RETIREMENT VILLAGES ACT 1999 - SECT 92
Amount of capital replacement fund
RETIREMENT VILLAGES ACT 1999 - SECT 92
Amount of capital replacement fund
92 Amount of capital replacement fund
(1) Before a scheme operator decides a budget under section 93, the operator
must obtain an independent quantity surveyor’s written report, that complies
with section 113AA , about the expected capital replacement costs for the
village for the next 10 years.
Penalty—
Maximum penalty—540 penalty
units.
(2) For subsection (1) , the report must be—
(a) a full report—
(i) in the 2009 financial year and in every third financial year after that;
and
(ii) in any other financial year in which substantial changes have been
made to the retirement village; and
(b) an updated report in every financial
year in which a full report need not be obtained.
(3) The scheme operator
must decide the amount to be held in the capital replacement fund for the
village (the
"capital replacement reserve" ) having regard to the fund’s purpose, the
quantity surveyor’s report and any amounts transferred to the fund under
section 232 or 234 .
(4) In having regard to the quantity surveyor’s
report, the scheme operator must use the scheme operator’s best endeavours
to implement the surveyor’s recommendations in the context of—
(a) the
objects of this Act; and
(b) any circumstances relevant to the
retirement village that apparently were not considered by the quantity
surveyor.
(5) If the amount a scheme operator must spend on capital
replacement at any time is more than the amount held in the capital
replacement fund, the operator must pay the difference between the actual
amount to be spent and the amount held in the capital replacement fund.
(6)
Within 5 months after the end of each financial year, the scheme operator must
give to the chief executive a copy of the full or updated report obtained,
under subsections (1) and (2) , during the financial year.
Penalty—
Maximum penalty for subsection (6) —200 penalty units.
