Legislation update: Retirement Villages and Manufactured Homes. Presented by Danielle Lim September 2014
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2 Legislation update: Retirement Villages and Manufactured Homes Presented by Danielle Lim September 2014
3 Outline Retirement village unit v manufactured home Status of reviews Retirement Villages Act 1999 (Qld): Possible areas for change Manufactured Homes (Residential Parks) Act 2003 (Qld): Hot issues Potential changes Consistent themes
4 Retirement village unit v manufactured home Retirement Village Ownership: lease, licence, freehold, company title etc Payment model: exit fee Regulation: Significant regulation Village/communal environment Common facilities Manufactured Home Park Ownership: Home is owned as a chattel Payment model: no exit fee. Site rent Regulation: Comparatively minimal Village/communal environment Common facilities
5 RV Unit, Manufactured Home or Other?
6 The status of review: Retirement Villages Act 1999 (Qld) Review commenced Review of Retirement Villages Act: 37 Recommendations Ministerial Working Party Outcomes report presented to Minister Consultation Regulatory Impact Statement Next steps: stakeholder feedback, analysis and draft legislation
7 Manufactured Homes (Residential Parks) Act 2003 (Qld) Manufactured Homes Survey Ministerial Working Party Report on Findings - Survey Anticipated timeframe to issue Regulatory Impact Statement Next steps: finalise Working Party input; issue RIS; obtain stakeholder feedback, analysis and draft legislation
8 Retirement Villages Act 1999 (Qld): Possible areas for change Village closure Best practice standards Alternative payment models Early payment of exit entitlements Additional issues
9 Possible areas for change - Village closure Limited regulation Deregistration criteria Cancellation process Upon closure Communication Relocation procedures Operator conduct Payments to residents: methods & timing
10 Possible areas for change - Best practice standards Operator and resident interaction: Operators abusing power Residents defaming the operator and bullying each other
11 Possible areas for change - Best practice standards
12 Possible areas for change - Best practice standards Various options: fairness principles; code of conduct; corporate governance standards Potential amendments to the Act: New rights for residents Obligations regarding disputes Disclosure
13 Possible areas for change - Alternative Payment Models Current payment model: Ingoing contribution General Services Charges MRF and CRF established and maintained Reinstatement may be contributed to by resident On exit, exit entitlement received and exit fee paid
14 Possible areas for change - Alternative Payment Models Alternative models: No ingoing contribution higher exit fee No exit fee higher ingoing contribution No ingoing contribution/exit fee recurrent rental payment No general services charges recurrent rental Alternative models must maintain protections and safeguards Act amendment may not be required
15 Possible areas for change - Early payment of exit entitlements Issues with residents being unable to sell their units Act does not address delays Options include: Prescribed early payment Disclosure Significant impacts to consider
16 Possible areas for change - Additional issues Simplified PID No standard form contract Simplification to cooling off periods Operators to pay GSC on developing units Reduced frequency of QS reports (currently 3 years) Limits on reinstatement
17 Manufactured Homes (Residential Parks) Act 2003 (Qld): Hot issues Increases in site rents (CPI/Market) Dispute resolution Resident and management relations Charges for on-supply of electricity Park rules
18 Consistent themes Reduced red tape Disclosure Consolidated legislation? Best practice
19 References Manufactured Homes Survey 2013: Report on findings /Pages/default.aspx Review of the Retirement Villages Act 1999: Consultation Regulatory Impact Statement ages/reviewoftheretirementvillagesact1999.aspx
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