Retirement village residents get more security

People living in retirement villages will have greater financial and lifestyle security under new regulations announced today.

The measures include the introduction of a formal disputes resolution process, greater disclosure of information by village operators, and statutory supervisors with watchdog roles.

Building issues Minister Clayton Cosgrove said the provisions were focused on protecting residents.

"For the first time, all residents will have a mechanism for resolving their disputes with village owners and managers, and a clear voice," he said.

"Often residents' only option has been court action, which can be out of reach for those on fixed incomes."

Mr Cosgrove said the dispute resolution provisions come into force at the beginning of next month.

"From that date, every retirement village must have a way of dealing with complaints," he said.

"Disputes that cannot be resolved internally will have access to a new independent Disputes Panel."

From May 1, 2007, potential residents of retirement villages must receive full disclosure of information from operators.

There will be a "cooling off period" of 15 working days in which an intending resident can withdraw from an occupation agreement.

"This is about informed consent and protecting the best interests of older New Zealanders entering complex contractual arrangements," Mr Cosgrove said.

New villages will have to register from May 1 next year, and existing villages by November 1 next year.

Mr Cosgrove said the sector had been largely unregulated and there were no firm figures on how many villages existed.

Best estimates were about 400.

"This is too important a sector to run on an ad hoc basis. These changes were borne of real concern at practices in some parts of the sector," Mr Cosgrove said.

"However, I am pleased to say that good operators are already meeting many of these standards."

The Retirement Villages Association (RVA) welcomed the minister's announcement and said it was pleased all residents would be equally protected.

The regulations would strengthen the way villages were operated and residents would have a higher level of protection, said RVA president Norah Barlow.

Not all retirement villages are members of the RVA, but the regulations will apply to all villages.

- NZPA