The Villager
Issue 3 - September 2011
Welcome to the latest edition of the Villager, a quarterly bulletin providing important information for those involved with retirement villages.
This issue includes information on:
If you have any comments or suggestions for The Villager, or would like to contribute an article, email info@dbh.govt.nz.
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Retirement Villages Act 2003 Monitoring Project: Residents’ Perspectives
One of the main findings of the Retirement Commissioner’s monitoring project is some Retirement Village operators need to improve the way they communicate with their residents.
This year the Commissioner’s Retirement Villages Act 2003 Monitoring Project examined the Act from the perspective of retirement village residents. Residents were asked about how well they understood the Act and its implementation.
Retirement Commissioner Diana Crossan says the report found that village operators need to ensure that potential residents understand exactly what they are signing up for. Ms Crossan says the report found that often residents move to retirement villages primarily for the security they offer, yet they can become anxious about the future of their villages and how future changes may affect them.
“Most retirement village operators communicate really well and implement the Act properly. Their residents are very happy and do feel secure. But in villages where the Act isn’t implemented well, the opposite can be true.”
Ms Crossan says among the concerns for some residents were fee increases, reductions in services, failure to provide planned amenities and a lack of consultation over changes in the operation or ownership of the villages.
“While there is a requirement for intending residents to get legal advice before they sign up, the report found that some residents were unclear about the meaning and implication of their contract.
“Clear communication is vital in helping give residents and their families greater peace of mind,” she says.
Key recommendations supported by the Retirement Commissioner include:
- Develop and implement guidelines for consultation for both operators and residents.
- Clarify the scope of the Statutory Supervisor role and amend the appointment and commissioning of those services.
- Key documents need to be comparable between retirement villages and written in plain English.
- Develop in consultation with operators and residents an industry standard and best practice for complaints, mediation and disputes procedures which includes recording all complaints.
- Review the interface between the Act and other tenure legislation to provide guidance particularly for those in unit titles.
The report is part of a five-year monitoring project by the Retirement Commissioner who is required to monitor the effects of the Retirement Villages Act, the regulations and the Code of Practice. The Commissioner will be discussing these recommendations with the Minister for Building and Construction.
To view the report go to The Retirement Commission website.
For further information contact Meredith Keys (027) 203 3172
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Retirement Housing Package Offered in Christchurch
The Retirement Villages Association has announced re-housing assistance packages for the elderly affected by the closure of Kate Sheppard Gardens (KSG), which was virtually destroyed by the Christchurch Earthquake. RVAExecutive director John Collyns said the organisation was committed to looking after residents of its member villages. “We feel deeply for the predicament of residents of the Kate Sheppard Gardens. It’s a tragic situation for everyone, including the owner,” he said. The various offers of financial accommodation range from discounts on units, and loans which in some cases may be interest-free, through to waiving other charges or the facility fees, to allow residents to move in. The offer from each village will differ according to their circumstances, and the circumstances of the resident. Each package will involve a significant cost for each village, so they are only being offered to residents of Kate Sheppard Gardens. “It’s good to know that our whole organisation stands behind each member village. Members across the country have come up with great offers for the residents.
“The major problem is that cash payout on their investment in the village will be delayed by complex insurance processes, and may be less than they need to enter another village under market terms. Therefore, the most useful things to offer at the moment involve lowering barriers to getting them into new units,” Mr Collyns said.
He said the Kate Sheppard situation had exposed a gap in the current Government-regulated code. “Kate Sheppard Gardens and the contract it operates under is fully compliant with the Retirement Villages Act 2003 and the Code. “The heart of the problem is that the code-compliant contracts that give residents peace of mind in normal circumstances do not give them peace of mind if their village is destroyed and not rebuilt. “So the Association is talking to members, Government, and insurers about ways of giving them that peace of mind,” he said.
Ex-residents can call: 0508 997 090, email: info@retirementvillages.org.nz
Contact John Collyns on 021 952-945 or 04 499-0449
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Changes to Retirement Village Registration Fees
Updated fees for retirement village registration came into effect on 11 August 2011.
The changes will be positive for most retirement villages as the annual return fees for all retirement village operators will go down. The land transfer component of the fees will increase to remain consistent with fees under the Land Transfer Regulations 2002.
The purpose of these changes is to ensure the fees continue to reflect actual administration costs. This is the first time the fees have been reviewed since registration of retirement villages was introduced in 2007.
The following changes will apply:
- The annual return fee has reduced to $400 — $1,300, depending on the size of the retirement village. The new fees are better aligned to the actual costs of administering the returns, now that the initial costs of establishing the register have been met.
- The registration fee has become a standard one-off fee of $900 for registering new retirement villages, regardless of size.
- The land transfer fee has increased from $54 to $181. This keeps the fee aligned with current fees under the Land Transfer Regulations 2002. This fee is paid at registration and thereafter on an ‘as required’ basis only.
The fees include GST, and more detailed information about the changes is on the Department’s website.
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