Retirement Villages Code of Practice 2008
7 October 2008
The Retirement Villages Code of Practice 2008 provides residents and intending residents of retirement villages with better consumer protection in line with the Retirement Villages Act 2003. The approved Code of Practice may mean that operators need to adjust their business models to meet the first set of national minimum requirements for retirement villages.
The approval of the Code of Practice brings the Retirement Village Act 2003 fully into force. The Act focuses on consumer protection requiring operators to provide full disclosure of their retirement village to intending residents. The protections offered apply to both existing and intending residents.
The Code of Practice will take effect on 2 October 2009. It outlines the rights and obligations of retirement village residents and operators. It contains information that improves consumer protection, customer awareness and provides a minimum standard that all retirement village operators in New Zealand must attain, or exceed.
One important aspect of the Code of Practice 2008 is the distinction between existing and intending residents in relation to specific clauses. The distinction has been introduced to discourage operators passing on any additional costs that they incur from changes to the existing residents contracts to intending residents.
The Code of Practice was developed after a 9-week consultation period. The Department of Building and Housing received 299 submissions from residents, residents’ committees, retirement village operators, the industry association, statutory supervisors, lawyers, and groups representing older peoples’ interests. The resulting Code of Practice incorporated recommendations from the consultation as well from Cabinet.
Cabinet is satisfied that the Code of Practice 2008 covers the requirements of the Retirement Villages Act; is consistent with the Code of Residents’ Rights; and reflects the diversity of the retirement villages sector.
Cabinet has asked the Department to look at whether exemptions to a clause or clauses in the Code of Practice are necessary to help some operators meet the requirements set out in the Code of Practice. If you have views on this, you can send these to the Department through info@dbh.govt.nz