Retirement Villages Act, regulations and codes

Every registered retirement village in New Zealand must comply with the Retirement Villages Act 2003 and associated regulations and codes.

About the Act

The Retirement Villages Act 2003 (the Act) sets out obligations for retirement village operators and the rights of residents and anyone considering moving into a retirement village. 

See the Retirement Villages Act 2003(external link) 

Public consultation for the review of the Retirement Villages Act 2003

Submissions for public consultation for the review of the Retirement Villages Act 2003 closed at 5pm, Monday 20 November 2023. If you need to contact us about the consultation, please email RVAreview@hud.govt.nz

Update – October 2024

The Government is progressing the review of the Retirement Villages Act, on the basis of making changes that are broadly supported by the retirement sector and residents as well as three areas which are a priority that have been raised by residents:

  • maintenance and repairs of operator-owned chattels and fixtures
  • complaints and disputes
  • options for incentivising or requiring earlier capital repayments when residents move out of a village.

More information can be found in the briefing, Retirement Villages Act 2003 review - outcomes of public consultation and next steps for the review.

A summary of the 11,000 submissions on the Retirement Villages Act review discussion document is expected to be available on this webpage in the coming weeks. 

  • Consultation Key proposals

    The consultation invited feedback on a number of proposed changes, including:

    • replacing the disclosure statement with new plain language documents,
    • introducing a partially standardised occupation right agreement,
    • requiring operators to meet the direct costs of maintaining and repairing operator-owned chattels and fixtures,
    • replacing the current dispute resolution scheme with a new scheme that aligns with the best practice principles for dispute resolution,
    • requiring disclosure documents to include more comprehensive information on transferring within a village to aged residential care,
    • stopping fees after a unit is vacated, and
    • introducing a mandatory timeframe for repaying a resident’s capital when they move out, and/or requiring an operator to pay interest if the repayment is not made after a certain time.

  • Consultation Discussion Paper: The Retirement Villages Act 2003: options for change

    The discussion paper is the next stage in a review of the Act which was announced in December 2022.

    Read The Retirement Villages Act 2003: options for change discussion paper. (PDF, 2.3 MB)

    Read The Retirement Villages Act 2003: options for change summary paper. (PDF, 981 KB)

  • Consultation Cost Benefit Analysis

    An independent cost benefit analysis was completed to understand the potential impacts of proposals related to the dispute resolution scheme and financial exit matters.

    Read the cost benefit analysis report. (PDF, 11 MB)

    Read the cost benefit analysis report (large text version). (PDF, 1.8 MB)

 

 

RS8640

Protecting residents' rights

The Act provides rights for residents:  

  • before they move into a retirement village 
  • while they live in a retirement village, and 
  • after they leave. 

These rights ensure they: 

  • understand their financial obligations and other obligations as residents of the retirement village, and  
  • get what they’ve been promised or are entitled to.  

Residents typically agree to pay a capital sum for the right to live in a unit in a registered retirement village. The agreement can take several forms, such as a license to occupy, freehold, leasehold, cross-lease or unit title. 

A capital sum can also mean periodic payments if those payments are substantially more than rent for similar services or facilities. 

Anyone considering moving into a retirement village should seek independent legal advice and are strongly encouraged to seek financial advice to make sure they fully understand what they’re entering into.  

 

Operators’ obligations 

Registering a retirement village 

A retirement village must be registered on the Retirement Villages Register. To register, an operator must complete an application for registration, provide any requested supporting documents and pay a registration fee. To stay registered, village operates must file an annual return.  

Registering a retirement village | Companies Office(external link) 

Code of Practice 2008 

The Code of Practice 2008 sets out the minimum requirements for retirement village operators to meet their legal obligations, including: 

  • staffing of retirement villages 
  • safety and personal security of residents 
  • transfer of residents within a retirement village, e.g. from independent units to serviced care or care facilities 
  • the complaints process  
  • maintenance and upgrades 
  • termination of an occupation right agreement by the operator or resident 
  • communication with residents.  

Provisions in the Code of Practice override any less-favourable terms in an occupation right agreement. Village operators must give a copy of the Code of Practice to any resident or prospective resident who asks for one.  

Code of Practice 2008 

Statutory supervisor 

Retirement village operators must appoint a statutory supervisor, unless the Registrar of Retirement Villages grants them an exemption. 

The statutory supervisor helps protect the interests of retirement village residents. 

Companies Office — Appointing a statutory supervisor(external link) 

 Retirement Commissioner 

Te Ara Ahunga Ora Retirement Commission, led by current Mana Ahungarua Retirement Commissioner Jane Wrightson, monitors: 

  • the effects of the legislation and Code of Practice, and 
  • the establishment and oversight of the disputes panel system. 

Te Ara Ahunga Ora Retirement Commission is also responsible for promoting education, information and publications about retirement villages. 

Te Ara Ahunga Ora Retirement Commission(external link) 

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