+ What is the Targeted Hardship Fund?

The Targeted Hardship Fund (THF) is a $12m ex gratia financial support fund to help businesses badly affected by construction on City Rail Link’s main contract of works.

On Friday 03 September 2021, project Sponsors – Auckland Council and the NZ Government – announced the establishment of the THF to support small businesses experiencing hardship from major and sustained City Rail Link (CRL) construction disruption surrounding the Te Waihorotiu Station, Karanga-a-Hape Station and Maungawhau Station (within the C3 Affected Area).

The THF is managed by City Rail Link Ltd (CRL Ltd) using a third party for administration purposes – in line with high-level guidance provided by project Sponsors. This external organisation is project management specialists TSA Management.

The THF is designed to benefit small businesses adversely impacted, and suffering genuine hardship caused by CRL construction, not landlords/landowners who stand to benefit from increased property value when the CRL is complete.

As such, CRL Ltd will seek a meaningful contribution to the amount of financial support offered to business owners from their landlords. In the case that landlords do not contribute, CRL Ltd will make up the full 100 per cent of the determined level of financial assistance to the eligible business.

+ How much financial assistance will be provided under the programme?

Project Sponsors, the NZ Government and Auckland Council, are providing up to $12 million over the next two years for the Targeted Hardship Fund, with a review late 2022 for the following two years.

The amount of financial assistance a business owner can expect to receive is based on rent levels and hardship suffered – up to a maximum payable limit of $100,000 per year. The total financial support (Advance Interim Payment and Targeted Hardship Fund payment) a business receives cannot exceed their total annual rent amount.

Payments will be administered quarterly and will be initially backdated to 01 February 2021.

+ What is an Advance Interim Payment?

Recognising that the THF eligibility and assessment criteria would take some weeks to be finalised, project Sponsors approved CRL Ltd to establish an Advance Interim Payment to provide timely financial assistance for businesses experiencing genuine hardship resulting from sustained CRL construction disruption.

Now that the THF is finalised and open for applications, the Advance Interim Payment scheme is closed and all Advance Interim Payment applications have been processed. Any Advance Interim Payment a business receives will be deducted when calculating an applicant’s total THF payment.

+ How can I apply for the Targeted Hardship Fund?

Please read all relevant information, including eligibility criteria on the Targeted Hardship Fund at www.cityraillink.co.nz/targetedhardshipfund (above). If you believe your business is eligible for the Targeted Hardship Fund, you can download an application form above and send a completed form to: Targeted Hardship Fund – TSA Management * Email - C3Hardship@tsamgt.com * Post - PO Box 26433, Epsom, Auckland 1344 * Delivery/courier - Level 2, 88 Broadway, Newmarket, 1023

Alternatively, you can contact TSA at C3Hardship@tsamgt.com and they will send you an application form.

If you have any questions, please contact TSA Management: * Ariesha – 021 169 4149

+ If I receive the Covid-19 Wage Subsidy can I still receive the Targeted Hardship Fund?

Receiving the Covid-19 wage subsidy won’t affect a business’ eligibility to receive financial assistance under the Fund.

It will however affect how much a business will be offered – as project Sponsors have specified that if a business is receiving the COVID-19 Wage Subsidy (or other targeted Government financial support for a COVID-19 Alert Level 3 or 4 event), it should not be eligible for financial assistance from the THF for the same time period.

+ Am I eligible/do I qualify?

To qualify for Targeted Hardship Fund, a business will need to satisfy the following eligibility criteria:
* It is situated immediately adjacent to CRL construction, in the C3 Affected Area * It has suffered legitimate financial hardship due to major and sustained CRL construction disruption * It began operating in the C3 Affected Area prior to 01 October 2019. Businesses are ineligible for the fund if they are sold and/or change majority ownership after 01 October 2019. * It qualifies as a small business, i.e. it employs fewer than 20 full-time equivalent employees * It has been and is still operating at the leased premises, with all required statutory and regulatory approvals under the relevant laws, including planning, licensing, and building approvals * The applicant is the business owner, not landowner or landlord

Please note: * In exceptional circumstances, businesses in the wider proximity of the C3 works that have suffered genuine hardship because of the sustained disruption from CRL construction will be considered, if CRL Ltd determines there is a strong case for financial assistance * If a business owner disagrees with the outcome of an application decision, they have the right to challenge this decision. In this instance, the business owner will need to make a case and provide verifiable evidence of this. CRL Ltd will consider all cases at its absolute discretion. * Some owner occupiers of small businesses may also be eligible
* All payments are made on an ex-gratia basis * CRL Ltd and TSA Management will keep all applications details confidential * If a business is receiving the COVID-19 Wage Subsidy (or other targeted Government financial support for a COVID-19 Alert Level 3 or 4 event), it is not eligible for financial assistance from the Fund for the same time period

The Fund is not available to: * Any business located outside the C3 Affected Area * Any business owner who acquired a business located within the C3 Affected Area after 01 October 2019 (the main start of C3 works) * Any business not experiencing genuine hardship * Land/property owners in the C3 Affected Area

+ What constitutes a small business?

