Hon Maurice Williamson

Minister of Building and Construction

14 October 2013       Media Statement

Improved payout for retirement village residents

Building and Construction Minister Maurice Williamson today announced that owners of retirement village units are now entitled to a better minimum payout following situations such as an earthquake.

Previously, a retirement village operator could deduct maintenance charges for future work on uninhabitable or destroyed homes from the owner’s original capital payment on the property.  Under changes to the Retirement Villages Code of Practice 2008, which take effect today, this is no longer possible.

“We needed to ensure that retirees were not paying maintenance charges for future work on buildings that no longer exist or are not inhabitable due to events beyond their control, such as a natural disaster.  This occurred in Canterbury when the earthquakes destroyed some retirement villages.  We wanted to make sure this couldn’t happen again and owners were protected in such situations.

“The variations I have made to the Code of Practice will clarify the obligations of insurers, protect residents and make the processes for operators clear in no-fault exit situations.

“The Code of Practice is a vital tool for ensuring that retirement villages work in a fair, equitable way, and its flexibility would be retained despite the variations,” Maurice Williamson says.

The revised code can be downloaded from: www.dbh.govt.nz/retirement-villages

ENDS

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