Did officials model the impact separately for listed retirement village operators, charitable retirement village operators, and small retirement village operators, for the Retirement Villages Act review: estimated costs of capital repayment timeframes?

Answer

In its advice, the Ministry considered whether not-for-profit operators should also be exempt from a maximum repayment timeframe. However, the Ministry advised there was insufficient evidence on the need for such an exemption. The Government agreed to exempt villages with fewer than 50 units and villages which share capital gains with former residents from the maximum repayment timeframe. Villages that will be subject to the maximum repayment timeframe will be able to apply for an extension, if required. To address costs for operators, viability risks, and unintended consequences of operators increasing fees for current residents and decreasing services or maintenance, the maximum repayment timeframe will apply prospectively to occupation right agreements entered into 12 months after the changes are signed into law. The Select Committee process will provide retirement village operators the opportunity to advise MPs on the potential affects the Government’s agreed changes to the Retirement Villages Act 2003 may have on their business.