Melbourne, July 15: Land lease communities need better regulation to protect older people from mistreatment, according to Housing for the Aged Action Group.

Today a story published by the ABC highlighted problematic deferred management fees charged by some land lease communities or residential parks. These often-exorbitant fees make it extremely difficult for older people who have purchased properties in these communities to leave.

Housing for the Aged Action Group Executive Officer Fiona York says these fees are just one example of many problems caused by a lack of regulation.

“This shocking story is unfortunately not a surprise to us,” she says.

“Gaps in Victoria’s consumer protection laws and access to justice frameworks are destroying some older people’s ability to enjoy a happy retirement.

“The government is aware of the issues in land lease communities, and have made it a regulatory priority. We look forward to working with them to fix this for residents. But these issues have persisted for far too long.”

Older people need access to housing beyond just private rental and home ownership and with the right regulations land lease communities could offer a critical and viable housing alternative.

“Land lease communities should be part of the solution to the housing crisis. It’s a form of housing many older people enjoy. Many people want to live in these communities,” York says.

“But currently we’re seeing unscrupulous operators in an underregulated space trapping older people in bad situations. We speak with lots of older Victorians and their families who are concerned, being abused or harassed by park operators and managers.

“It’s a rapidly growing and changing industry and legislation just hasn’t kept pace.”

Housing for the Aged Action Group is calling on the Victorian Government to introduce six measures to protect older people in retirement housing from exploitation and abuse:

1. Establish a retirement housing ombudsman that would provide free, fair and binding dispute resolution.
2. Put a stop to excessive fees that are frequently opaque and have no relationship to the value of the services being provided.
3. Address complex and ambiguous contracts: by making them standardized like rental agreements.
4. Introduce training and accreditation standards for managers of land lease communities, bringing them in line with what is expected of residential real estate property managers.
5. Protect residents’ right to sell.
6. Involve residents in any reform process.

About Housing for the Aged Action Group (HAAG):

Housing for the Aged Action Group is one of the only Australian organisations specialised in the housing needs of older people. Coming from grass-roots beginnings over 40 years ago, HAAG today is over 800 members strong. It is committed to finding long term solutions to the housing crisis facing older people in Australia.

Media Contact: Kye White - 0419 11 62 69 or media@oldertenants.org.au