It has been 20 years since the Retirement Villages Act came into force (file picture). Photo: 123RF
The government has proposed changes to the Retirement Villages Act for the first time in 20 years.
Associate Minister of Housing Barbara Edmonds said change was vital as the sector grew to accommodate New Zealand's ageing population.
"The sector has grown substantially over the 20 years since the current legislation came into force," she said in a statement.
"Over 450 retirement villages currently house 48,000 people, with numbers expected to reach over 81,000 by 2033."
The discussion paper is open for consultation until 20 November, when the review will move into its next phase.
Among the proposals were requirements for operators to "meet the direct costs of maintaining and repairing operator-owned chattels and fixtures", as well as "replacing the current dispute resolution scheme" and "stopping fees after a unit is vacated, or shortly after".
"The proposed changes strike a balance between fairness for consumers and making sure the sector is supported to meet future population demand," Edmonds said. "With exponential growth expected in the sector, we need to make sure it's commercially sustainable."
She encouraged residents, operators, community groups and stakeholders to give feedback.
The Green Party was supportive of Edmond's announcement, but urged the government not to be distracted by industry interests.
"Successive governments have enabled an aggressive for-profit model which dominates many retirement villages. This has failed to centre the wellbeing of residents who do not have the same rights as tenants and we need to do better," Green Party senior citizens spokesperson Ricardo Menéndez March said in a statement.
"Recently, residents have highlighted the lack of access to getting back their deposits when they leave their residence, unclear contracts that trap them in unfair deals, and poor quality of facilities," he said.
"The Greens believe that because the private sector will not voluntarily deliver secure, affordable housing we need stronger regulations to ensure retirement villages provide at least 25 percent of their units as affordable rentals."
Retirement Commissioner Jane Wrightson welcomed the proposals.
"I am really pleased to see the review progress to this consultation phase," she said in a statement.
"The proposed changes tabled in the discussion document address many of the issues we have raised, along with important others."
Wrightson said the sector was "by no means broken," but reiterated that the Act had not been reviewed in 20 years.
"It's important for residents, their families and operators that sector-wide best practice is clearly set out in legislation," she said.
An investigation by the Retirement Commission earlier this year found a variety of different experiences, "with some residents feeling informed and supported, and others feeling rushed and taken advantage of".
But Wrightson acknowledged that recent voluntary changes within the sector had improved the situation for many residents.
The Retirement Villages Association, an organisation representing village operators, also welcomed the proposal.
In a statement, its executive director John Collyns said it was an important and positive contribution to the industry.
"Ultimately, the discussion paper preserves the integrity of the successful retirement village model," he said.
"Retirement village operators are the only organisations in New Zealand building aged care facilities and that's a responsibility we take extremely seriously."
