Consumer NZ - Web Capture - Top 10 Fixes for Retirement Villages

After a resident leaves (whether moving out or passing away), operators can take 6–12 months or longer to repay the capital contribution. During this period, the operator holds the resident's (or their estate's) money interest-free, effectively using it as working capital. - Introduce a statutory maximum repayment timeframe of 20 working days after: - The unit is vacated - Handed back in reasonable condition (fair wear and tear accepted) - If the operator fails to repay within the timeframe, they must pay interest at a prescribed rate (e.g., the current market interest rate or a statutory rate) - Many residents rely on their capital for rest home care, medical costs, or family needs - Delays cause financial stress and hardship for families - The current system is an unfair interest-free loan from residents to operators Government proposals indicate that new rules will only apply to new ORAs signed after the changes take effect. This leaves current residents — more than 40,000 people — stuck with the existing unfair terms. - All legislative and regulatory changes must apply to existing ORAs as well as new ones - If a change benefits residents (e.g., shorter repayment timeframes, DMF caps), it must automatically apply to all current contracts - Operators must notify existing residents of their new rights under any amended law - Creates a two-tier system — unfair to existing residents - Current residents are **just as vulnerabl