NTG wants to end this long-running compensation dispute. Matt Cunningham

He said the department had informed owners about the findings of the structural assessment of their properties and the NT Civil and Administrative Tribunal, backed by the NT Supreme Court, had ordered the builder to compensate five of the homeowners under the Residential Building Cover scheme.

He said owners can pursue Mr Milatos for compensation and that on behalf of the eight homeowners, the NT Government had instructed the Department to negotiate with the homeowners to acquire the properties by agreement.

Titan Building Supplies owner George Milatos.

He said as part of the land acquisition process, the Territory will seek agreement from landowners for the compensation awarded by the court to be assigned to the Territory. 

This would enable the Territory to pursue Mr Milatos for the compensation, in the event the owners do not or cannot.

Homes on properties that are successfully acquired by the NT Government will be demolished and the land disposed of by auction.

“The homeowners have dealt with years of uncertainty and as the Minister I wanted to

ensure this is put to an end,” Mr Burgoyne said.

“The Government has been working with homeowners and is taking steps to acquire the

properties.

“We will continue to pursue claims against the developer, and we will demolish the

affected houses and issue the lots back onto the open market.

“Bellamack is a great local community, and it will be good to see this issue resolved once and for all.”

Homeowners have signed nondisclosure agreements with NTG.

Mr Milatos denied wrongdoing and said he had complied with designs provided by the government.

Originally published as NT Government to pay home owners for bungled affordable Bellamack housing scheme