Retirement Village Definition Amendment Urged

Retirement Village Definition Amendment Urged - Savvy retirement village residents are urging resident representative bodies across all states to push for a change to the legislated definition of a retirement village.

Concerns come from the fact that various State legislation frameworks require an in-going payment to be made before a lease/licence of occupancy is permitted and that this payment is prohibited from being rent.

Residents believe this to be a key factor in the ability of an operator to camouflage the full cost of the conditional residential accommodation until exit from the village and protects the operator from market forces such as market driven residential rental costs. One examination ( renting can be cheaper than a retirement village ) has shown that the full weekly cost of accommodation in a retirement village can be almost twice the cost of simply renting a commensurate property within the general community.

The following letter was sent by a village resident to the Retirement Village Residents Association of NSW.

"Interstate* Retirement Village Contracts - Implications.
The definition of a retirement village in the Victorian Retirement Village Act 1986 produces many of the problems your state members have. That definition called for payment of an “ingoing contribution” before a lease would execute. The definition of ingoing contribution calls it a “donation” and in addition requires that the donation “does not include rent”.
Those two definitions together mean that lessees provide an interest free loan of the nominal value of the unit, for the duration of the lease. That is tantamount to buying the unit, but not getting ownership.
Very, very, very few lessees, resident committees, residents’ advocates or legal advisers appreciate the full implications of that combination of definitions. Even the relevant legislative oversight and village resident advocacy bodies in Victoria have struggled understanding the full implications. The main effects are:-
The resulting contracts prevent free market competition because there are so many variables in the costing that it is impossible to compare daily, weekly or monthly rentals between villages
Lease rates vary as the duration of the contract lengthens.
Contracts are so convoluted as to be incomprehensible for lessees, or experience shows, their legal advisers.
Costs are not calculated or disclosed until a couple of months after the contract terminates which shows the Act fails its stated purpose “to clarify and protect the rights of persons who live in, or wish to live in retirement villages”
The market is artificially limited, and restricted by the definitions, by means of the contracts.
The definitions produce contracts that make the Victorian Act not fit for its stated purpose of protecting lessees and prospective lessees. This applies to all Australian states and territories.
The definitions together mean the operators have the remarkable advantage of getting a cost free return on the lessees’ capital.
In the last 14 years, virtually all lessees’ complaints address the symptoms that result from the two definitions in this unique legislation, and the resulting contracts.
All of these issues would be exposed and solved with the cost rate disclosed before entry, and the only way known to do that is by requiring that all contracts must offer conventional residential tenancy with security, only then may other contract forms, such as loan lease be offered. Residential tenancy is the norm for retirement village contracts in the US."

The following graphic details the current definition basis and why the retirement village definition amendment is urged.



Retirement Village Definition Amendment Urged.



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Retirement Village Residents To Speak Up

Retirement Village Residents To Speak Up -  Residents need to speak up in the lead up to three state elections in 2018.

2018 is likely to be a pivotal year in reforms for the retirement village industry. Despite numerous government inquiries going back decades there has been a constant stream of complaints about the industry. This golden opportunity will be taken by governments or again the legislators and regulators of the industry will fail all older Australians, again!

For past, current and potential retirement village residents:-

• If you have never visited you local member of parliament, do it now.


• If you have never written to your local member of parliament, do it now.


• If you have never emailed your local member of parliament, do it now.


• If you have never posted on Facebook about retirement villages, do it now.


• If you have never tweeted about retirement villages, do it now.


• If you haven’t joined your state retirement village residents representative organisation, do it now.

https://youtu.be/bbyKPUyJsR8

Retirement Village Residents To Speak Up.



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Renovation or Retirement Home

YourLifeChoices reports:-

Renovation or retirement home. The great ‘age in place’ conundrum.

Renovation or Retirement Home - "Property Council of Australia data says the average age people move out of their house and into a retirement village or nursing home is 75 years.

Yet, the vast majority of Australians aged in their 80s and 90s are staying put. The latest census reveals that 80 per cent of people between 85 and 89 years, and half of those aged 95 to 99 years, are still living in their own home.

Sources suggest that enquiries into retrofitting private homes to make them ‘age friendlier’ are soaring , as older people put off the inevitable need to be cared for in facilities other than their homes. Home Modifications Australia (MOD.A) Director Michael Bleasdale told YourLifeChoices that, all around the nation, there is a strong trend towards “ageing in place”.

While vulnerable Australians are forced to wait for the wheels of government to grind on, many may feel tempted to take a stepping stone to aged care life via buying into or leasing from a retirement village group.

