Retirement villages in New Zealand

Like most of the developed world, New Zealand has an ageing population. There are many different forms of accommodation available, and while some people chose to remain in their family homes as they get older or go into a rest home or a care facility, retirement villages are becoming an increasingly popular choice. Retirement villages generally offer a range of housing; from independent living units to facilities offering increasing levels of care as people's health requirements change. From a planning perspective, this means that many retirement villages will offer a range of facilities; from villas, apartments and town houses to accommodation with hospital-level care. There are also likely to be shared facilities for recreation and leisure activities, including swimming pools, bowling greens, libraries and gymnasiums. Even though the retirement village buildings may be multi-story and higher density than traditional housing, the activity is fundamentally a residential use.

Legislative framework

Retirement Villages Act 2003

The obligations of retirement village operators and the rights of residents are primarily governed by the Retirement Villages Act 2003 and associated regulations. The Retirement Villages Code of Practice 2008 sets out the minimum requirements that operators must meet, or ensure are met, to fulfil their legal obligations under the Retirement Villages Act. The Retirement Villages Act also includes a comprehensive disclosure regime so residents can make an informed decision to move into a village.

This is important, as in a retirement village a resident will generally not own the unit they reside in but will have a right to occupy it under an occupation right agreement.

Resource Management Act 1991

Retirement villages must also be established and operated in accordance with New Zealand's primary environmental and planning legislation, the Resource Management Act 1991 (RMA).

Territorial authorities (City and District Councils) have responsibility under the RMA for land use and subdivision within their districts. District plans usually set out the rules that apply within areas (commonly referred to as zones) within a district.

Regional councils have responsibility under the RMA for discharges to land, air and water, the taking of water and activities which take place in the coastal marine area with relevant rules set out in regional plans.

District and regional plan rules may require resource consents to be obtained to undertake activities in particular locations and applications for such consents can be publicly notified or notified to a limited group of people.

District and regional plans are prepared through a process specified in the RMA, which generally anticipates that there will be public submissions and hearings on plan provisions.

Resource management issues

Resource consent for retirement villages

When people retire they often wish to stay in the community they currently live in, and as a result there is demand for new retirement villages in existing residential neighbourhoods with a good level of existing residential amenities. Often there is a predominance of traditional single one or two-storey houses with gardens on existing sites in these neighbourhoods.

Retirement villages are usually medium to high density. Large sites that can accommodate them within existing residential neighbourhoods can be difficult to obtain.

Land use resource consent is often required under a district plan to establish and operate a new retirement village.

It is common for local residents to object to resource consent applications for redevelopment of existing sites as retirement villages.

Common complaints relate to the environmental effects of large-scale retirement villages on neighbourhood character, construction effects, residential amenities, and safety arising from matters such as:

• building intensity, scale, location, form and appearance;
• traffic;
• design of parking and access; and
• noise, lighting and hours of operation.

Opposition from local residents also often arises because they consider that retirement villages are commercial or hospital activities and are not appropriate in a residential zone – as opposed to a commercial zone.

However, national planning standards recently released by central government will, in the future, require district plans to include a standard definition of retirement village. This states that retirement villages are residential activities.

Another trend has been for developers to build retirement villages and other care facilities in rural zoned areas on the edge of existing urban areas, where large sites may be easier to acquire and land is less expensive.

This has led to concerns about the environmental effects of retirement villages on rural character and rural amenities and the appropriateness of this type of accommodation in a rural environment. This is against a background that a number of cities are pursing planning policies aimed at containing urban development in a defined urban area.

District plan provisions

The degree to which retirement villages are provided for in district plans varies across the country. In some areas, retirement villages are not specifically provided for in district plans. As a result, the retirement village industry actively participates in district plan-making processes by making submissions and by filing appeals on plan provisions.

A common theme in submissions on plan provisions from the industry is that there should be bespoke planning provisions for retirement villages, including density, bulk, location and design controls which are tailored to the needs of retirement villages. The industry seeks that plan provisions focus on environmental effects external to the retirement villages such as shading and privacy for neighbouring properties, rather than effects within the retirement village itself.

A number of these disputes are ultimately resolved in New Zealand's specialist Environment Court, which hears appeals about resource consent applications and district plan provisions.

Summary

As more people expect to be living independently in low-maintenance properties, enjoying an active retirement, the demand for new retirement villages in New Zealand is likely to grow.

Retirement villages can fill a niche in the market by providing a particular form of housing. They can also enable efficient use of land and infrastructure and can contribute to a compact, built urban form. The current challenges being faced by councils and communities are to ensure that retirement villages are appropriately located and that there are sufficient planning controls to address their effects on the environment, especially on existing residential amenities.