RETIREMENT VILLAGES ACT 1999 - SECT 234 Apportionment of balance where single fund maintained for capital replacement and maintenance and repairs

RETIREMENT VILLAGES ACT 1999 - SECT 234

234 Apportionment of balance where single fund maintained for capital replacement and maintenance and repairs

(1) This section applies if immediately before the commencement of this section a scheme operator of an existing retirement village maintains a single fund for capital replacement and maintenance and repairs for the retirement village.

(2) The scheme operator must, within 90 days after the commencement of this section, transfer the balance in the fund to the capital replacement fund and the maintenance reserve fund in the proportion that the amount decided by the quantity surveyor under section 92 as expected capital replacement costs is to the amount decided by the quantity surveyor under section 98 as expected maintenance costs.

Example—

If there is $600,000 in an existing fund for capital replacement and maintenance and repairs for the retirement village and the quantity surveyor has decided the amounts required under sections 92 and 98 as $500,000 and $250,000 respectively, out of the $600,000 available, $400,000 is to be transferred to the capital replacement fund and $200,000 is to be transferred to the maintenance reserve fund.

Penalty—

Maximum penalty for subsection (2)—200 penalty units.