However, consumer group CHOICE cautions against moving into a village unless you are fully aware of the huge costs involved from day one through to when you leave the complex.

The group warns: “The upshot is that it's very hard to know how bad the deal is until you decide to leave the village, whether because the operator exaggerated its charms or because you just need to move out.

“At that point you might find out the undisclosed and unexpected exit costs have made your village unit a very poor investment indeed. And to rub salt in the wound, the village operators often don't have to pay you back what's left of your loan until months after you've left, and sometimes even longer.”

Another important consideration is that, over time, the village apartment you buy may eventually need modifications. At that point, it is likely you will have to pay for them yourself.""

See the full story here - Full Retirement Story

Renovation or Retirement Home.



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Village Survey Reports Both Satisfaction And Anger

The Weekly source reports:-

National Village Survey reveals strong satisfaction but also ‘anger’.

"Emotions are high in villages across the country.

The split has been about 50/50 in praise of their village and ‘we are not happy with our village’.

This is our third National Survey (2011 and 2013) and the resident climate has changed significantly.

‘Respect’ is the most common word expressed, criticising the operators and management.

A full analysis of the big issues and actions that need to be taken will be presented at our LEADERS SUMMIT 2018 at the Hilton Sydney, Thursday 15 and Friday 16 March."

Full story here:- Village Survey Reports Both Satisfaction And Anger

Village Survey Reports Both Satisfaction And Anger



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RVRA Petition For Legislative Change

The Weekly Source reports:-

"The NSW Retirement Villages Residents Association is using an online petition to lobby government for legislative change.

RVRA Petition for Legislative Change -The RVRA is using the change.org petition – (see video below) – to propose changes to the Retirement Villages Act (RVA), including existing and future village contracts, to be delivered to the NSW Minister for Innovation and Better Regulation Matt Kean.

The letter outlines the primary changes the RVRA is requesting:

• Basing exit fees on the buy-in price of units instead of the selling price;


• Changing Registered Interested Holder Clauses so departing residents receive their refund sooner;


• Reversing the decision that makes external painting the responsibility of residents; and


• Ensuring quotes for capital works are supplied and allocated against specific maintenance projects.

RVRA President Tom Gait tells us that the current petition is one of a number the organisation has planned.

“Families need to be aware that what we are talking about here is the transfer of intergenerational wealth, not to families, but into the pockets of large multinationals. Shame about elderly people not having enough money for aged care,” he said."

https://www.youtube.com/embed/Q0-olauWNNQ

RVRA Petition For Legislative Change.



 

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Petition For Retirement Village Reforms

Petition For Retirement Village Reforms - Les Scobie an eleven year retirement village resident and advocate for retirement village reform has started an on-line petition to be presented to the Victorian State Government in the lead up to the Victorian state election later this year.

You can sign the petition here - https://www.communityrun.org/petitions/retirement-village-reforms

The petition asks for:-

Implementation of retirement village reforms inclusive of the following:-

• Create greater fairness in the financial outcomes for residents for what is primarily the provision of residential accommodation.


• Total revision of the Retirement Villages Act 1986.


• Easier access to the law for residents through the appointment of an industry Ombudsman.


• Simpler contracts.


• Greater clarity as to who is responsible for ongoing costs.


• Amendment to the legislated definition of a retirement village to enable occupancy by way of a Residential Tenancies Agreement.


• Outlaw the Deferred Management Fee model where the in-going fee does not reflect a relevant discount to the asking price of a commensurate property within the general community.

Les states in his petition,

"For decades legislators have attempted to define an appropriate balance between the cost retirees should pay for the provision of residential accommodation within a 'Retirement Village'. As the industry has moved away from the Not For Profit to the Private Enterprise sector the Deferred Management Fee model is now failing Victorian retirees. The transfer of capital wealth/value from retirees to operators in these later times is now grossly excessive and obscene when compared to the cost of residential accommodation within the general community. It is time for an end to this practice and we call on all Victorian Legislators to implement the changes as outlined above in the best interest of all current and future Victorian retirees."

The petition can be signed here - https://www.communityrun.org/petitions/retirement-village-reforms



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Aged Care Reform Campaign

Aged Care Reform Campaign - Aged Care Weekly reports on a new grass roots campaign for Aged Care Reform called Aged Care Reform – A Community Campaign.

