Retirement villages

There's some protection for older people through the Retirement Villages Code of Practice but contracts still need to be carefully checked. The Chch 'quakes also exposed Code flaws.

The Retirement Villages Act, regulations, and Code of Practice set the framework for relationships between residents, intending residents, operators and supervisors, with some fish-hooks: 

"Some provisions were a step backwards from the earlier Code of Practice," Age Concern National President Liz Baxendine said.

The Code sets national minimum standards that all retirement village operators have to meet.  We're calling on retirement village operators to do better than these minimum standards.

Age Concern wants to see greater commitment to helping prevent elder abuse and neglect, and to have the Code's protections offered to all residents irrespective of their length of tenure.

We advise all retirement village residents and anybody considering moving into a Retirement Village to request the Code from the operator and to read it carefully, and in consultation with their legal advisor. The Code will prevail over any less favourable provisions in residents' contracts.

We are disappointed that there is not better consumer protection in some areas.

Some residents still have to pay the full costs of having their units refurbished if they have to move out. There's still nothing to stop operators ripping a three-month-old carpet out and charging for a new one. There is a real need for clarity on the definitions of ‘as new’ and ‘fair wear and tear’.

Potential residents and their families should negotiate for more favourable conditions. They should also ensure that they understand fully the implications of the Occupation Right Agreement they're being asked to sign.

Care services

Some retirement village residents have contracts stating that they can only access ‘in-house’ personal care - which they then must pay for, even though they may have been eligible for state-funded home support services.

If you're thinking of moving into a retirement village you should ensure you understand fully the implications of the Occupation Right Agreement you're being asked to sign. Ask your legal adviser whether the contract will affect your right to access government-funded services – if the answer is yes, you may wish to negotiate these clauses out of the contract before signing.

Comment

Age Concern New Zealand has received numerous calls from unhappy residents who feel trapped by the conditions of their contracts. The fact that 300 submissions were received when the Act was last reconsidered may be an indication of the level of concern  and discontent in retirement villages.

Update: Kate Sheppard 'quake exposes inadequate Code protections 

Age Concern New Zealand is sympathetic to the plight of the residents of Christchurch’s earthquake-wrecked Kate Sheppard Retirement Village. We expressed our concern to the Retirement Villages Association and the Department of Building and Housing about the situation they find themselves in.

Residents need to know where they stand without delay. Resolution must be speedy and fair so that residents can rebuild their lives in whichever way they choose. We commend the Retirement Villages Association for putting together an assistance package for Kate Sheppard residents.

It has become clear that the Retirement Villages Code of Practice does not provide consumers with adequate protection in an event such as this. Age Concern New Zealand is advocating for amendments to the Code. At the same time, we are challenging retirement village operators to take immediate action to increase the consumer protection in their Occupation Right Agreements for existing and future residents.

Resources

> VISIT the Department of Building and Housing for the Retirement Villages Code of Practice 2008

> VISIT the Office of the Retirement Commissioner for information on their monitoring of villages

> READ our submission on Retirement Villages Disclosure Statements

Photo by Marcus Deretten