The Minister for Building and Construction has given notice of variations to the Retirement Villages Code of Practice 2008.
The variations to clauses 22, 47 and 54 will replace the current Code of Practice clauses 22, 47 and 54 from 14 October 2013.
The variations come into force on 14 October 2013.
In summary, a retirement village contains two or more residential units to provide residential accommodation and/or services or facilities predominantly for people who are retired – and those people agree to pay a capital sum to live there. Note that a ‘capital sum’ can also mean periodical payments, if the payments are substantially more than would be paid to cover rent for such services or facilities.
Residents ‘purchase’ a right to occupy, or an occupation right agreement. The purchase is based on a capital investment and is a form of tenancy.
The Department of Building and Housing assumed responsibility for the Retirement Villages Act on 1 July 2005. The Department’s responsibilities include the promotion of education and publication of information about retirement villages. These functions were previously undertaken by the Retirement Commissioner. The Department agreed with the Commissioner to undertake these functions in August 2007.
The role of the Retirement Commissioner is to monitor the effects of the legislation and Code of Practice, when in force, and the establishment and oversight of the disputes panel system.
The Registrar for Retirement Villages is located in the Companies Office in the Ministry of Economic Development. The Registrar of Retirement Villages is responsible for registration-related matters.