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Retirement Village Residents Must Receive Benefit

Grey Power Federation Press Release March 2nd, 2012

Christchurch Retirement Village Residents Must Receive Benefit of Govt Red Zone Buyout of Village Units

Grey Power asks that the current confusion over the entitlement of the Red Zone damage payout for Christchurch retirement village residents be urgently settled.

“It would be a national scandal if the full proceeds of the Government payout did not go directly to the residents to enable them to relocate to a new home as originally announced,” said Roy Reid, President of Grey Power New Zealand.

“The current indication that the money will be paid to the owners of the village, by passing the residents, is unjust and not acceptable.”

“The Red Zone payout is based on the most recent valuation of the land for rating purposes whereas residents face settlement offers from the village owners based on their occupancy agreements, usually the original purchase payment less up to 30% for occupancy fees.”

“This could result in the owners making huge capital gains and leave the residents with completely inadequate funds to provide alternative accommodation. Profiteering of this nature from the suffering of a most vulnerable section of our community just cannot be contemplated.”

The Government is to be commended for recognizing the need to change the original ruling that retirement villages were commercial and not entitled to Red Zone Government buyout, but Minister Gerry Brownlee needs to take the further step to ensure that the residents, not the owners, receive the benefit of the sale of their units under the scheme.

Any other outcome is not acceptable.

Roy Reid, President

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