Retirement Villages Policy
Policy Mission
To ensure that all people living in retirement villages, registered and unregistered, receive fair and just treatment.
Problems the Policy Addresses:
- Lack of understanding by residents regarding their commitments when signing retirement villages’ occupation rights agreements (ORAs).
- Appointment of Statutory Supervisors by Village Operators rather than by an independent authority.
- The inability of village residents in some regions to claim rates rebates even if they qualify financially.
- The need for independent Villages Ombudsman to consider issues that fall outside the role of Statutory Supervisors.
- Fixtures and fittings supplied by the resident currently these become a gift to the Operator when the unit is vacated.
- Residents get no capital gain when their unit is sold while there is a liability for capital losses.
- Residents continue to pay weekly fees for at least 6 months when the unit is permanently vacated.
- The need to assist and to receive advice from other Groups involved with Retirement Villages.
- Various types of retirement villages, e.g. registered or unregistered, operate under differing rules.
- Disputes procedures in retirement style villages are not the same as those applying in registered retirement villages.
Policy Solutions:
- Have a Plain English summary of all agreements.
- The appointment of independent statutory supervisors.
- The inclusion of all residents in the rates rebate scheme providing they qualify financially.
- The appointment by Government of an independent Villages Ombudsman.
- The value of fixtures and fitting supplied by an ORA resident be added to the value of their unit at the time the unit is vacated.
- Mandatory inclusion in all new ORA contracts, where the contract contains a Capital Loss clause, that a Capital Gain clause be included.
- The inclusion in all ORA contracts of a clause negating the requirement that Residents and their successors continue to pay weekly fees when their unit is vacated.
- Where appropriate maintain digital and voice communications with the RV Association, RV Residents’ Association and the Retirement Commissioner’s office and any others that come to the Group’s attention.
Policy Goals:
Grey Power will work to achieve the following:
- Plain English agreements complete with simple 1-2 page summary of conditions and requirements. – Advocate for legal advisors to convey the residents’ commitments before signing and for the Statutory Supervisor sign off the legal advisor’s actions.
- Statutory Supervisors independent or appointed by the Retirement Commissioner and accountable to him/her.
- All village residents in ORA residences included in the Government’s rates rebate scheme providing they qualify.
- Appointment of an independent Villages Ombudsman
- Change in legislation for residents to be reimbursed for the fixtures and fittings they supply and are attached to the unit that is owned by the operator.
- All new ORA contracts include a capital loss clause also contain a capital gains clause.
- All ORA contracts include a clause that weekly fees cease upon the unit being vacated.
- Regular communication by the group Chair with the nominated organisations where appropriate.
- Unregistered villages have disputes procedures similar to Registered Retirement Villages.