Local Government New Zealand wants the leaky homes resolution service abolished and is proposing a new way to deal with outstanding cases.
In the past six years, only 6% of claims have been resolved by the Weathertight Homes Resolution Service set up by the Government.
Local Government's vice-president Kerry Prendergast says too much money is being wasted as the current resolution process is laborious and expensive for homeowners.
Ms Prendergast, who is the mayor of Wellington, says the proposed model would abolish the resolution service and see more money put straight into fixing the leaky homes.
She says if the Government contributed directly to fixing the homes, legal costs would be avoided.
Ms Prendergast hopes to speak to Housing Minister Maryan Street soon about the proposal.