Mascot Towers victims to receive $400 per night from state government

In an unprecedented move from the NSW Government, Mascot Towers tenants and owners who have been forced out of their homes in the defective building will receive hundreds of dollars each night as part of an emergency loan.

• Mascot residents vote to raise $1m
• Mascot owners rage after fiery meeting

Exclusive: Mascot Towers owners and tenants turfed out of their homes indefinitely will be loaned up to $400 per night to cover expenses under a state government rescue package.

In an unprecedented move building experts say could be replicated across the country, a $3 million one-off emergency fund will be given to the Mascot Towers body corporate as a zero-interest loan to be paid back when investigators can pinpoint the culprit.

Engineers are unsure whether cracking and structural damage at the 132-unit block has been caused by shoddy building work or construction work next door.

Residents attempt to access the building to collect belongings. Picture: Darren Leigh Roberts

Residents read billboards posted at the building’s entrance. Picture: Darren Leigh Roberts

If apartment owners are unable to find anyone to sue, the government will recoup the money from residents later.

Based on actual expenses, residents of a one-bedroom unit will be able to access funding for accommodation of up to $220 a night, $300 a night for a two-bedroom unit and up to $400 a night for a three-bedroom unit.

The loans make up a $3 million state government rescue package. Picture: Darren Leigh Roberts

MORE FROM BEN PIKE

Underground: First look inside new M4 East Tunnel

Man wakes from six week coma after kangaroo crash

Parents warned to watch kids to prevent burns

“I can only imagine the stress that displaced residents are feeling,” NSW Better Regulation Minister Kevin Anderson said. “Specialist Engineers are currently assessing the damage at Mascot Towers to determine the root cause of the problem. ”

The money will come from interest earned on government’s rental bond fund.

Mascot Tower. Picture: Darren Leigh Roberts

Asked if this opens the government up to covering payments for other cases, a ministerial spokesman said: “These are exceptional circumstances and here is an expectation that this money will be repaid, whether it be through insurance, compensation received or other reasonable arrangement with Government.”

A government source said the package is something “we don’t have plans of repeating”.

The Sunday Telegraph can also reveal the government will release a discussion paper on Tuesday outlining proposed building industry reforms.

While the paper repeats much of what the government said in February, it is proposing to employ specialist building officers.

These officers will have “a full suite of powers” to assist the regulator monitor and enforce compliance and carry out inspections and investigations providing they have a warrant or owners’ permission.

Mascot Tower residents who have as yet been unable to access their properties have been given access today.