WHAT COSTS ARE INVOLVED?
There are three costs involved in a retirement village. These are:
ENTRY PAYMENT /ORA
The Entry Payment is the capital sum paid for your home. It is paid when you move the Village and it is refunded to you or your estate, less the Village Contribution when you leave the Village, regardless of whether the value of the home has increased or decreased.
Providing a range of accommodation, resident facilities and village infrastructure comes at a significant capital cost and requires ongoing reinvestment for refurbishment and upgrade of accommodation, facilities and infrastructure, and replacement of capital items for the enjoyment of residents today and in the future.
The Village Contribution, also referred to in the industry as the deferred management fee shares these costs equitably among residents. This is not an additional upfront fee as it is only payable when you leave the Village and is deducted from the original entry payment amount when refunded to you or your estate.
The Village Contribution accumulates at the rate of 6.0% in the first year and 12.0% in years two and three on the Entry Payment amount, calculated on a daily basis. Once you have lived in the Village for more than three years, there is no further accumulation, i.e. the maximum amount deducted from the Entry Payment is 30%. Once the Village Contribution is fully accumulated, it will not be charged again.
There are two types of weekly fees; Village Tariff and Service Fees.
Residents are required to pay a weekly Village Tariff which is a contribution toward the general costs of operating the Village. The Village Tariff is the resident’s contribution towards the operating expenses of the Village such as rates, building insurance, exterior maintenance, management, operation of the community facilities.
The Village Tariff, which is set at the time you enter the Village, will not increase during your occupation, protecting you from any increases in the Village’s operating costs.
The service fees pay for the level of services you may require e.g. meals and unit cleaning.
We are committed to ensuring that residents enjoy their residency at the Village. Residents have the right to raise a concern at any time, verbally and in writing, and to receive a response within a reasonable time frame. In the first instance, your concerns should be raised with the Village Manager who will work with you to resolve the problem.
The Retirement Villages Act provides a two-tiered dispute resolution system: a complaints facility operated by the village and an independent dispute panel resolution procedure. Retirement village operators must have a written complaint policy that complies with the Code of Practice. The policy must be available in common areas for residents or intending residents to access or view at any time, and be available on the retirement village's intranet or website. An operator must offer to give a copy of the complaint policy to a resident who advises it wishes to make a formal complaint, and to an intending resident or resident at any other time upon request.
You can view the Policy here.
UNDER WHAT ARRANGEMENT ARE HOMES AVAILABLE?
All homes are available under an Occupation Right Agreement (“ORA”) sometimes called a Licence to Occupy. The ORA gives you the right to occupy your home at the Village. This type of agreement is common to almost all retirement villages throughout New Zealand and is governed by the Retirement Villages Act 2003.
The ORA is an agreement between the resident and the village setting out the terms of your village living. Under the ORA you do not gain a title but you gain the right to occupy your home and to access the various village facilities for your lifetime.
Your Solicitor must explain your rights and obligations created by the ORA and you can only validly sign the ORA when witnessed by your Solicitor.
IS THE VILLAGE REGISTERED UNDER THE RETIREMENT VILLAGES ACT 2003?
Yes the Village is registered as a retirement village with the Registrar of Retirement Villages as required under the Retirement Villages Act 2003.
WHAT IS THE CODE OF PRACTICE?
The Retirement Villages Act 2003 requires a village to observe the Code of Practice which sets out minimum standards for operating a retirement village. A copy of the Code of Practice will be provided to you when you complete an Application for an Occupation Right Agreement.