You can support the campaign by signing a petition here :- https://www.communityrun.org/petitions/urgent-aged-care-reform

"I did not start out seeking Aged Care Reform. In fact, when I told people that I wanted to pursue a career in aged care, I usually got quite similar responses across the board.

“My Mum/Dad is in a nursing home. The staff are always so busy!”

“Mum won’t let me complain but…”

“I’d rather die than ever go into a nursing home.” 

When I began to study for my Diploma of Nursing, on our very first day at TAFE, our lecturer asked us all where we saw ourselves as future nurses.

I said aged care, of course.

I told all my friends that one day I would own a nursing home. I was already planning my post-diploma study path in geriatric nursing – aged care was where I wanted to be.

Fast Forward

Fast forward three years, and I don’t work in aged care. After a decade of working as a community personal care and disability support worker, I am now an Enrolled Nurse working in acute care.

I was rapt when I secured a job as a personal care worker while I was a nursing student on my work placement in a residential facility. You couldn’t wipe the smile off of my face! I hoped it would lead to future opportunities to work as an aged care nurse.

MY DETERMINATION TO FIGHT FOR CHANGE HAS BEEN IGNITED BY WHAT FEELS LIKE CONSTANT NEGATIVE PRESS

However, I lasted just eleven short months before I was sitting in my car outside work, crying and not wanting to go inside before my shift. I didn’t sleep. In fact, I was anxious and jumpy. I was short-tempered and stressed at home because I couldn’t be at work – at least not in front of my residents. My colleagues and I vented and leaned on one another constantly, but it was still like working in a pressure cooker full of stress, about to explode. There was no one particular reason that it was like that – there was a pile of problems, and there was no one to fix them."

Read the full story here:- https://agedcareweekly.com.au/2018/01/aged-care-reform-a-community-campaign/

You can support the campaign by signing a petition here :- https://www.communityrun.org/petitions/urgent-aged-care-reform

Aged Care Reform Campaign - Website -  https://urgentagedcarereformnow.com/



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New SA Retirement Village Laws

COTA SA Welcomes “Fairer” Retirement Villages Act Reforms

New SA Retirement Village Laws - "The South Australian State Government's new Retirement Villages Act, which come into force tomorrow (January 1, 2018), represents a fairer deal for those living in retirement villages, achieving a higher level of transparency and protections, says COTA SA.

COTA SA Chief Executive Jane Mussared says there are some important and very welcome changes to the Act, which strike a much better balance between the commercial requirements of village operators and the rights of village residents.

"We welcome the statutory repayment provision that allows residents leaving a village to be paid out for their unit after 18 months, whether or not it has been relicensed," Ms Mussared said.

"This had been a major sticking point for some of the residents we have spoken to, with some waiting for years before having access to their investment. It just hasn't been good enough."

Ms Mussared says the Act will also enable residents to continue to occupy their unit while it is being relicensed.

"At the moment residents are required to move out even though the unit may be vacant.

"The new legislation and accompanying regulations provide a greater level of transparency in both contracting and day-to-day management."

Read full story here:- COTA SA Welcomes “Fairer” Retirement Villages Act Reforms

New SA Retirement Village Laws



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Let's Make Some Noise

Let's Make Some Noise - Retirement Village residents need to make some noise in the lead up to three state elections in 2018.

2018 is likely to be a pivotal year in reforms for the retirement village industry. Despite numerous government inquiries going back decades there has been a constant stream of complaints about the industry. This golden opportunity will be taken by governments or again the legislators and regulators of the industry will fail all older Australians, again!

It took the ABC 4 Corners program 'Bleed Them Dry Until They Die' and the Fairfax press to finally draw the attention of legislators and regulators and the Australian public as to deep seated issues within the industry.

Current village residents have a unique window of opportunity to 'make some noise' in those states where a state election is being held in 2018.

Future village residents also have a unique window of opportunity to 'make some noise' about proposed changes that may see them better protected against an industry so heavily criticised in 2017.

For past, current and potential retirement village residents:-

• If you have never visited you local member of parliament, do it now.


• If you have never written to your local member of parliament, do it now.


• If you have never emailed your local member of parliament, do it now.


• If you have never posted on Facebook about retirement villages, do it now.


• If you have never tweeted about retirement villages, do it now.


• If you haven't joined your state retirement village residents representative organisation, do it now.

Go ahead, make your day, make some noise.

We are Retirement Village residents and we vote!

Let's Make Some Noise.

 



 

Legislators Should Outlaw DMF Model

Legislators Should Outlaw DMF Model - Australian legislators should outlaw the retirement village deferred management fee business model.

