Slow Progress on Retirement Village Reform
Though the government’s slow review of the 20-year-old Retirement Villages Act is set to roll over to the next parliamentary term in 2027, its presence in the Beehive has brought cases of substandard elder rights and living conditions into the foreground.
The Ministry of Housing and Urban Development received more than 11,000 submissions when the review process began in August 2023. From them, three key areas were identified.
Key Areas of the Review
“These areas include updating the Act to bring it in line with sector best practice, strengthening transparency such as introducing a plain language version of the Code of Practice, and 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,” Associate Minister for Housing Tama Potaka says.
“The objectives of the review remain the same, including ensuring adequate consumer protection, balancing the rights and responsibilities of operators and residents, and ensuring the ongoing viability of the sector,” he says.
The Growing Need for Reform
“New Zealand’s population is ageing, and it’s essential we have a range of housing options available for older people,” Seniors Minister Casey Costello says.
“Retirement villages play an important role in this mix, and around two-thirds of them also provide aged care facilities, so we need to continue the review and to get it right.”
Residents Speak Up
One such case is Rolleston’s Boulevard Village, which was the subject of media coverage by The Press and Stuff at the start of this year.
The Retirement Village (RV) Residents Association supports 12,500 residents nationwide. It told media that it received more complaints about the Canterbury retirement village than any other entity, including major providers such as Ryman Healthcare.
Chief executive Nigel Matthews told Stuff that between April and September 2023, The Boulevard “had approximately 60 residents at the time, but had three times the average number of complaints. On a per head basis, they had approximately six times the number of formal complaints to the village complaint average.”
He says that complainant stories like those from The Boulevard are all too common. The current complaints process must change, as it doesn’t give residents the ability to address their issues adequately and is unfairly weighted in the operator’s favour.
Calls for Further Action
Consumer NZ and the RV Residents Association are concerned that retirement villages are ignoring Commerce Commission warnings about unfair resident contract terms and call for the ComCom to take further action.
Following complaints, the ComCom warned village operators of potential Fair Trading Act breaches.
Unfair Financial Burdens on Residents
One potential case is retirement village operators charging residents for the maintenance and repairs of chattels or fixtures within their units despite residents not having ownership rights over their units.
“Even though residents don’t own the units, chattels or fixtures, they’re often responsible for the cost of maintenance, repairs and replacement of everything from heat pumps and blinds to light switches and power sockets,” Consumer NZ chief executive Jon Duffy says.
“We think that’s completely unfair. Responsibility for repairing, replacing and maintaining operator-owned fixtures and chattels should fall on the retirement village.”
A Resident’s Struggle for Fair Treatment
Di Sinclair is RV Residents’ national vice president and complaints coordinator. She says the organisation receives ongoing complaints from Metlifecare residents about these bills.
Metlifecare currently owns and operates 43 retirement villages nationwide.
“In one case, an elderly woman was charged $562 for a draft strip to close up a gap between her garage door and some uneven concrete outside.”
She says that under the Retirement Villages Code of Practice 2008, Metlifecare would be responsible for fixing the problem as it was initially caused by the concrete beyond the woman’s villa.
In the end, the resident fought the charge. However, the operator only paid half the repair cost, and the resident reluctantly paid the rest.
“The operator must keep the building and equipment in good working order. A garage door, particularly one attached to a unit, is part of that obligation,” she says.
“Residents are afraid of repercussions if they ‘make a fuss,’ and they often feel they don’t have the emotional or physical strength to get into conflict with village management. It’s not fair that they have to rely on advocates to enforce their rights,” she says.
The Act’s Future
The New Zealand Labour Party says the National Government is treading water on the review.
“Timelines for review set by this Government are unacceptable and will leave residents in the lurch for years,” Labour seniors spokesperson Ingrid Leary says.
“Nearly all the background work has been done. Leaving any changes to the Act to the next parliamentary term will see many of the current residents passed on. Time is on no one’s side. Delays will only benefit the operators, not the residents.”
Progress Remains Slow but Steady
RV Residents say progress is “pleasing but slow.”
“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,” says Carol Shepherd of the RV Residents Council.
“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.”
