Victorian Consolidated Legislation

Retirement Villages Act 1986 - SECT 38

Increases in maintenance charges

38. Increases in maintenance charges



(1) In this section-

adjusted maintenance charge means the adjusted maintenance charge determined
and indexed in accordance with the regulations;

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special levy means a payment which is made by a resident to the owner or
manager and which is not-

   (a)  a maintenance charge; or

   (b)  a payment made in consideration of residence in the village.

(2) Despite anything to the contrary in a residence contract, a management
contract or the by-laws a resident is not required to pay a maintenance charge
to the extent to which it is greater than the adjusted maintenance charge.





(3) A manager is not liable in any civil action for breach of contract in
respect of the manager's failure to provide goods and services to residents
if-

   (a)  to cover the cost of the provision of the goods and services it would
        be necessary to levy a maintenance charge greater than the adjusted
        maintenance charge; and

   (b)  in all the circumstances the manager acted reasonably; and

   (c)  the residents have not approved the payment of a maintenance charge
        greater than the adjusted maintenance charge.

(4) Subsection (2) does not apply if the payment of a maintenance charge that
is greater than the adjusted maintenance charge has been approved by
resolution of a majority of the residents at a meeting of the residents or is
approved by resolution of the residents committee.

(5) Subsection (2) does not apply to the payment of a maintenance charge which
is greater than the adjusted maintenance charge to the extent to which the
greater amount represents-

   (a)  rates, taxes or charges in respect of retirement village land or the
        use of a retirement village land levied under an Act or subordinate
        instrument; or

   (b)  salaries or wages paid in accordance with an award made by a
        Commission, Tribunal, Board or other body under-

   (i)  an Act other than this Act; or

   (ii) a Commonwealth Act- if the salaries or wages are paid to a manager or
        a person employed in connexion with the retirement village.

(6) Despite anything to the contrary in a residence contract, a management
contract or the by-laws, a resident is not required to pay a special levy
unless-

   (a)  the residents have not been required to pay a special levy for the
        past 12 months; and

   (b)  the special levy has become payable in one of the following ways-

   (i)  the owner or residents must make the expenditure which the levy is
        intended to cover because of the requirements of an Act, a subordinate
        instrument or the order of a court;

   (ii) the residents have authorized the making of the special levy by
        special resolution passed at a residents meeting;

   (iii) the residence contract, the management contract or the by-laws
        provided that the residents are responsible for the expenditure or the
        class of expenditure which the special levy is intended to cover.