Closing a retirement village
When a retirement village operator proposes the temporary or permanent closure of a retirement village, they must provide all existing residents with a closure plan. The plan must provide a clear, orderly and fair process for the wind down period and closure. Residents must be given an opportunity to ask questions, make submissions and vote on the plan.
The requirement for closure plans came into effect from 11 November 2019, when changes to the Retirement Villages Act 1999 (the Act) came into effect.
Content of a closure plan
A closure plan must include details of:
- timeframes for the proposed wind down period and closure
- reasons for the closure
- how residents will be notified about the wind down and closure
- consultation with residents in preparing and revising the plan
- communication and consultation with other people who may be impacted by the closure e.g. other services and businesses operating in the village
- how the closure will impact the amenity of the village, general services, maintenance and personal services during the wind down period
- options available to residents on closure and help provided by the village operator e.g. relocation, financial, legal etc.
- the source of funds or operator’s financial obligations, including the payment of exit entitlements or freehold buybacks
- how reinstatement, exit fees and exit entitlements will be dealt with
- how budgets and funds for the village (capital replacement fund, maintenance reserve fund and general services charge fund) will be dealt with, including final reports and disbursements
- how any existing or proposed body corporate arrangements will be dealt with.
Approval process for closure plans
If a village operator wants to close a retirement village they must:
- notify the chief executive (Department of Housing ) of a proposal to close the village
- give all residents a copy of the proposed closure plan within 28 days of giving notice (or longer if the operator is given an extension)
- propose a date and time for a residents’ meeting where they can vote to approve or reject the proposed closure plan. The meeting must be at least 21 days from the date residents received the closure plan.
If residents don’t vote to approve the plan by the specified date, the village operator may apply to the chief executive to approve the plan.
Before making a decision, the chief executive will write to all residents to explain how submissions can be made about the proposed closure plan. By making a submission, residents can tell the chief executive about their needs and how the proposed plan would impact them.
The chief executive may also request additional information from the operator or direct the operator to revise the proposed closure plan.
If a village operator wants to revise an approved plan, they must make an application to the chief executive. Revisions to the plan will only be approved if the chief executive is satisfied that the revised closure plan provides a clear, orderly and fair process for closure of the retirement village.
If the chief executive approves the proposed closure plan, or a revision to an approved closure plan, you will receive a ‘QCAT information notice’. This notice will outline your rights to review the decision through the Queensland Civil and Administrative Tribunal.
A village operator may also discontinue a closure plan by providing a notice to the chief executive and each resident in the retirement village.
Steps for residents
- Read the proposed closure plan and consider whether the proposed process is clear, orderly and fair to you.
- Vote on the closure plan by the date specified in the residents' meeting notice. This may be done in person, by proxy, or by postal vote. More information on this may be found in the residents’ meeting notice.
- Ask the village operator to clarify any aspects of the closure plan which are unclear. The plan may specify a time for a ‘question and answer’ session.
- Consider seeking independent legal advice about your rights and obligations under the Act and how the proposed closure may affect you.
- Make submissions to the chief executive about the proposed closure plan if you receive an invitation to do so.
- Consider your rights to apply to the Queensland Civil and Administrative Tribunal to appeal the chief executive’s decision to approve a closure plan, if you receive a QCAT information notice.