Why retirement village residents seek an industry Ombudsman. The VCAT system is failing them.
This is the detail of a real situation over 4 years of village operation. The resident contends that these matters are all contrary to the provisions of Retirement Village, Contract and Consumer Law.
In 2020 the operator declared residents voted for a special increase in fees without counting the votes to substantiate the necessary resident support as required by statute. Total cost to residents in that year some $22,000.00.
Commencing in 2020/21 the operator incorrectly calculated resident fees. Cost to residents some $80,000.00 to date then compounding by cpi for every year into the future.
From 2019/20 the operator charged for ‘services’ claimed to have been provided but stating only the total amount. No details, no itemisation. Residents denied statutory right to examine validity of charges. In the order of $200,00.00 per annum.
In 2021/22 residents were charged for the cost of the operator’s own legal expenses. Total cost to residents in that year some $46,000.00.
From 2019/20 the operator failed to verify that the fee levied on residents met their statutory obligations. Total cost to residents accumulated to date, some $236,000,00.
From 2019/20 the operator overdrew the resident’s Major Maintenance Fund to pay costs that were the contractual responsibility of the operator to pay. Overdrawn balance of the fund to date, some $390,000.00.
From 2019/20 the operator included in resident monthly fees the wages cost of village maintenance staff for the refurbishing of village units owned by the operator and being prepared for resale. Most units were the contractual responsibility of the operator to pay those costs. $ uncosted to this time
From 2019/20 the operator included in the monthly fees of those residents without a contractual obligation to pay, staff wages plus the replacement cost of fittings, fixtures and furnishings for the unit maintenance where the occupying resident had a contractual obligation to pay the direct costs incurred. $ uncosted to this time
From 2019/20 new village residents on the operator’s new contracts were charged a monthly ‘maintenance charge’ greater than the statutory allowable maintenance charge. Total cost across all new residents in the order of $153,000.00 to date.
The total amount in dispute over just 4 years of village operation is $1,727,000.00 plus.
