The first year’s achievements - 2023

The Centre concentrated on the Residents Committee in both the first and second year. Our research had demonstrated that a well-run, effective Residents Committee contributes to a smoothly functioning and harmonious retirement community.

Highlights for the year included –

• the production of 4 information videos and accompanying Resource Sheets which have been extensively used in villages, particularly those where the residents are appointing a new Residents Committee.
• the production of a one-hour Webinar – “Residents Committees – Best Practice” which addressed some of the common issues that arise in Retirement villages between the Residents Committee, Management and residents.
• the establishment of the Retirement Village Education Centre webpages where you will find these and other resources.
• and a continuation of the RVRA Board Village Visits Program where, over the course of the 1st year of the grant, Board members visited 35 villages – 13 in Greater Sydney and 22 in Regional NSW, meeting with over 1,100 residents.

These are resources available on the Education Centre web pages for all retirement village residents.

This year’s achievements - 2024

Earlier in 2024 our project manager Kate Shane, retired. We thank her for her guidance during that crucial first year where we establish the foundations of the Education Centre. We were fortunate in being able to continue this year with funding from the NSW Government, but realised we would need to make the Education Centre at least partially self-funded if we wanted to continue providing these services to NSW Retirement Village residents in future years.

The program for 2024 has continued to provide resources aimed at the Residents Committee. Workshops for Residents Committees have been our major project.

There has been interest in the workshops from both residents and operators; however, they require a large commitment from our volunteer Board, which, in addition to the actual presentations of the half and one day workshops, often requires extensive travel and sometimes accommodation. We do offer on-line workshops and try to accommodate the individual requirements of the various Residents Committees who approach us. There is a great need for this information as many Residents Committees struggle with their role and understanding the limitations of their functions.

Other resources so far this year include:

• The Budgetary Process Guide, which is a major resource for Residents Committees and residents to use in the lead up to an Annual Budget. It outlines the general timeline and highlights and separates the legislative requirements and what the RVRA considers Best Practice. This will aid in ensuring that all the necessary work entailed in the analysis of the village budget and the presentation to the residents for their approval or rejection, goes as smoothly as possible.
• The Village Outreach Program introduced zoom meetings and established a Visits Slide Library for the use by Board members during their visits.
• The Website Development Project, which is an extensive revision of the RVRA website including the Education Centre pages and is being undertaken with the aim of improving the flow of information for the user.
• The RVRA Bulletin, now in its third year, aims for high quality articles giving information to readers. To achieve a better coverage of those Retirement Village residents who are not computer literate, the Village Ambassador program offers support to Ambassadors to provide some hardcopy either for the village notice board, reprint in village newsletters, or distribution. A mini survey in the June Bulletin on readership revealed 40% of the respondents share the Bulletin with family, friends or neighbours.
• Our Information Sheets are in the process of being checked with the help of a RVRA volunteer. This resource, along with our Enquiries Service, is only available to RVRA members.

A video series entitled “Living in a retirement village” is at present under production and we hope to have 2-3 short videos on the website by the end of the year. This is an exciting project, which will produce several videos on different topics, and be added to over the next years.

And in the Future?

Since 2022 we have conducted an Annual Budget and AMP Survey which gives us insight into the problems surrounding financial matters in Retirement Villages. The Centre is planning for the next stage of educational resources aimed at providing residents committees, finance subcommittees, residents, and managers in retirement villages with resources enabling a better understanding of this crucial area.

In the first two years (2023-24) the Education Centre has established a strong foundation upon which to provide much needed resources to the Retirement Village community. As a volunteer organisation we face many challenges, but dedication and enthusiasm make up for most of these. We hope for continued support from the NSW Government but most importantly we value the continued support from you, the RVRA members.

Diane Hart

RVRA Board Member & Chair Education Centre

General Information

The general information results have not changed much in 3 years. This year respondents reported they have lived in their village for an average of 9 years, the majority of respondents (78.5%) are on leasehold contracts and 92.7% of villages have a Residents Committee.

Budgets

Most budgets have been passed with 64.9% approved and 13.6% requiring no vote due to being under or at CPI increases. However, nearly 11.8% had not been finalised at the time the survey was closed.

The vast majority of residents pay recurrent charges monthly (84.6%) and a high number reported a recurrent charges increase in line with CPI. The lowest recurrent charge rise reported was 0% and the highest was 25%.

Only 30.8% reported that a 3-year report for capital maintenance was attached to the proposed annual budget, whereas 36.8% said it was not and 32.3% said they did not know.

Asset Management Plans

• 57.8% reported the Asset Management Plan (AMP) was available for residents to review and discuss with management but 16.1% stated it was not available. A further 26.5% were not sure if the AMP was available.
• 21.1% of respondents reported the AMP included an Independent Assessment by a professional, whereas 20.6% stated it did not. 58.3% were not sure if there was one included.
• In answer to the question “for your most recent budget was there a line item for the Asset Management Plan (AMP)” 19.5% reported there was a line item for AMP maintenance and 5.2% for AMP preparation. 60.8% of people were unsure.
• 53.7% were paying between $31,000 and $40,000 for AMP maintenance and 10% were paying over $50,000.

