Retirement village residents will not have to wait as long to get their money back when they leave their units under proposed Government changes, but a local spokesperson says it does not go far enough and is morally wrong.
Tasman region registrar for the Retirement Village Residents Association of NZ, Garry Thompson, says there are positives in the Government’s proposed changes to retirement village rules, which have yet to go through a full legislative process.
However, he says the Government seems to be more concerned with the perceived problems relating to the owner-operators of retirement villages, rather than the plight of the residents.
Under the proposal, villages will be required to repay funds no later than 12 months after a unit is vacated. Some residents and families have complained about long waits for their money.
“The suggestion that a time limit of 12 months for returning the money when residents leave a village for whatever reason, is totally unacceptable and morally wrong.
“Normally when a resident leaves, apart from death, they do so to go into special care which is not always available at the village where they have resided. Special care can be very expensive and a prolonged payout procedure would, in most cases, place unnecessary financial strain on the individual or their family if they had to wait twelve months for a payout.”
Garry says the Retirement Village Residents Association has always mandated for a payout no more than 28 days. It would be “fair and just” if the requirements around many of the financials involved in the various Occupants Rights Agreements, were aligned to the Tenancy Act, he says.
He says, most retirement village operators have made considerable sums of money over the years by utilising the existing system to their advantage.
He dismisses claims that changes could lead to financial ruin for some villages and suggests they need to adjust their business model instead. Villages need to allow for the occasional payout to residents exiting their village and should put sums aside to do that, he adds.
“In the majority of cases, the operators have and are making a considerable capital gain when the accommodation is relicensed. While this is fair enough, it also provides for ways and means of meeting payouts to future residents who exit the village.
“It is important to understand that with few exceptions, we all enjoy living in a retirement village. But it is not about happiness – it is about fairness.”
He says the provisions of any updated Retirement Villages Act must be fair and equitable to the residents.