This business model for retirement villages has a devastating effect on the capital value of the residents over the period of occupancy.  In the shorter term because of the deferred management fee heavily loaded to the early years of occupancy, in the longer term because of the combined impact of -

• the deferred management fee


• maintenance fees


• refurbishment costs


• exit costs


• devaluing effect of inflation on the balance of the in-going amount to be refunded on exit

The following table shows the differing impacts for both the resident and the village operator.



Both parties commence with a capital base of $850,000.00, the in-going amount required to obtain a lease (not ownership) of residential accommodation within the village.

The resident loses $607,227.09 in capital value over just 7 years whilst the operator gains a whopping $1,140,697.09 over the same period. This is for just one unit within the village, the combined numbers across a village of 150 units is alarming and should be outlawed by governments.

Legislators Should Outlaw DMF Model.



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Retirement Village Legislators and Regulators

Retirement Village Legislators and Regulators should have an strong understanding of the issue upon which they are about to make or amend laws. It is doubtful this is the case when it comes to retirement village laws given the grossly different financial outcomes for each party and the current high level of angst among residents, advocates and professional advisors at this time.

Few retirement village  legislators and regulators understand the chart below, they are unable to fully grasp the financial destiny of the two parties in a retirement village, the operator and the resident. This destiny for each party is determined by legislation and business models sanctioned and encouraged by successive federal and state governments. It is easy to lay blame at private enterprise but they can only operate within a commercial environment permitted by laws that are made by governments.

"Any Retirement Village Legislator or Regulator with an understanding of the financial outcomes and how they occur for both the Operator and the Resident could not earnestly write or support the meager changes to the laws proposed" RETVILLDOTNET

It needs to be noted here that in the general residential rental market the return to a landlord is generally in the order of a 5% rental return plus any capital gain. There can be limited security of tenure for the resident although laws in Victoria have just been changed to improve this situation. The house/unit/complex in which the rental accommodation is provided as in the case of  a retirement village may have recreational facilities, the resident may or may not use these recreational facilities.

For a retiree wishing to enter the general residential rental market the cost of the accommodation is known up front and the process and market dynamics are well understood by both the retiree and their professional advisors. The retiree in the residential rental market DOES NOT have to pay a substantial in-going amount equal or near the value of the property, pay monthly maintenance and administration fees, pay refurbishment and administration costs on leaving the property nor have inflation decimate the present day value of any capital base of the retiree on executing an occupancy agreement. Any capital base held by the retiree on entering this type of accommodation contract is retained by the retiree and can be invested for a financial return.

However for a retiree wishing to enter a retirement village the full cost of the accommodation is not always known up front and the process and market dynamics are not always well understood by the retiree or their professional advisors. The retiree wishing to obtain residential accommodation in a retirement village DOES have to pay a substantial in-going amount equal to or near to the value of the property, pay a non-refundable fee in the order of 35% of the in-going amount charged, loan to the operator the remaining 65% of the in-going amount at 0% interest  not to be repaid until the retiree leaves the village, pay monthly maintenance and administration fees, pay refurbishment and administration costs on leaving the property, suffer the impact of inflation over the duration of occupancy on the present day value of the 0% loan amount.

The table below show the financial destiny of the two parties in a retirement village occupancy agreement. With an in-going charge of $850,000.00 and given the general parameters as described above the financial destinies of the operator and the resident after 7 years is:-

• $1,990,697.00 for the operator (Deferred Management Fee 35% of entry price - 100% of the capital gain)


• $    242,773.00 for the resident (Deferred Management Fee 35% of entry price - 0% of the capital gain)

Any Retirement Village Legislator or Regulator with an understanding of the financial outcomes and how they occur for both the Operator and the Resident could not earnestly write or support the meager changes to the laws proposed.

Retirement Village Legislators and Regulators.



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Pensioner Poverty in a Retirement Village

Pensioner Poverty in a Retirement Village – The business models sanctioned and encouraged by Australian governments contribute to what is referred to in the industry as a poverty or financial trap.

Australia already ranks poorly in relation to pensioner poverty and sadly the business models used by the retirement village industry make a contribution toward these damning statistics.

[caption id="attachment_2420" align="aligncenter" width="957"] Pensioner Poverty[/caption]

The deferred management fee structure inherent in most models,, inflation, rising property prices, rising nursing home entry costs, village maintenance costs, village administration costs, village exit costs will over time reduce the capital value of the refundable amount due to a resident on exit from a retirement village.

