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NSW Retirement Village changes to start on 1 July

The wake of the Inquiry into the NSW Retirement Village Sector by Kathryn Greiner will be defined by real and appreciable change to the way villages go about their ‘day to day’ business in an operational, sales and compliance sense. Whether this change achieves the intended consequences is yet to be seen.

In the not too distant future, NSW can expect a Code of Conduct for operators and the very real possibility of mandatory buyback periods for registered interest holders – which may vary between metro and regional areas. These topics will unfold shortly. However, the most immediate impact is almost upon us, with the bulk of the November 2018 legislative change coming into effect on 1 July 2019.

The following is a brief overview and checklist regarding these legislative requirements:

Key Safety Information Display
Legislation requirement Operator checklist
  • Display key safety information in communal areas.
  • This information includes a map with assembly areas, exits and fire extinguishers and other emergency equipment; instructions regarding the evacuation of residents.
  • Provide the same key safety information to residents in their homes.
  • Prepare the key safety information
  • Arrange initial display & distribution
  • Develop review and update protocol

 
Emergency Plan
Legislation requirement Operator checklist
  • Draft an emergency plan that satisfies the procedures for responding to an emergency; evacuating; notifying emergency service organisations as soon as possible; medical treatment and assistance and communication.
  • The plan has to be available for inspection by prospective residents
  • Operators must maintain the plan, and ensure residents and staff are familiar with it.
  • Draft emergency plan.
  • Note: ‘Off the shelf’ documents will not be sufficient because the plan has to be specific to the village and the residents.
  • Implement an appropriate review/update program.
  • Schedule initial and ongoing training
  • Develop protocols for advising residents and staff of updates
Annual Emergency Evacuation Exercise
Legislation requirement Operator checklist
  • Carry out an evacuation exercise for residents at least once a year
  • Schedule annual evacuation exercise (ensuring appropriate consultation)
  • Review outcomes of exercise and make any needed changes.
Residents right to an annual meeting re their contract and rights (‘contract check-up’)
Legislation requirement Operator checklist
  • Residents have the right to have an annual meeting with the operator about their rights in light of their contract, and the sale process. They can have support people and other representatives attend.
  • The information to be provided at the meeting is different for registered and non-registered interest holders.
  • Any figures provided must be calculated from particular dates.
  • Provide a written summary of the meeting.
  • Ensure staff are aware of the requirement.
  • Develop appropriate polies and template documents are in place to respond to a request for the meeting, the content covered during the meeting, the information provided post meeting and record keeping.

Note: The risk of these meetings is the allegation of an undocumented representation.
Asset Management Plan
Legislation requirement Operator checklist
  • Prepare a plan for capital items, and ensure it is up to date.
  • Prepare the plan.
  • Diarise a review programme.
Account Auditing and Quarterly Accounts
Legislation requirement Operator checklist
  • Accounts must be audited annually.
  • The auditor must have been consented to by the residents.
  • The residents’ consent must be requested in writing, voted on and can be given for periods of up to 3 years.
  • The operator must provide the quarterly accounts to the residents committee and, if requested, any resident. There are timeframes.
  • Ensure consent requirement is added to the budget timeline.
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