Capital improvements
Generally, operators pay for capital improvements and capital replacement, and you pay for the maintenance of the village’s capital items.
Capital improvement means the first-time provision of a capital item. The village operator is responsible for the cost of capital improvement in the village.
However, if by special resolution vote, the residents agree to give the operator a written request for a capital improvement to the village and the operator agrees to the request, the residents are jointly responsible for the cost of the capital improvement.
Capital improvements to your unit
You can request a capital improvement to your unit. You must pay for the improvement.
Quotes for capital improvements
If you or the residents committee request a capital improvement, the operator must get at least 2 quotes for requested capital improvement work. They then give copies of the quotes to whomever is requesting the work.
If you request a quote for an improvement to your unit, you must pay any reasonable costs of getting the quotes. Where the request is from residents for a capital improvement to the village, the costs of getting the quote are met by all residents jointly.
Money received for capital improvement
The village operator must:
- keep capital improvement money received from residents in a trust account
- refund to residents all capital improvement money that exceeds the cost of the capital improvement
- not use capital improvement money for any other purpose.
Capital replacement fund
This fund is used to replace capital items such as communal facilities, roadways and drainage. It also pays for quantity surveyor fees (used to help determine the cost for capital replacement needs) and taxes on fund interest.
The operator is responsible for the cost of replacing village capital items owned by the operator other than those the residents have agreed to be responsible for.
The fund is not used to maintain the village. It is protected by the Retirement Villages Act 1999 to ensure that the capital facilities in a village are replaced at the end of their life span.
You must pay for capital replacement if you deliberately damage a capital item or cause accelerated wear.
Capital items within a resident’s unit
Responsibility for maintenance, repair or replacement of items in your unit will usually be set out in the residence contract. Generally, contracts provide that maintenance, repair and replacement of things within your unit are your responsibility.