This impact of the deferred fee, loss of earnings, inflation etc. on the amount to be refunded  is something many pensioners / retirees will have to deal with.  A change in circumstances without further financial resources often leaves a person in a financial position they did not envisage on entry.

Additional capital resources may be needed to meet the cost of any change in circumstances – ie: choose or need to leave the retirement village, re-enter the property market, meet the cost of a nursing home bond to enable entry into a nursing home of choice.

Many retirement village residents enter a financial trap they did not see on entry as a result of the ever decreasing value of the amount to be refunded on exit from the village.

The following table shows four different retirement village business models and the reduction in capital value suffered by pensioners / retirees once they entered a retirement village. The complexity of the business models and contracts of occupancy hide this path to 'poverty' for many older Australians.

Green - Deferred Management Fee calculated on the entry value - 100% of any capital gain to the resident
(45% of the market)                                                                                                                                                                                      
Blue - Deferred Management Fee calculated on the exit value - 100% of any capital gain to the resident.
(14% of the market) 
Pink - Deferred Management Fee calculated on the entry value - 0% of any capital gain to the resident.
(20% of the market)
Orange - Deferred Management Fee calculated on the exit value - 0% of any capital gain to the resident.
(21% of the market)



Pensioner Poverty in a Retirement Village.

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Hearing Loss & Smoke Alarms

Hearing Loss & Smoke Alarms

Read the full story here:- https://elainesaunders.com.au/are-you-fire-ready/

"If you have a hearing impairment, there’s an essential question you need to ask yourself:

Can I hear the smoke alarm if I’m not wearing my hearing aids?

Thankfully, there are specialised smoke alarms available which can, in addition to their normal function, send a wireless signal to a bedside alert system designed to wake a hearing impaired sleeper via a bright flashing light and bed shaker. Unfortunately, these specially designed alarms can cost up to $500 each.

To offset the high cost of this specialised equipment for those who cannot hear a standard smoke alarm, most state governments have a subsidy scheme. Get in touch with your relevant society.

New South Wales – The Deaf Society of NSW
www.deafsocietynsw.org.au/smokealarms

Victoria – Vicdeaf
http://www.vicdeaf.com.au/content.asp?id=31&t=smoke-alarm-subsidy&cid=81

Queensland – Deaf Services Queensland
http://www.deafservicesqld.org.au/sass

South Australia – Guide Dogs SA.NT
https://www.guidedogs.org.au/smoke-alarm-scheme

Tasmania – Tasdeaf/Hearing Link
www.tasdeaf.org.au

Western Australia - Independent Living Centre for WA Inc
http://ilc.com.au/funding/disability-equipment-grants/

It is a legal responsibility of all owners and landlords to install working smoke alarms."

Full story here:- https://elainesaunders.com.au/are-you-fire-ready/

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Amend the Retirement Village Definition

Amend the Retirement Village Definition - Long time advocate for reform to the Victorian Retirement Villages Act 1986 Mr. Charles Adams continued his push for amendments to the Act in a letter to the relevant minisiter Marlene Kairouz.

"Dear Hon Marlene Kairouz, Minister for CAV,
My disabled wife and I moved into a retirement village 14 years ago, and a month later the operator needed the monthly service/maintenance charge to rise by 50%. That got my attention, and I helped found the RRVV and was on the committee for a number of years.

Since then I have studied the state legislation and the resultant skewed contracts across Australasia, that allow developer operators to charge the costs of their incompetence to retirees, who have had no option but to pay an interest free capital loan, a ransom, to be granted a skewed contract to down size into a unit in a Retirement Village.

Those biased contracts are the result of the legislated definition of a retirement village mandating an interest free capital loan, the ransom.
I also took a trip to the USA to study their contracts. They have 15% of the over 65 year olds in retirement villages. They have simple clear residential tenancy contracts, which show the cost rate.

Australasian contracts mandating interest free capital for the developer/operators make the contracts so complex that as the LSIC inquiry found very few people think they understand theirs. Furthermore it is impractical to calculate a monthly rate because there are too many variables to consider. The contract cost complexity prevents free market competition. Those contracts are a serious disincentive to prospective retiree lessees such that the comparable percentage of Australasian over 65s in retirement villages is 5.7%, according to the Property Council Australia.

Retirement villages are great, except for the contracts. Victoria and Australia need more, if they had fair contracts.
As a result of 14 years investigation the attachment sets out the only essential changes to fix this unacceptable consumer legislation for your parents generation, future lessees.

