Retirement village 'cowboys' on notice

Win Ritsman reckons moving into a retirement village with his wife was the best move they ever made. But the 82-year-old has friends who are deeply unhappy, and feeling cheated, after making the same move.

That is why Mr Ritsman is so pleased the Government announced new regulations yesterday to provide greater protection for all 25,000 or so residents of retirement villages around the country.

"There are a lot of people [operating] villages just to fill their own pockets," Mr Ritsman said.

But he has nothing but praise for the immaculate Ngaio Marsh Retirement Village in Christchurch, where he and his wife, Janine, have their two-bedroom home and he can visit the gymnasium and play bowls and his weekly game of snooker.

New regulations under the Retirement Villages Act 2003 will force "cowboy" operators into line by requiring all villages to be registered for the first time. A watchdog will scrutinise their operations and they will be subject to a new code of practice.

A new disputes panel will allow complaints from residents to be heard independently.

Building Issues Minister Clayton Cosgrove said: "Often residents' only option has been court action, which can be out of reach for those on fixed incomes.

"Because this sector has been largely unregulated, I cannot tell you how many retirement villages there are in the country, as we simply don't know. The reason we don't know the exact number is because they don't have to be counted, let alone be accountable. Up until now, that is."

The executive director of the Retirement Villages Association, Petrina Turner, said her group had helped to formulate the new regulations, but had some concerns about the costs that would be imposed on operators.

Operators of villages of 85 units or more face an annual registration fee of $4410 and an annual charge of $3850 to file a return. Operators will also pick up the costs of the disputes panel.

"They [the costs] are higher than what we would have liked, but we have to work with what we have got."

Ms Turner acknowledged there were "cowboys" in the industry, but said most operators were responsible.

"By and large, people go into the sector because they have a passion for older people."

Age Concern chief executive Ann Martin said it was a pity it had taken so long to get the regulations.

"Retirement villages ... are governed by complex contracts and involve large investments so care is needed. A large part of the industry has successfully regulated itself, but inconsistencies between operators added to the confusion. Some older people have been hurt financially."


Grey Power

* From next month retirement villages must have a way of dealing with complaints.
* Disputes that cannot be resolved internally can go to a disputes panel.
* From May 1 next year, potential residents 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.