The Ministry of Business, Innovation and Employment defines a small business as having less than 20 full-time equivalent employees.

+ Who can apply for assistance?

The Targeted Hardship Fund targets small business owners who are leaseholders of premises within the C3 Affected Area. Some small business owner/occupiers may also be eligible. The business owner must have started the business, or took over its lease, prior to 1 October 2019 – in line with Sponsor’s high level guidelines. Businesses are ineligible for the fund if they are sold and/or change majority ownership after 01 October 2019.

+ What/where is the C3 Affected Area?

The C3 Affected Area maps can be found above. These maps show the indicative C3 Affected Area for each station - Te Waihorotiu Station, Karanga-a-Hape Stationand Maungawhau Station. Being situated within the affected area doesn’t necessarily mean a business will automatically qualify for the Targeted Hardship Fund. Successful applicants must satisfy all eligibility criteria, such as operating in the affected area before 01 October 2019 and being affected by major and ongoing construction disruption, resulting in financial hardship.

+ I am just outside of the C3 Affected Area, will my application still be considered?

CRL Ltd may consider applications from small businesses operating immediately outside the C3 Affected Area (at its discretion), if the business can demonstrate that its access is severely compromised due to CRL works.

+ What if my business’ lease started in the Affected Area after 01 October 2019?

Businesses must have been operating prior to 01 October 2019 (i.e. the start of C3 main contract works) to be eligible for the Fund, as set out in the Sponsor’s guidelines. CRL Ltd is required to follow these guidelines, and therefore does not have discretion to modify the eligibility criteria.

+ How do I apply for the Targeted Hardship Fund?

To apply for the Targeted Hardship Fund, you will need to complete an application form and provide supporting documentation. Please see application forms above.

If you have any questions, please contact TSA Management: * Ariesha  – 021 169 4149

+ What if my business is closed since February 2021, can I still apply for the Fund?

Applications to the Fund will initially be backdated to 1 February 2021, then paid quarterly moving forward. So applications can be made for businesses that were operating at that time even if they have now closed. These applications will be reviewed on a case-by-case basis depending on the current circumstances of the business.

+ What does the application process involve?

After a qualifying business has applied, the current level of construction impact will be assessed and the amount the business can qualify for under Fund will be determined. A meaningful contribution towards this level of financial support will then be sought from the business’ landlord, where viable. In the case that landlords do not contribute, CRL Ltd will make up the full 100% of the determined level of financial assistance to the eligible business.

+ Why are you appealing to landlords/landowners to help?

City Rail Link Ltd and project Sponsors agree that landlords have a role to play in keeping small businesses afloat and by voluntarily reducing rent or contributing to the amount of financial assistance offered businesses through the THF. We are asking landlords to come to the table and help their tenants as some landlords will in time experience a property value uplift by virtue of being close to City Rail Link stations.

In the case that landlords do not contribute, CRL Ltd will make up the full 100% of the determined level of financial assistance to the eligible business.

+ How long will the process take?

Once we have receive all the relevant supporting documentation, if eligible, your application will be processed and payment will be received within approximately 20 working days.

+ Will my application remain confidential?

All information surrounding individual applications, including the level of financial support offered, will be treated as highly confidential by City Rail Link Ltd and TSA management.

+ I do not have a lawyer; can I still apply?

This THF is created specifically to be user-friendly to business owners and legal representation is not required to apply.

+ Who can I contact in relation to my application?

You can email C3Hardship@tsamgt.com or call TSA Management: * Ariesha – 021 169 4149

+ How often are Targeted Hardship Fund payments made?

Payments under the Targeted Hardship Fund are administrated quarterly in tranches. The relative periods for each tranche are as below.

• Tranche 1 – 01 February 2021 to 30 September 2021 Closed
• Tranche 2 – 01 October 2021 to 31 December 2021 Closed
• Tranche 3 – 01 January 2022 to 31 March 2022 Closed
• Tranche 4 – 01 April 2022 to 30 June 2022 Closed
• Tranche 5 – 01 July 2022 to 30 September 2022 Closed
• Tranche 6 – 01 October 2022 to 31 December 2022 Closed
• Tranche 7 – 01 January 2023 to 31 March 2023 Closed
• Tranche 8 – 01 April 2023 to 30 June 2023 Closed
• Tranche 9 – 01 July 2023 to 30 September 2023 Closed
• Tranche 10 – 01 October 2023 to 31 December 2023 Closed
• Tranche 11 – 01 January 2024 to 31 March 2024 Closing soon
• Tranche 12 – 01 April 2024 to 30 June 2024 Open
• Tranche 13 – 01 July 2024 to 30 September 2024 Open

Please note the first tranche for the THF was backdated to February 2021 to reflect the Sponsors guidelines.

