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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