Page 3269 - Week 08 - Wednesday, 22 August 2012
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operators have mentioned to my directorate that the provision of unaudited quarterly accounts to residents is an example of a requirement which, although not specifically required by the existing code, is already a normal practice of their village.
Thirdly, from a resident and prospective resident viewpoint, this bill improves consumer protections. These protections include the codification of important resident rights that are currently set out in the code. For prospective residents, there are more comprehensive rules about promotion and advertising of villages. Residents’ basic rights, such as the right to privacy and autonomy, are codified. The bill also provides for residential input into the management of the village, which is similar to the code requirement.
In addition to all this, there are new rules that build on these basic requirements, including clear rules about proposed increases to recurrent charges, often a source of concern for residents of villages. Recurrent charges may only be increased in accordance with a fixed formula in the village contract. If there is no fixed formula, and a village operator proposes that the recurrent charges be increased more than the CPI, the consent of residents is required.
Similar to the code, the bill provides for residents committees, but their roles and functions are clearer in this bill. There are also rules to ensure the independence of residents committees from village management and rules to promote resident participation in residents committees, again a provision which has been formulated as a result of feedback from the residents of villages.
There are three new important consumer protections for residents that are not currently provided for in the code in this bill. These protections would ensure adequate safeguards to resident funds and security of tenure. They are: the creation of a statutory charge over village land; new rules about proposed closures of retirement villages; and access to the Civil and Administrative Tribunal.
The creation of a statutory charge over village land is designed to protect residents’ exit entitlements, where an ingoing contribution has been paid and the resident is entitled to the whole or part of the ingoing contribution. The statutory charge is for the amount of the refund under the village contract. The charge is removed when the village contract is ended and the exit entitlement is paid, or when the land is sold in accordance with part 11 of the bill.
The bill provides clear rules about the closure of villages. Under the code, village management would need to prove to a contract referee that management would, in the special circumstances of the application for termination, suffer undue hardship if the resident’s right to occupy was not terminated.
Under the bill, an operator can only seek to close a retirement village where it is proposed that the retirement village land is to be used for a different purpose. In these circumstances, there are strict rules that need to be complied with by the operator before any resident’s right to occupy his or her unit can be terminated. These include giving residents written notice of the operator’s intention to close the village, and offering new accommodation for residents that is approximately the same standard as
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