+ Is there an application cut-off date for the Targeted Hardship Fund?

To ensure businesses are assessed accurately against the relevant time period and processed in a timely fashion, applications for the THF will be administrated on a quarterly basis and applications must be received within six months from the end of the relevant period.

The relative periods for each tranche are as below.

• Tranche 1 – 01 February 2021 to 30 September 2021 Closed
• Tranche 2 – 01 October 2021 to 31 December 2021 Closed
• Tranche 3 – 01 January 2022 to 31 March 2022 Closed
• Tranche 4 – 01 April 2022 to 30 June 2022 Closed
• Tranche 5 – 01 July 2022 to 30 September 2022 Closed
• Tranche 6 – 01 October 2022 to 31 December 2022 Closed
• Tranche 7 – 01 January 2023 to 31 March 2023 Closed
• Tranche 8 – 01 April 2023 to 30 June 2023 Closed
• Tranche 9 – 01 July 2023 to 30 September 2023 Closed
• Tranche 10 – 01 October 2023 to 31 December 2023 Closed
• Tranche 11 – 01 January 2024 to 31 March 2024 Closing soon
• Tranche 12 – 01 April 2024 to 30 June 2024 Open
• Tranche 13 – 01 July 2024 to 30 September 2024 Open

+ What does ex-gratia mean?

Ex-gratia is Latin for “by favour”. This means THF and Interim Payments will be based on goodwill not a legal obligation.

Receiving payments under the Fund does not impact your right to make claims or seek other legal remedies including under the Public Works Act 1981 at a later date.

+ What other ways can CRL help my business during construction?

City Rail Link and its contractors, the Link Alliance, work with businesses in a number of ways to help minimise the impact of construction on neighbouring businesses. This includes business mentoring, wayfinding, activations, street cleaning and maintenance, promotional materials, and bespoke Small Business Support Programme.

For more information please contact the station teams.

+ Where can I find more information about the THF?

To find the most up to date information on the Targeted Hardship Fund, visit the dedicated webpage on the City Rail Link website here.

+ What is the Sponsors high-level guidance?

CRL project Sponsors have issued the below guidelines to CRL Ltd to adhere to when delivering the Fund.

• The overall objective of the Fund is to provide targeted assistance to small businesses that experience major and sustained disruption and genuine hardship relating to the C3 construction activity from 1 February 2021 onwards.
• Financial assistance to businesses should be made available on an ex-gratia basis only
• Financial assistance should target businesses where there is evidence of major and sustained disruption, financial hardship, and a reasonable case for financial assistance being required (such as small vulnerable businesses)
• Financial assistance should target businesses immediately adjacent to the C3 works. In special circumstances, businesses in the wider proximity of the C3 works (e.g. a business that is not immediately adjacent to the C3 works but where access is severely compromised) could be considered where CRLL determine there is a strong case for financial assistance
• Financial assistance should be made available to businesses in their capacity as a tenant. In special circumstances, small businesses that occupy their own premises could be considered where CRLL determine there is a strong case for financial assistance
• A meaningful contribution towards the level of financial assistance for an eligible business determined by CRLL under the Fund should be sought from the business’ landlord in each year the Fund is in operation. This should include the following approach:
  • as part of CRLL’s communications and stakeholder engagement, encourage a meaningful contribution where viable for the landlord
  • in the case that landlords do not contribute, that CRLL makes up the full 100% of the determined level of financial assistance to the eligible business.
• Eligible businesses should be limited to businesses that commenced in the affected area before 1 October 2019, when the C3 works began
• If a business is receiving the COVID-19 Wage Subsidy (or other targeted Government financial support for a COVID-19 Alert Level 3 or 4 event), it should not be eligible for financial assistance from the Fund for the same time period.
• Given that applications from affected businesses may take time to assess, advance or interim relief should be available for likely eligible businesses experiencing immediate hardship once their application has been received and is under consideration. Any advance or interim payment would be deducted from the total assistance provided.

+ I have already received payments under the BHP, am I eligible for the Fund as well?

If a business is currently in the C3 Affected Area, it will be considered for the Fund regardless of any payments received under the Business Hardship Programme.

+ How does the Fund differ from the BHP?

The Business Hardship Programme (now closed) was a rent relief scheme for businesses along lower Albert Street impacted by delays to the construction activities carried out as part of C2 (Contract 2). The BHP was funded by City Rail Link Ltd within the project’s total project costs.

The Targeted Hardship Fund is a first of its kind in New Zealand as it offers financial support to impacted businesses suffering financial hardship due to major and sustained construction disruption (in the C3 Affected Area). The TFH has been funded by project Sponsors in addition to total project costs.