Retirement Villages: Contract and information disclosure options
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1 Contract and information disclosure options Council on the Ageing Victoria Level 4, Block Arcade 98 Elizabeth St Melbourne 3000 Debra Parnell Ph
2 Background Council on the Ageing (COTA) Victoria is a community-based organisation of older Victorians working in the interests of older people to bring about positive social change. Our mission is to mobilise older people and those who work with them, to age well in a just society. Our organisation has been effectively representing seniors views, and facilitating the active participation of older Victorians, since COTA is Victoria s leading senior advocacy organisation and engages with over 60,000 senior Victorians annually. COTA has expertise in policy development and community education, particularly peer education by older people. COTA has a city base with statewide coverage through its membership and outreach activities. COTA believes all people have the right to dignity, security, and access to high quality services, and equality in participation in the community regardless of their income, status, background, location or any other social or economic factor. COTA recognises that consistent with the general population, older people come from many different cultural backgrounds and have diverse social, economic and health status. The economic, health, social and cultural needs and aspirations of older people are, on the whole, no different from the rest of the community. COTA advocates strongly for the most vulnerable and disadvantaged in the community to ensure they have access to the resources and support they need when they need them. These include access to employment opportunities, housing, information and education, health and support services necessary to live and age well, and to legal services and information. COTA works for a just and equitable society for all, in which older people have the right to be full and participating citizens to the extent of their abilities and wishes, and is underpinned by a strong commitment to human rights and social justice. This commitment is reflected its services and programs which provide opportunities for older people to participate in their communities, to develop new skills and to contribute to political and social policy at all levels of government, and that support older people in exercising their rights COTA s services and activities include: Providing information and services to older people, their relatives and the wider community Advocating on behalf of older people to state and local governments, service providers and the general community Undertaking research and policy development on issues affecting older people Promoting and publicising the needs and preferences of older people to the general community Encouraging a high level of involvement of older people in the organization and its activities. 1
3 Introduction COTA welcomes the Victorian Government s commitment to actively promote the better understanding of retirement villages resident s rights and obligations both prior to entry to a village and also while a resident. COTA manages the Seniors Information Victoria Telephone Service (SIV) which responded to nearly 20,000 calls in in person, by telephone, letter and . The most frequent requests for information relate to finance, general ageing, wellbeing, accommodation and transport. SIV maintains a database of independent accommodation options and is frequently contacted by older people seeking to access affordable and longterm secure housing. COTA, therefore, is very aware of the issues concerning older people in the retirement villages. COTA has participated in other initiatives designed to improving the quality of life and experience of seniors who are considering, and choosing to live in retirement villages, such as the development of retirement village protocols. This has been a very productive process, and it is hoped will have significant benefits for current and prospective residents. We welcome the current consultation on contracts and disclosure of information, and believe this can result in people being better prepared, informed and aware of the arrangements they are entering into under the very complicated retirement village contract. Before commenting on specific proposals in the Consultation Paper, COTA would like to draw your attention to a number of other issues that should be considered in the context of the proposed regulatory changes, and for future initiatives to better safeguard residents rights. 1. Plain English Information It is essential that any information provided be in clear and plain English to meet the information needs of a diverse range of people, including those with communication difficulties, or for whom English is not their first language. 2. Previous experience of residents and prospective residents. As the consultation paper points out, many people may not realise that buying into a retirement village is not the same as a conventional property purchase. Many people living in retirement villages are experienced in business and property transactions, but still find many aspects of the contract arrangements difficult and unexpected. It is our experience that many people have certain expectations of the village and the lifestyle they believe they are entering. Many people see a retirement village as their final accommodation and that they will be supported and cared for in this setting as they age. There needs to be clarity in information provided about the nature of the arrangements being entered into. This may be addressed in other planned initiatives, such as the review of the Guide to choosing and living in a retirement village, but these issues should also be clearly articulated in any information provided in the lead up to entering a retirement village. 3. Benefits to residents outweighing costs to managers. COTA believes that measures that will ensure that older people are able to enjoy a better quality of life, have their rights protected and in a position to make an informed choice, are benefits that should be strived for. There may be costs to managers, but these should not 2
4 hold greater weight than the disadvantaged and difficult position many retirement village residents find themselves in due to poor or unclear information. 4. Rights of residents under existing contracts. While it is understood that these proposals will apply to future residents, COTA argues that there is need to consider the contract terms and arrangements that existing residents may be under. We hold concerns that some contract terms are a violation of the rights of many older people currently living in retirement villages, especially in light of Acts and legislation that have come into force recently or are under review such as the Guardianship and Administration Act, which aims to strengthen the rights of people who may have their control over decisions under threat. This current initiative should not preclude action to review and address such terms and arrangements that disadvantage and undermine the rights of residents. 5. Not For Profit Retirement Villages COTA holds concerns that there is lack of recognition of NFP retirement villages under the existing legislation, and that this current initiative does not attempt to ensure that the information provided to living, or considering living, in these settings is addressed. COTA s Responses to Proposed Regulations In general terms, COTA is very supportive of the proposed changes, seeing them as a positive step to ensure that people are better informed in their choices and accommodation arrangements. We make the following specific comments on the questions posed in the consultation paper: 1. Staged disclosure of information and documents We agree with the approach outlined in the consultation paper. We endorse the suggestion, and model developed by Residents of Retirement Villages Victoria (RRVV) for a simplified checklist to be utilised to make this disclosure of information of documents easier and clearer. Qn 9 - COTA believes that copies of documents be provided as per option a) (As a matter of course), as it may be difficult for many people to be aware of, or negotiate, for disclosure of information and provision of documents. Qn 10 COTA argues that no charges should be made by managers for the provision of documents to prospective residents. Any cost should be borne by the proprietor as a business overhead, particularly as setting up a scale of costs per item could discourage requests for copies or disclosure, thereby putting residents in a unwitting position of disadvantage. In addition we also suggest that information be included on RRVV to enable residents to seek assistance and more information. 3
5 2. Retirement Village contracts Qn 15 We believe that the regulations proposed in this section would assist with comparison of village contracts. While complexity may seem to be increased with the provision of more information, COTA believes that the alternative approach set out in this section, ie prescribing matters to be excluded and addressed, and a standardised layout can minimise difficulties and assist in the comparison of village contracts. Qn 17 COTA believes that terms detailing how Residents Groups should operate or made up, should also be excluded from contracts. Qn 18 COTA suggests that a full list of residents rights in addition to those listed, should be included in the contract. Any reiteration and formalisation of the rights of residents is a welcome development. Qn 22 COTA endorses a standardised contract layout, and that standardisation should be introduced to the fullest extent possible. We look forward to the outcomes of this initiative, and the opportunities to work with the Government and Consumer Affairs Victoria in the future, on these matters. If you have any queries please contact Debra Parnell, Manager, Policy Unit, on , or by at policy@cotavic.org.au 4
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