The developer/operator PCA industry will put up some smoke and mirror explanation of why these simple changes are unacceptable. They have been able to convince CAV, or one person in it, that the interest free loan for capital, is the only possible way of funding retirement villages. So far they have been successful in stymieing every one of the 6 attempts to get fair contracts in a free market for over 30 years.

Whether Consumer Affairs Victoria don't understand the implications of the legislated Retirement Village definition, or worse, is impossible for consumers to say. The misinformation on this issue is a serious barrier for all of the people in independent quangos or other organizations trying to expedite a complete review of an Act to solve a simple problem, a skewed definition.

There is nothing to be gained by referring this letter to CAV to answer, they are the main barrier to retirement village progress.

Kind regards,Charles Adams."

Initial story here:- http://www.retvill.net/legislation/amend-retirement-village-legislation

Amend the Retirement Village Definition.

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Continued Push for RV Legislation Change

Continued Push for RV Legislation Change -   Long time advocate for reforms to Retirement Villages Charles Adams continues his push for amendments to the Victorian Retirement Villages Act 1986.

In a continued push for retirement village legislation reform Charles forwarded to the relevant minister Marlene Kairouz and selected Victorian politicians the following submission,

"The  service/ maintenance fee went up 50%, a month after the writer and disabled wife moved into a unit in a retirement village. This is his suggestion to make the Victorian Retirement Village Act fit for its stated purpose of protecting retirees who consider choosing to downsize by leasing a unit in a loan-lease retirement village.

Nothing much will change for the hundreds of dissatisfied lessees who submitted to the LSIC inquiry, those who presented to the hearings, or for all future lessees.

1. Revise the Retirement Village Act to mandate all future prospective lessees are offered a secure tenure residential tenancy contract**. This is the only known cost transparent lease, and therefore the only model compatible with a free market.This is not to preclude the offer of optional ”interest free capital loan leases”, (theinterest free loan is euphemistically called and ingoing contribution) as it may be more attractive to younger retirees who enter a village unit early and could have a long life expectancy, and a longer duration tenure . It is impractical to compare “Loan Lease” contracts as they obscure the declining cost rate so a free-market cannot exist. For some it offers taxation and or pension advantages.
   


2. Appoint a retiree-housing ombudsman to provide affordable enforceable dispute resolution.
   


3. Require all retirement village managers qualify, within 6 months of appointment, to an independent institution course, covering the RV Act, regulations, ethics, contracts and meeting maintenance needs.

** The village developer/operators will declare this unacceptable, saying they don’t have the capital to build villages without the availability of the zero cost capital, (provided by the “in-going contribution”) even tho they only have 5.7% of the over 65 years demographic. Secure tenure residential tenancy contracts are the norm, in the USA, where over 15% of the over 65s lease in retirement villages.

The zero cost capital is a subterfuge to disadvantage lessees for the benefit of the developer/operators management bonuses and shareholders.

While this is for the Victorian RV Act, the contract model that it generates is so lucrative that it is now the de facto Australasian standard."

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Retirement Housing Matters

Retirement Housing Matters - Advocacy groups Council On The Ageing, Consumer Action Law Centre, Housing for the Aged Action Group and Residents of Retirement Villages Victoria  are building on their demand for Retirement Village reforms in 2018 an election year in Victoria.

"Key points in the retirement housing matters campaign are:-

1. Establish a Retirement Housing Ombudsman - Retirement housing residents need access to an industry- funded ombudsman service, to provide free, fair and binding determination of retirement housing disputes, across the full spectrum of retirement housing types. Currently, residents must go to the Victorian Civil and Administrative Tribunal (VCAT) to resolve their disputes with operators, which is an expensive, lengthy and intimidating process. Running a substantial matter through VCAT is simply beyond the financial capacity of most retirees, and the process itself can be overwhelming. A case run by Consumer Action was independently assessed as costing over $250,000. As a result, many choose not to pursue legitimate grievances through VCAT, leaving those grievances unchallenged and largely unreported.


2. Put a Stop to Excessive Fees - Retirement housing exit fees are currently unregulated and open to exploitation by operators. These fees appear to have no relationship to the value of the services provided. Exit fees must be reformed and regulated to prevent excessive price gouging, to provide greater clarity around pricing, and to ensure that residents can compare options. There are different types of exit fees, including, deferred management fees (DMFs), refurbishment and reinstatement fees, legal costs, share of capital gain and long-term maintenance fees. One of the most problematic exit fees is the DMF. These exit fees are generally 20 to 40% of the sale price of a unit. DMFs are applied in both residential park and retirement village contracts. These fees may not be clear to residents when they move in, making informed choice and comparison
   difficult, if not impossible.


