The Code of Practice 2008 for retirement villages was approved by the former Building and Construction Minister Shane Jones. The Code sets out the rights and obligations of operators and residents. It provides a set of minimum standards that all retirement village operators must meet. The Code came into effect on 2 October 2009, one year after its notification in the Gazette.
The Code of Practice 2008 was developed after a nine week consultation period. Three hundred submissions were received from residents, operators, residents’ committees, the industry association, statutory supervisors, lawyers and groups representing older peoples’ interests. The submissions were independently analysed by the Retirement Commission and the Department of Building and Housing.
The Retirement Commissioner is required under the Retirement Villages Act 2003 to make recommendations (142 KB,PDF) to the responsible Minister on the proposed Code and the submissions.
The Commissioner’s first preference was to see the planned review of the Act given urgency, and that part of this work include reviewing the Code with the potential of integrating it as a regulation of the Act.
The refurbishment clause, which most submitters commented on, is now more complex than it was in 2006. There are now a variety of arrangements around this issue in contracts since the development work on the original Code of Practice. Although the Commissioner preferred the clause as set out in the 2006 Code, a solution was sought which addressed the concerns of residents. These included residents possibly being required to pay twice for refurbishment, and a lack of transparency and clarity in the refurbishment arrangements made between operators and residents. Through education and monitoring, a solution that provides a fair result for residents and operators has been achieved.
The Code of Practice sets out minimum protections for residents on the following:
Intending residents must be given a copy of the Code of Practice before they sign an occupation right agreement. The village operator must also give a copy to any resident who asks for one.
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