Moving into a retirement village is a big decision. To feel confident in your choice, it helps to understand your rights and what the village operator is legally required to provide. That’s where the Retirement Villages Code of Practice comes in.
This Code is a legal document that outlines the minimum standard of care, communication, safety, and transparency that every licensed retirement village in New Zealand must follow. It’s published by the Ministry of Business, Innovation and Employment and administered by the Ministry of Housing and Urban Development.
Here are five key things residents (and their families) should know
1. It’s a legal document that protects residents’ rights
The Code of Practice is legally binding. Operators must follow it, and it overrides anything in your occupation right agreement that offers you less protection.
- The Code is enforceable as a contract by a resident.
- It must be included in any occupation right agreement.
- Operators must give you a copy of the Code (along with the disclosure statement, ORA, and Code of Residents’ Rights) before you sign anything.
2. You have a right to information and consultation
Residents must be kept informed of anything that affects their living situation and be consulted on changes.
- Notification: Operators must let residents know about anything that might materially impact them such as new developments and changes in fees.
- Consultation: Operators must consult with residents (as a group or individuals) about any proposed changes to services, benefits, or charges that could impact occupancy or affordability. They must provide relevant information, allow time for feedback, and genuinely consider residents’ views before making decisions.
3. There are clear complaint and dispute resolution processes
If something’s not right, the Code sets out a clear process:
- Informal concerns: Operators must have a written procedure for raising informal concerns and must respond in writing within a reasonable time.
- Formal complaints: A written complaints policy must be available, outlining next steps including meetings with the residents’ committee or statutory supervisor, and contact details for support agencies.
- Escalation: If a formal complaint isn’t resolved within 20 working days, it should go to the statutory supervisor. If still unresolved, mediation is the next step (paid for by the operator in disputes with residents).
- Disputes panel: If mediation fails, the complaint can be taken to a disputes panel. You have up to six months after making a formal complaint to do this.
Everything you need to know.
4. Safety and security measures are required
The Code includes standards to help keep residents safe.
- Operators must have written policies covering lighting, heating, staff conduct, and other practices that support personal safety.
- Villages must have systems in place for fire protection and emergency management, in line with the Building Act and Fire Safety Regulations.
- There must be evacuation plans, emergency policies (covering events like earthquakes, floods, or medical situations), and regular drills for both residents and staff.
5. Financial transparency and exit rights are protected
The Code sets clear rules around fees, maintenance, and what happens when a resident leaves.
- Invoicing: Operators must provide easy-to-understand invoices showing what’s being charged, when it was incurred, and how to query it.
- Maintenance funding: If residents contribute to long-term maintenance, those funds must be held in a separate account, and villages must report how upgrades will be paid for.
- Termination: Operators must stop charging for personal services once a resident permanently vacates. Outgoings must be reduced by at least 50% if no new ORA is signed within six months. Deferred fees can’t keep accruing after the final payment date. Operators must also act promptly and reasonably to find a new resident for the vacated unit.
In Summary
The Code of Practice is there to protect you. It outlines what you can expect from the village and what they’re legally required to do. Whether you're comparing villages or already living in one, it’s worth knowing what the Code says.
Further reading
The Costs of Living in a Retirement Village