3. Introduce Mandatory Minimum Training and Accreditation Standards - Shockingly, there are no minimum training or accreditation requirements for retirement housing operators. Residential parks are not even registered with Consumer Affairs Victoria (CAV). The lack of minimum standards in retirement housing has a significant impact on the day-to-day lives of residents and their families, and it is simply unacceptable. Meanwhile, training and accreditation programs developed by industry have failed to meet appropriate standards, and lack credibility. Retirement housing employees should be required to meet minimum training and ongoing professional development standards. This training should be a minimum Certificate IV qualification under the Australian Qualifications Framework. This would not only improve the reputation and professionalism of the industry, but would recognise the unique skills and responsibilities required of managers. We also recommend ongoing professional development and banning managers who have significantly
   breached their duties. Police checks should also be mandatory for all staff.


4. Reduce the Complexity of Contracts - It is not uncommon for retirement housing contracts to exceed 100 pages in length. Lawyers at the Consumer Action Law Centre recently described these contracts as ‘some of the worst [they had] ever seen’. Older Victorians are often going through a traumatic and upsetting time of their lives as they
   leave their family home to enter a village or other retirement living community. They should not be expected to navigate complex and lengthy legal documents to make significant life decisions.
   Basic guidelines should be developed to ensure that contracts are expressed in plain English and meet a certain standard of readability. While the Retirement Villages (Contractual Arrangements) Regulations 2017 (VicIC) establish prescribed terms and layouts for management and residence contracts, they have failed to address the length and complexity of contracts. Consumer testing of any standard layouts or terms is essential."

The Retirement Housing Matters campaign was first launched on Thursday November 30 - We’ve had the inquiry, now we need retirement housing reform!


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Older Victorians Can't Wait

Older Victorians Can't Wait.

Victorian Retirement Village advocacy groups, COTA, Consumer Action, HAAG, RRVV  are beginning to mount their campaign for Retirement Village reforms in this Victorian election year.

Victoria Votes 2018- Retirement Housing Matters - Make it fair and affordable.

The Older Victorians Can't Wait objective is retirement village living that is Safe, Affordable, Fair.

The released brochure states:-

"Behind the glossy brochures and satisfaction surveys, unscrupulous retirement housing operators hide a dirty secret: they are making a fortune from residents' nest eggs."

"Retirement villages, residential parks and independent living units provide a critical housing option for
over-55s across Victoria. They allow older Victorians to down-size, freeing up housing for younger
families. They also provide social connectivity to thousands of people as they exit the workforce.
However, the promise of a happy retirement can be destroyed by serious gaps in our consumer
protection and access to justice framework.

Legislators have an obligation to prevent financial exploitation, raise retirement housing industry
standards, and provide access to justice for Victoria’s retirees. Without structural reform now, the
systemic problems we already have will worsen - leaving many senior Victorians and their families
caught out by unfair contracts, and unable to resolve their disputes. A robust consumer protection and
dispute resolution framework would improve trust and confidence in the sector, and foster growth and
positive innovation. These principles are complementary, rather than contradictory.

Our organisations deliver services to members and the Victorian community, advocate for change, and
provide policy advice to legislators and policy makers. We are speaking out because of the significant
financial and personal costs borne by residents and their families every day.

We have identified the big challenges for Victorian retirement housing residents as the starting point
for urgently needed reform: access to justice through fast, free and fair dispute resolution; training and
accreditation; and fixing excessive fees and complex contracts. These practical solutions will improve
daily life for thousands of Victorians living in retirement housing. We need your commitment to
implement these essential reforms."

See original campaign release here:- Retirement Housing Reforms Demanded

Older Victorians Can't Wait.



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Retiree Warning

Retiree Warning - Seniors locked in battle with Geelong lifestyle village.

Channel 9 Network A Current Affair reports:-

Full story available here:-   Seniors locked in battle with Geelong lifestyle village

"There are new calls for an overhaul of Australia's retirement and lifestyle villages, after a contract technicality caught out seniors at a gated community in Geelong.

Charlie Sciberras has had a holiday unit at Pelican Shores for more than 40 years, but the 62-year-old recently decided to sell the property to help fund his retirement.

The company claimed a clause in the contract meant they had control over the unit, and Mr Sciberras couldn't sell it on his terms, even though it had been in the family for decades.

