Source: Retirement Villages’ Residents’ Council
Long awaited reforms to the retirement village sector will better protect residents and their families who have sometimes waited too long to be paid out for vacated and unsold village units, says the Retirement Villages’ Residents’ Council.
The reforms announced by the Government today include mandatory payment of capital on unsold or vacated units at 12 months, interest payable on capital after six months, clear rules on chattels – ‘you own it, you fix it.’ and a new independent complaints scheme. These are areas the Council has strongly advocated for.
“These changes are a welcome step in the right direction. They strike a better balance, being fairer for residents and village operators alike,” said Council spokesperson Carol Shepherd.
“As representatives of residents of villages across New Zealand, we would have liked the repayment of capital to have been six months, not 12 months.
“We also acknowledge that some residents who are in villages today will be upset that the new regime will not apply to their contracts.
“However, overall, these reforms strengthen protections for residents, particularly future residents, and their families without undermining the ability of operators, large or small, to invest, maintain quality, and provide a range of accommodation options for older Kiwis.
“It’s critical to have a sustainable village industry to meet the needs of our growing elderly population and these reforms recognise that village operators vary from the very large to the very small, run by charities and trusts. We need all kinds of operators that can thrive across New Zealand.
“The reforms also deal with other pain points for residents. For example, interest accruing at six months on capital, clarification of who fixes chattels, and no fees to be paid once units are vacated, coupled with an independent complaints resolution scheme.
“It’s important that residents and their families who make such a significant investment in their twilight years can access a low cost, independent process to resolve issues – this will reduce stress and speed resolution.
“All up the reforms mean residents in the future can look forward to a more consistent approach to how their interests are managed by village operators no matter where they live – that’s a good thing.
“Residents tell us what they need so we encourage the Minister and officials to work with the Council to co-design the complaints scheme, a standard ORA template, and a chattel-ownership framework.
“We need a regime that is fairer for residents and one that also ensures we have a sustainable industry – the quicker the law changes pass through Parliament the better for all,” said Shepherd.
About the Retirement Villages’ Residents’ Council
Who does the Council represent?
The Council is a fresh independent voice to advocate on behalf of retirement village residents.
Who are the Council members?
The Council currently has 7 members who were nominated by their villages and / or residents and selected by the independent chair. They reside in various retirement villages, both large and small, throughout the country and bring significant experience to the council, many having served or are serving on the residents committees of villages.
Why was the Council formed?
The Council aims to act as an independent body representing the interests of retirement village residents.
How is the Council independent when funded by operators?
The Council is funded by the Retirement Villages Association (RVA), which represents most of the operators, developers and managers of retirement villages throughout New Zealand. However, the RVA has no say in anything that the Council does, including its views on policies or how it spends its budget. It does not attend meetings, does not receive agendas or minutes and has no influence over how the Council’s budget is applied. This independence is underpinned by the Council’s terms of reference.