Comments

Despite the lower CPI rises in the past year there has been a significant increase in the strain the cost of living is placing on people living in retirement villages. A similar number of budgets to last year were rejected (2023: 9%; 2024: 8.8%), and a few have been referred to NCAT.

Once again over 50% of the comments in each section were negative. And, similar to the last surveys, many respondents were “not sure” indicating a lack of communication on Finances within villages.

What next?

The responses will be analysed over the next few weeks and a full report developed and made available through the RVRA’s website and Bulletin. A comparison with the last two year’s result will be conducted to see if there are emerging trends or action to be taken by the RVRA with key stakeholders.

Roger Pallant - RVRA Vice President
Diane Hart - RVRA Chair Education Centre

The formal meetings required under the Retirement Villages legislation of all residents in retirement villages are:

Annual Management Meeting (AMM) – this is held within 4 months of the end of the Financial year and is mainly an information session called by management in which management provides finance reports and future plans and answers questions from residents (Reg 31). The AMM is Chaired by management or their representative ((s 72A (3)), except that, if a vote is taken (not usually the case at an AMM), they must leave during the casting of the vote (s 75(2B)). This is an ideal opportunity for residents to make comments on the running of the village and to raise any queries they may have about the budget process, maintenance, capital works, future plans, etc.

Residents’ Meetings (including Annual General Meeting (AGM) and Annual Budget Meeting). Residents’ meetings can be called by management (s 72A(8), 51(5), 60(4), 73) or by the Residents Committee (RC) (s 70(5c)). Although the legislation specifies that residents “have the right to meet for the purpose of considering and voting” (s 74 (1)), it does not specify that residents can call such a meeting.

In villages without a RC, such as yours, management can call a meeting but must call a meeting if requested by the prescribed number of residents (s 73). In villages without a RC, the chair of each meeting needs to be selected by the residents at the meeting by a show of hands. Attendance by management is allowed (e.g., to answer questions on a village matter) if the residents give consent (s 75(2)) but they must leave during the casting of any vote (s 75(8)).

New Operator Meeting (s 41) This is an information meeting that will seldom be required.

Non-Voting meetings

A Forum may be called by anyone. Although there is no voting at this meeting, you will still need to elect a chair and minutes secretary. It is also up to the meeting to decide who can attend.

Running a meeting

For any meeting, the agenda is issued by whoever calls it, but the notice of meeting may ask for any agenda items, and these can be added by anyone who is attending. There will often be opportunities during the meeting to bring up further topics for discussion.

Part of a Residents Committee’s role is to convene and conduct meetings of residents and manage the voting. Now might be an ideal time for your village to reconsider the need for a RC. The RVRA can help you with a village visit to educate residents on the role and function of a RC and can provide workshops for a new RC to provide them with the knowledge and skills necessary to fill the role effectively.

Q2. We are going to elect a new residents committee at the AGM. We want to give the residents the option of submitting proxies or having absentee voting. The returning officer does not want to accept absentee voting as an option.

A2: By absentee voting I take it your Returning officer is referring to Postal Votes? The voting methods are a show of hands, written ballot, proxy votes and postal votes (Sch 1 cl 3); sch 6 cl 6). Absentee voting is by proxy votes or, in some circumstances, postal votes.

Votes in respect of a special resolution must be in writing (Reg Sch 6) in person, in person, by proxy, or as a postal vote.

The election of your new Residents Committee (RC) is by general resolution. Residents can vote regarding a general resolution by a show of hands or a written ballot (in person or by proxy). A show of hands vote is commonly used for noncontroversial voting, but residents have the option to decide (by a show of hands) to vote by written ballot (Reg Sch 6 cl 5).

Postal voting, while it may be used for a special resolution, is not mentioned for general resolutions under the Retirement Village (RV) Legislation. The AI Act allows that postal voting for both special resolutions and general resolutions so if your village is incorporated, it is available for use.

Proxy voting is generally an easier option for absentee voting, and in this case would be the most straightforward method.  A resident can appoint a proxy to vote on their behalf for both general and special resolutions (s 77) (IS20 Proxy Voting). The appointment form set out in Part 4 Sch 1 of the RV Regulations must be used.

Q3: I am a pensioner and money is tight. Our Residents Committee (RC) arranged with the Manager to charge us a fee to use the village bus to go shopping. I don’t know who gets this money or what they do with it. How do I appeal this unfair bus fee?

A3: Ask the RC for details on the bus fee - why they set it up and how the money is spent. Maybe they want a “user pays” system for use of village facilities. If you still believe the fee is unfair, put a request to the next residents’ meeting that the fee is reviewed with the possibility of repealing it. You could also move a motion that full minutes be provided to residents of all meetings (including RC and sub-committee meetings) so that residents are informed of the background to decisions such as this. 

To put a motion, write your proposal, get it seconded by another resident, and send it to the RC for inclusion on the agenda. Attach all relevant information, so you won’t need to speak to it at the residents’ meeting (see the RVRA Information Sheet IS16 Motions). If this is too much to take on, ask around for others concerned about the same issues and request them to put one or both motions.

Diane Hart
RVRA Board Member & Chair Education Centre