The Government plans to introduce a bill to Parliament in the middle of next year to strengthen protections for retirement village residents and their whānau.
The planned changes to the Retirement Villages Act would give senior New Zealanders deserve clarity, fairness and straight-up information when they move into a retirement village, Associate Housing Minister Tama Potaka said
“For too long, residents have faced uncertainty, especially when moving out and waiting for their money to be repaid. We’re fixing that. These changes put people first by setting clear expectations and making the whole system more transparent,” Potaka said
Progressing the review of the Retirement Villages Act is part of the National-NZ First Coalition Agreement and the Government’s reforms provide a pragmatic and balanced response to key issues within the sector, Seniors Minister Casey Costello said.
“The changes we are making will address concerns around fairness and provide certainty to residents and their families.”
The reforms would make legal documents easier to understand, require operators to be upfront about what they offer, and set clear responsibilities for the chattels they own.
A new independent disputes scheme would also give residents a simple, accessible way to resolve issues.
A major focus was on reducing the stress families face when a loved one leaves a village, Potaka said.
“These steps deliver that certainty and strengthen the rights of residents, while supporting the sector to grow and innovate for the future.”
Key improvements include: a process for former residents to apply for early access to funds in situations of specific need; interest being paid after six months if a unit remains unlicensed; repayment of funds no later than 12 months after a unit is vacated; and weekly fees and deductions stopping immediately when a resident vacates.
“These are practical, balanced reforms that reflect the feedback of residents and operators,” Potaka said.
The select committee process next year would provide another opportunity for residents, families and operators to have their say.