Source: Retirement Commissioner
The Retirement Commissioner is pleased to see the Government’s commitment to progress the review of the Retirement Villages Act 2003.
Associate Minister for Housing Tama Potaka and Seniors Minister Casey Costello announced today (Wednesday) that the Government is taking a more focused approach to the review including considering three priority areas relating to:
- maintenance and repairs of operator-owned chattels and fixtures
- managing complaints and disputes
- options for incentivising or requiring earlier capital repayment when residents move out of a village.
This comes following analysis of more than 11,000 submissions on a discussion paper developed by the Ministry of Housing and Urban Development which tabled a raft of proposals relating to retirement village living.
Retirement Commissioner Jane Wrightson says the three areas of focus align to the issues that she’s seen regularly raised over the years and part of what she’s been advocating to see updated in the legislation.
“There are longstanding issues that need to be resolved with a holistic look at the system. Changes will ultimately be good, not just for the residents, but those in the industry as well,” she says.
“Having a fit for purpose, independent complaints scheme for example, will help take the onus off village managers from trying to resolve the messier disputes and provide a safety valve for both parties.
“Providing some form of payment to residents or their families, while waiting for the License to Occupy to sell, whether in the form of interest or the capital sum minus the deferred management fee, may make the lives of village managers easier. Villages will deal with fewer distressed families who aren’t sure how they can pay for their parent’s rest-home care.”
The Retirement Commissioner first called for a review of the legislation following the release of her white paper published in 2020 and the response to submissions received in 2021.
“Retirement villages remain an attractive choice for some older New Zealanders, providing a sense of community and a quality option for those who wish to downsize,” says the Retirement Commissioner.
“I look forward to a speedy resolution to address the most significant concerns we have with the current legislation and see the consumer protections for residents strengthened.”
