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.

Background 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 8 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.

We acknowledge the good work done by the Retirement Villages Residents Association (RVRA) in representing residents. It is the largest residents’ membership association in New Zealand. But we also note that only one in five residents belong to this association.The Council is not a membership organisation and does not compete with the RVRA. But we believe there is room for another organisation that can be an additional voice for the concerns of residents. In particular, the council aims to represent their views to policy-makers. Often those views will align with the RVRA. Sometimes they will differ.

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.

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