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Changes to retirement village operations
In 2017 the Housing Legislation (Building Better Futures) Amendment Act 2017 (HLA Act) was introduced. The HLA Act amended the Retirement Villages Act 1999 (RV Act).
Changes to the RV Act that came into force on 11 November 2019, include the requirement for scheme operators to prepare plans for changes in village operations. Plans must be in the approved form and include matters prescribed by the Retirement Villages Regulation 2018.
Changes in village operations refers to the closure of a retirement village scheme (including temporarily), transition of control to a new scheme operator, and redevelopment of a retirement village.
These laws will help ensure certainty for the retirement village industry and improved transparency in the relationships between operators and residents.
This guide provides information on closure plans, redevelopment plans and transition plans for retirement villages.
Closing a retirement village
As a retirement village operator, if you're proposing the temporary or permanent closure of a village, you must prepare a closure plan. The plan should provide a clear, orderly and fair process for the wind down period and closure.
The requirement for closure plans came into effect from 11 November 2019, as a result of changes to the Retirement Villages Act 1999 (the Act).
Content of a closure plan
A closure plan (Form 8) (DOC, 386KB) must include details of:
- time frames and schedule of the proposed wind down and closure
- reasons for the closure
- notifications to residents about the wind down and closure
- any consultation with residents in preparing the closure plan, during the closure process and for any proposed revisions to the plan
- communication and consultation with other relevant persons that may be impacted (e.g. other services and businesses operating in the village)
- how the closure will impact the amenity of the village and ongoing provision of general services, maintenance and personal services
- options available to residents on closure and any help you're providing (e.g. relocation, financial, legal)
- the source of funds or operator's financial obligations, including the payment of exit entitlements or freehold buybacks
- how you're dealing with reinstatement, exit fees and exit entitlements
- how you're dealing with budgets and funds for the village (capital replacement fund, maintenance reserve fund and general services charge fund), including final reports and disbursements
- how you're dealing with any existing or proposed body corporate arrangements.
Approval process for closure plans
If you propose to close your retirement village, you must:
- Formally advise the chief executive of Department of Housing by completing a notice of proposal to cancel registration (Form 8A) (PDF, 85KB)
- Within 28 days of advising the chief executive (or longer if you apply for an extension of time), you must give residents
- a copy of the proposed closure plan
- a residents meeting notice (Form 8B) (PDF, 96KB), proposing a date and time for the residents meeting to vote on the proposed closure plan. The date specified in the notice cannot be less than 21 days from when you gave residents the closure plan.
If the closure plan is not approved by the residents' vote at the meeting, you may apply to the chief executive to approve the plan.
Before making a decision, the chief executive will write to each resident to tell them how they can make submissions on the proposed closure plan.
The chief executive may also request additional information from you or direct you to revise the proposed closure plan. Use the chief executive information document (Form 10) (PDF, 89KB) to provide additional information.
If you want to revise an approved plan, you must make an application to the chief executive. Revisions to the plan will only be approved where the chief executive is satisfied that the revised closure plan provides for 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, each resident in the retirement village will receive a Queensland Civil and Administrative Tribunal (QCAT) information notice for the decision.
You may also discontinue a closure plan by providing a notice (Form 8C) (PDF, 85KB) to the chief executive and each resident in the retirement village.
Your responsibilities
As an operator, you should:
- ensure the proposed closure process is clear, orderly and fair
- provide residents with the opportunity to vote on the closure plan. This may be done in person, by proxy, or by postal vote
- allow residents to clarify any matters in the closure plan that they do not understand. You may wish to consider holding a 'question and answer' session
- encourage residents to seek independent legal advice about their rights and obligations under the Act and how the proposed closure may affect them
- note and consider your rights to apply to QCAT to appeal the chief executive's decision to give you a direction to revise the plan.
You are responsible for implementing an approved closure plan. Penalties may apply under the Act.
Redevelopment plans for retirement villages
As a retirement village operator, if you are proposing to redevelop a village while it's operating, you must prepare a redevelopment plan. The plan should provide a clear, orderly and fair process for the redevelopment.
A redevelopment plan must be prepared for redevelopments that include:
- the construction or demolition of an accommodation unit
- the construction, demolition, expansion or reduction of a building or structure in the village
- the expansion or reduction of the retirement village
- the expansion or reduction in retirement village greenspace or parklands
- a change in the use of a building or structure located in the retirement village.
A redevelopment plan is not needed if:
- changes are minor (e.g. construction or demolition of a shed)
- residents were given written notice of the redevelopment before they became a resident in any of the following documents:
- Residence contract
- Village comparison document (VCD)
- Prospective costs document (PCD)
- Village by-laws
- Public information document.