Town planner Bill Kusznirczuk says property contracts are far too difficult and confusing, particularly for retirement and lifestyle villages.

He wants the Government to review the entire industry.

"I think it'd be prudent for the Federal government to initiate a review of retirement villages and lifestyle villages and how they can better improve the offer that's being given at the moment," he said."

Read the full story here:-   Seniors locked in battle with Geelong lifestyle village

Retiree Warning

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Alzheimer's Home Living Structures

Preparations Make the Difference at Home

By

Lydia Chan
Alzheimerscaregiver.net

Alzheimer's Home Living Structures - Family members face big challenges when a loved one is diagnosed with Alzheimer’s disease. Providing a healthy, safe environment is a key to moving forward. With proper assessment and preparations, you can equip yourself and living areas for the care of your senior.

image courtesy of Pixabay

Communication

An Alzheimer’s diagnosis means necessary changes in living structures and you will be engaging in some difficult conversations. Your loved one may want the living situation to stay the same, and change can be very emotional.

These conversations can be difficult but are necessary for making effective choices which respect the desires of your loved one. Approach the subject with honesty and compassion. Experts offer these suggestions:

• Sharing and support. Be open about your feelings and assure your senior you will be supportive and that you will assist in solving problems as they arise.


• Respect independence. Ensure your senior is able to preserve as much control over lifestyle-related decisions as possible.


• Baby steps. Allow your senior to become acclimated to changes by making the smallest steps possible.


• Become educated. Learn about medical, legal, and financial issues relating to your senior in terms of background and current affairs. Be aware of what to expect with the aging process and progression of the disease.

Providing care

Chances are your care for your loved one will include not only taking your senior under your wing but also under your roof. More than 342,000 Australians are living with Alzheimer's and dementia - a number expected to increase to 400,000 in less than a decade. Studies show care providers often make the choice to bring their loved one home:

"It can be your grandparent, your cousin, your sibling or even your parent who faces the diagnosis. Eventually, those with Alzheimer’s require round-the-clock care, and for many families, that means taking the loved one into their own home."

Assessing home

Depending on the circumstances, some experts suggest establishing living quarters on one level, including bedroom, bathroom and kitchen facilities. Wherever your loved one lives will require appropriate preparations. You should inspect living areas for potential hazards; some general things to look for include:

• Improve lighting in dim rooms and walkways.


• Secure furniture to prevent trips and falls.


• Use chairs with armrests to support transitioning from seated to standing positions.


• Clear walkways and eliminate slipping and tripping hazards, such as rugs, cords, ottomans, and magazine racks.


• Add stickers to windows and glass doorways at eye level to improve visibility.


• Eliminate locks on doors to interior rooms so your loved one can’t be accidently locked in.


• Secure medications, cleansers and poisons that could be accidentally ingested or otherwise inappropriately handled.


• Remove sharp objects and tools that could cause injury.

As you evaluate the dwelling, you should assess every room for risks to safety. The Alzheimer’s Association offers a terrific home safety checklist to assist in your evaluation.

Engage support

Once you make your assessment and establish a foundation with your loved one, opening lines of communication with other family members is often necessary. There may be financial considerations, especially if major home modifications are required or hiring assistance becomes necessary. Everyone’s viewpoint should be considered, and sometimes family dynamics can cause conflict. Again, this may not be an easy conversation, and as noted by PBS involving a third party such as a social worker, geriatric caregiver, or spiritual leader could be helpful.

Even though the process is emotional and challenging, it’s far better to engage everyone in these discussions ahead of time, rather than during a crisis. Also, by opening communication now you can all share in the burdens that come with caregiving. No one family member should be saddled entirely with daily care, transportation, health and medical commitments, and financial undertakings.

Bringing home your senior

Receiving the news a loved one has Alzheimer’s disease can be overwhelming, but with proper steps you will be able to move forward. Communicate with your senior as well as family members for a healthy support system. Assess the home for safety and make appropriate changes. By equipping yourself, your family, your loved one and your home, you can provide the best possible care.

 

Alzheimer's Home Living Structures - Article by - Lydia Chan
Alzheimerscaregiver.net

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Happy New Year 2018

Happy New Year 2018


Happy New Year 2018 from RETVILLDOTNET

People have pushed tirelessly for a balanced financial and legal relationship between resident and retirement village owner/operator.

2017 was the year that finally proved the imbalance,  can 2018 provide the balance with reforms to contracts, legislation, oversight and enforcement. - I won't hold my breath but I am hopeful.




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