The Retirement Villages Act 2003 review announcement by the Government is a step in the right direction, said the Retirement Villages Association.

Associate Housing Minister Tama Potaka and Seniors Minister Casey Costello have announced the coalition Government will focus on updating the Act to bring it in line with sector best practice and strengthening transparency such as introducing a plain language version of the Code of Practice.

The Government is also looking at changes to increase protections for residents, for example restricting operators from passing on insurance excesses to residents if the damage was not their fault. 

The Ministers have agreed the next steps of the review should focus on three key priority areas.

These involve receiving advice on maintenance and repairs of operator-owned chattels and fixtures, managing complaints and disputes and options for incentivising or requiring earlier capital repayments when residents move out of a village. 

“We’re pleased the Government has stated it is committed to balancing the rights and responsibilities of operators and residents, and ensuring the ongoing viability of the sector,” said RVA executive director Michelle Palmer.

“The key priorities the Government has identified align with the sector’s commitment to improving the way the retirement village model works for both operators and residents."

Palmer said New Zealand’s retirement villages’ sector has been proactively rolling out the most significant reforms in a generation for the past three years under its Blueprint for Improvement.

“These include ensuring operators re-license vacant units as quickly as possible, providing greater clarity/disclosure around moving into care, stopping weekly fees once a unit is vacated, paying interest on outstanding capital sums after nine months, and more clearly defining chattels, repairs and maintenance responsibilities," said Palmer.

“Around 75 per cent of villages have already voluntarily adopted many of these industry reforms and our ambition is to bring all villages up to these same exacting standards, lifting the bar for the entire sector."

Palmer said the RVA agrees improving the complaints system is possible.

"Currently there are multiple channels to make complaints and that can be confusing. The industry is open to looking at alternatives if there is sufficient evidence they work.

"Ultimately, village operators want certainty and clarity so they can continue to meet the needs of the 53,000 older New Zealanders living in retirement villages, and the 130 people choosing to move into village communities every week.

“We look forward to continuing to work with village operators, the Government, the Ministry of Housing and Urban Development, the Retirement Villages’ Residents Council and the Retirement Village Residents Association.”