Change of retirement village operator
If there is a proposal to transition control of your retirement village to a new village operator, the existing operator must prepare a transition plan. The plan should provide a clear, orderly and fair process for the transition of control. In some cases, you may be given a copy of the plan and an opportunity to make submissions.
Transition plans are required from 11 November 2019, when changes to the Retirement Villages Act 1999 (the Act) came into effect.
If the contract to transition a village was executed before 11 November 2019, a transition plan is not required.
Content of a transition plan
A transition plan must include details of:
- the existing and new village operators, managers and land owners
- how residents will be consulted and kept informed during the transition process
- when the transfer of control will take place
- timeframes for the handover period
- the schedule for transition of operations, including:
- general services and maintenance
- personal services
- disclosure of mandatory payments due to former residents.
- the transfer of village financial documents and reports to the new operator
- the transfer of control of capital replacement budgets, maintenance reserve and general services funds
- any transfer of leases for other businesses or services operating in the village e.g. hairdresser, cafe
- impacts to the body corporate arrangements in the village
- significant impacts to residents during or as a result of the transition.
Approval process for transition plans
The approval process aims to balance the commercial interests of village operators with residents’ interests and the affects the transition will have on your home and quality of life.
The existing retirement village operator must seek approval from the chief executive (Department of Housing and Public Works), by:
- giving the chief executive notice of a proposal to transfer control of the village
- giving the chief executive the proposed transition plan within 28 days of giving notice. The chief executive can grant an extended notice period.
If the chief executive is satisfied the plan provides a clear, orderly and fair process for transition, they will approve the plan. If not, they can request additional information from the operator or tell the operator to revise the plan.
During the approval process, the chief executive can give the plan to anyone they think has an interest in the transition, and will consider submissions from those people. This may include:
- residents
- former residents with a financial interest in the village
- families of residents
- anyone else who might be significantly affected by the transition.
Once the plan is approved, you will receive a ‘QCAT information notice’. The Act requires that an information notice be issued, however at this time there is no legislative right to review the decision. If the Act is amended to provide a right of review, this will be communicated to residents and village operators.
The existing and new village operator are both responsible for the implementation of the approved transition plan.
Steps for residents
You may receive a copy of the transition plan if the chief executive thinks you have an interest in the transitioning of control of the retirement village scheme. If so, you should:
- read the proposed transition plan and consider whether the proposed process is clear, orderly and fair to you
- make a submission to the chief executive about the proposed transition plan if you receive an invitation to do so.