Content of a redevelopment plan
A redevelopment plan (Form 9) (DOCX, 396KB) must include details of:
- time frames of the proposed redevelopment
- the status of any local government approvals
- any prior notifications to residents about the proposed or similar redevelopment
- consultation with residents in preparing the plan, during the redevelopment process and for any proposed revisions to the plan
- how the redevelopment will impact the amenity, value and quiet enjoyment of residents, how their units may be affected, and how these impacts will be managed
- how general services will be impacted
- fees and charges that will be impacted and how these impacts will be managed
- whether residents will be relocated during the redevelopment and the process for doing so
- any compensation residents may receive as a result of the redevelopment.
Approval process for redevelopment plans
If you propose to redevelop a retirement village, you must:
- give each resident in the retirement village a copy of the proposed redevelopment plan
- issue a residents meeting notice (Form 9A) (PDF, 96KB) proposing a date and time for the residents meeting to vote on the proposed redevelopment plan.
If the redevelopment plan is not approved by the residents' vote at the meeting, you may apply to the chief executive to approve the plan.
Before making a decision, the chief executive will write to each resident of the retirement village to tell them how they can make submissions on the proposed redevelopment plan.
The chief executive may also request additional information from the operator or direct the operator to revise the proposed redevelopment plan. Use the chief executive information document (Form 10) (PDF, 89KB) to provide additional information.
If you want to revise an approved plan, you 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 redevelopment plan provides a clear, orderly and fair process for the running redevelopment of a retirement village.
If the chief executive approves the proposed redevelopment plan, or a revision to an approved redevelopment plan, each resident in the retirement village will receive a Queensland Civil and Administrative Tribunal (QCAT) information notice for the decision.
A scheme operator may also discontinue a running redevelopment by providing a notice of discontinuation (Form 9B) (PDF, 81KB) to the chief executive and each resident in the retirement village.
Your responsibilities
As an operator, you should:
- ensure the proposed redevelopment process is clear, orderly and fair
- provide residents with the opportunity to vote on the redevelopment plan—this may be done in person, by proxy, or by postal vote
- allow residents to clarify any matters in the redevelopment plan that they do not understand (you may wish to consider holding a 'question and answer' session)
- encourage residents to seek independent legal advice about their rights and obligations under the Act and how the proposed redevelopment may affect them
- note and consider your rights to apply to QCAT to appeal the chief executive's decision to give you a direction to revise the plan.
You are responsible for implementing an approved redevelopment plan. Penalties may apply under the Act.
Change of retirement village operator
An existing scheme operator must give notice (Form 11A) (PDF, 84KB) to the chief executive about a proposal to transfer control of the retirement village's operations. Within 28 days of giving the chief executive notice of the proposal, the existing scheme operator must give the chief executive a proposed transition plan unless the chief executive grants an extended notice period.
From the date the transfer takes effect, the new scheme operator is the scheme operator for the retirement village and obtains the benefits and is subject to the obligations of the existing scheme operator in relation to a residence contract associated with the retirement village scheme.
A transition plan is not required for a transfer of control of a scheme's operation under a contract that was executed before the commencement of the relevant sections in the Act.
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 (Form 11) (DOCX, 353KB) must include details about:
- the existing and new scheme operators, managers and land owners
- how residents will be consulted and kept informed during the transition process
- when transfer of control is proposed to take place
- time frames for the handover period
- the schedule and details about 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 other reports to the new operator
- the transfer of control for the budgets and funds for the capital replacement, maintenance reserve and general services funds to the new operator
- any transfer of leases for other businesses or services operating in the village (e.g. hairdresser, café)
- impacts for the body corporate arrangements in the village
- significant impacts for 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 effects the transition will have on their home and quality of life.
You must seek approval from the chief executive of the Department of Housing and Public Works, by:
- Giving notice of a proposal to transfer control of the village
- Giving the proposed transition plan to the chief executive 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.
The chief executive may also request additional information from the operator or direct the operator to revise the proposed transition plan.
During the approval process, the chief executive can give a copy of the plan to any person 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 may be significantly affected by the transition.
If you want to revise an approved plan, you 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 transition plan provides for a clear, orderly and fair process for transitioning control of the retirement village.
If the chief executive approves the proposed transition plan, or a revision to an approved transition plan, each resident in the retirement village will receive a Queensland Civil and Administrative Tribunal (QCAT) information notice for the decision.
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, we will notify you.
You may also discontinue to transition control of the retirement village scheme's operation by providing a notice (Form 11B) (PDF, 82KB) to the chief executive.
Your responsibilities
As an operator, you should ensure the proposed process for transitioning control of the retirement village scheme is clear, orderly and fair.
Both you and the new scheme operator are responsible for implementing an approved transition plan. Penalties may apply under the Act.
© The State of Queensland 1995–2024
- Last reviewed: 08 Sep 2021
- Last updated: 08 Sep 2021