If the operator appoints the residents association as the manager of the village (in the service agreement or other residence document), and the residents are all members of the residents association, then a number of issues arise including legal capacity, multiple and conflicting obligations and questions as to the relevance of the Retirement Villages Act 1986. Some of the issues arising, relating to powers of the residents to act collectively to manage a village, are set out in the table below. Table 2: Summary of enabling powers for residents to act collectively under relevant legislation General provisions relating to Associations committees a Retirement Villages Owners Corporations Incorporation Act Residents Act 1986 Act 2006 1981 Association is required in the residence documents Capacity to No Yes Yes No operate a bank account Capacity to Yes Yes Yes Yes provide management & maintenance services Capacity to No Yes Yes Yes employ staff Capacity to No No (operations are No (operations are Yes provide sales required to be not for required to be not for & marketing profit) profit) services Capacity to Residents capacity is Yes Yes Yes in part because make limited to special control is retained by decision on levies and outings the operator behalf of the residents Requirement Yes. Although no Yes Clear process set Yes Clear process set No. Agreements may to have a clear process set out out to take disputes to out to take disputes to require the residents complaint to take disputes to VCAT Magistrates Court association committee process VCAT to have a complaints process or act as the manager for the village. In addition to issues relating to who is the there are also issues as to the multiple ‘manager’ committees that may be required to be established by legislation as set out below: Residents committee (Retirement Village Act 1986) Residents Association committee (Association Incorporation Act 1981) Owners Corporation committee (Owners Corporations Act 2006)
If the operator appoints the residents association as the manager of the village (in the service agreement or other residence document), and the residents are all members of the residents association, then a number of issues arise including legal capacity, multiple and conflicting obligations and questions as to the relevance of the Retirement Villages Act 1986. Some of the issues arising, relating to powers of the residents to act collectively to manage a village, are set out in the table below. Table 2: Summary of enabling powers for residents to act collectively under relevant legislation Retirement Villages Act 1986 Owners Corporations Act 2006 Associations Incorporation Act 1981 General provisions relating to committees a Residents Association is required in the residence documents Capacity to operate a bank account No Yes Yes No Capacity to provide management & maintenance services Yes Yes Yes Yes Capacity to employ staff No Yes Yes Yes Capacity to provide sales & marketing services No No (operations are required to be not for profit) No (operations are required to be not for profit) Yes Capacity to make decision on behalf of the residents Residents capacity is limited to special levies and outings Yes Yes Yes in part because control is retained by the operator Requirement to have a complaint process Yes. Although no clear process set out to take disputes to VCAT Yes Clear process set out to take disputes to VCAT Yes Clear process set out to take disputes to Magistrates Court No. Agreements may require the residents association committee to have a complaints process or act as the manager for the village. In addition to issues relating to who is the ‘manager’ there are also issues as to the multiple committees that may be required to be established by legislation as set out below: Residents committee (Retirement Village Act 1986) Residents Association committee (Association Incorporation Act 1981) Owners Corporation committee (Owners Corporations Act 2006)