RVA Member communication on RVR ‘United For Seniors’ Campaign
You may have seen the launch of the United for Seniors campaign by the Retirement Village Residents Association (RVResidents).
As part of the campaign, the RVResidents is asking the Government to reform the Retirement Villages Act, circulating a petition and publishing resident stories online. You can find the RVR’s information to media outlets here.
It is important residents do not feel pressured to sign the RVResidents’ petition – please let us know of instances where this may be the case, and we can take the appropriate steps.
We’re disappointed the campaign features inaccurate or misleading claims and misinformation, and we are responding to media enquiries on a reactive basis. This has included an interview on RNZ’s Nine to Noon programme.
We will also continue to promote residents stories via the retirementlife website.
The RVA is happy for members to refer any media enquiries on the campaign to us for comment on your behalf.
Our position is clear.
More than 53,000 older New Zealanders live in retirement villages, with more than 130 Kiwis moving into village communities every week
Independent research shows the vast majority of residents are happy with retirement village living. Village residents tell us they value the companionship, social connections, safety, and security.
The retirement villages industry is already rolling out the most comprehensive voluntary reforms to the sector in a generation
This has included:
- appointing an Independent Member to the RVA’s Executive Committee, so the perspectives of older people are heard
- supporting the establishment of a Residents’ Council to serve as an independent body representing the collective interests of village residents
- a commitment to ensuring operators re-license vacant units as quickly as possible
- addressing any ‘unfair’ clauses in occupation right agreements
The RVA supports some regulatory changes, including to the existing Code of Practice. This includes providing greater clarity/disclosure around moving into care, stopping weekly fees and accruing of DMF once a unit is vacated, and more clearly defining chattels, repairs and maintenance responsibilities
We also support exploring insurance cover and stopping capital loss clauses when there’s no corresponding sharing of capital gain
One of the great benefits of the current legislation is that it enables flexibility and competition between operators, so they can develop business models that meet current and future residents’ needs. It’s essential that flexibility to evolve new models for a new generation is maintained.
Consequently, interventions such as a standard ORA, limiting the DMF or retrospective changes such as stopping weekly fees on vacation or requiring higher building standards are not viable.
Mandatory buy-backs will have negative unintended consequences, stifle innovation and reduce choices available to residents.
Requiring operators to hold cash or a line of credit to be able to pay residents out within any specific time frame would lead to significant additional costs and possible business failure, particularly for smaller regional village operators. Instead, the RVA supports an option for operators to pay interest on the outstanding amount after nine months.
The current complaints and disputes process works well, however the industry is open to looking at alternatives if there is sufficient evidence they work.
Please let us know if you have any questions.