1. #EldersForum2018 #AgeingInCommon #NCF2018

2. #EldersForum2018 #AgeingInCommon #NCF2018
SKY 6 - Building Communities
Chair: Michael Voges, Executive Director, ARCO
John Collyns, Executive Director, Retirement Villages Association, NZ
The Retirement Villages Association Inc
Mansoor Dalal, Founder and Chairman, Association of Senior Living, India
Old Peoples Home for 4 Year Olds
Femada Shamam, Chief Executive Officer, The Association For The Ageing, South Africa
The Association for the Aged
#EldersForum #AgeingInCommon #NCF2018

3. New Zealand’s retirement village regulatory regime
John Collyns, Executive Director, Retirement Villages Association of New Zealand
17 APRIL 2018

4. The NZ retirement village industry
401 registered retirement villages as at 31 December 2017
31,000 units – villas, apartments, serviced apartments
62% corporate, 25% independent, 13% not-for-profit
Average village size = 74 units
40,300 residents at 1.3 people/unit
73% of villages have a care facility on site; many “lifestyle” villages are looking at building care
Approximately 23,300 care beds within RV campuses; about 53% of all care beds.
95% of villages = LTO; 5% = unit title
$13.5 billion capital value
Mostly Jones Lang LaSalle

5. New Zealand’s retirement village model
Retirement village operators do not retain the ‘capital gain’.
Instead, they must pay back a considerable amount to residents or their estates following every sale
In fact, the purchase price is almost fully repaid
The only portion retained is the Deferred Management Fee (DMF)
The following example clearly illustrates this:
Unit sells for
$800,000
Unit sells for
$600,000
Unit sells for
$400,000
On termination, $600,000
returned to
residents
Unit built for
$350,000
-25% = $300,000
Returned to resident
On termination, $450,000
returned to resident
DMF
$200,000
Retained by operator
DMF
$100,000
Retained by operator
DMF
$150,000
Retained by operator
$1.35 million is re-paid to residents or their estates over the lifetime of the unit.

6. Key aspects of the regime
Protection of residents’ financial investment
Full disclosure so decision made is informed
Creating and maintaining a fair and reasonable balance between operators’ responsibilities and residents’ interests
Code of Residents’ Rights
Code of Practice

7. Resident protection Villages must be registered with Registrar
Memorial placed on land title – means village can only be operated as a retirement village and sold as such; residents’ tenure is protected ahead of all creditors.
Copies of key documents held and available on-line
Statutory Supervisor appointed
Regulated by Financial Markets Authority – “fit and proper”
Role governed by a Deed of Supervision signed with the operator
Legislative responsibilities include overseeing and reporting on village’s financial probity, liaising with residents, holding deposits, and stepping in to direct how the village is run if need be.
Practical examples – Crossdale, Ropata villages

8. Full disclosure Documents the operator must provide:
Occupation Right Agreement, Disclosure statement, Code of Practice, Code of Residents’ Rights. On request – village financial statements
Disclosure statements include ownership, village status, services and facilities provided and/or planned, fees and charges, time taken to re-sell units, etc
All intending residents must have legal advice; lawyer must attest that the advice has been given before ORA signed by operator
15-day cooling off period after signing ORA – money back, no questions.
Money held in trust by Statutory Supervisor until after 15-day period

10. #EldersForum2018 #AgeingInCommon #NCF2018