There is an opportunity for Parliament to work in a truly MMP environment says Kevin Burrows.
Mr Burrows chairs the Kāpiti Coast District Council Older Persons Advisory Group which is calling on all
Members of Parliament to support the Retirement Villages (Fairer Repayments) Amendment Bill, introduced by Ingrid Leary.
MP Leary’s private member’s bill addresses long-standing concerns from retirement village residents across New Zealand.
“The bill will not affect the government’s finances or the coalition’s supply and confidence agreement. This gives an opportunity for political parties to act in a genuine MMP environment by voting for legislation that will significantly benefit retirement village residents,” says Mr Burrows.
He says the Bill seeks to balance power between residents and operators, giving retirees more control over their finances. If passed, it could be a significant change for the over 55,000 residents living in retirement villages nationwide.
There are currently eleven retirement villages operating in the Kāpiti Coast region, with another two in development. The total number of residents across all villages is likely to exceed 2,000, depending on occupancy rates and care levels. The proposed bill is expected to have a significant impact in Kāpiti.
The bill would establish a mandatory repayment period, requiring operators to return the capital sum to exiting residents within three months of vacating a unit. At least 10% or $50,000 (whichever is greater) must be paid within five working days of exit.
If operators do not meet this timeframe, they will be liable for payment from the date the unit was vacated. Operators who share 50% or more of capital gains may apply for an exemption from the repayment period.
“Many residents and their families experience financial stress due to indefinite delays in receiving refunds after leaving a village. In a national survey, over 89% of respondents supported receiving their repayment within three months,” added Mr Burrows.