Source: Retirement Village Residents Association
The Government appears on the right track in signalling changes to better balance the needs of residents of retirement villages and operators and ensure this critical industry remains viable.
“We welcome the direction of travel for future reform following the review of the industry carried out by the Ministry of Housing and Urban Development,” said Carol Shepherd of the Retirement Villages’ Residents’ Council (Council), a newly formed body established to advocate for those living in retirement villages (see background below).
The next stage of the review including key priorities for further work was announced by Ministers yesterday. This includes the intention to bring new legislation to reform the Retirement Villages Act to Parliament in the next term.
“The Council has advocated for legislative change to provide improved consumer protections for residents and ensure the industry is sustainable so this is much needed, albeit slower progress than we would have wanted.
“The country faces big challenges in this sector with the population of villages set to more than double from 50,000 residents today within the next 20 or so years.
“It is pleasing that the Government has recognised the need to balance the needs of residents and the need for a sustainable industry. As our population grows and ages, residents need to have choices, their assets need to be better protected and the industry must be able to provide affordable options.
“Specifically, the Council is pleased the Government has decided to look at options for incentivising or requiring early capital repayments when residents move out of a village.
“This has been a big issue for residents. They quite rightly want their capital returned to them or their families quickly and interest should be paid as well if the process takes too long.
“The Council also welcomes the intention to prioritise work on better managing complaints and disputes and who should pay for the maintenance of operator-owned chattels and fixtures. These are also areas of great concern for residents.
“The Council looks forward to working with the Government on the next stage of the review to ensure changes that benefit residents,” said Carol Shepherd.
