Introduction

For the past three years Housing for the Aged Action Group has been campaigning for improvements to the housing conditions of older people who live in Caravan and Residential Parks in Victoria. As in other states, there have been significant changes to this type of housing with caravan parks closures being a dominant trend. We have also seen the expansion of a new form of Residential Park, sometimes called Lifestyle Villages, that are purpose built and are more akin to a retirement village in appearance and management.

It has been estimated that there are more than 10,000 permanent residents living in caravan and residential parks in Victoria. While there has been a decline in the numbers of caravan parks, with many being sold off over the past ten years, there is a rapid expansion occurring in the Retirement Village style Residential Parks. Based on current developments alone, it is expected that this will boost the number of permanent residents in this sector by more than 30% over the next few years.

Caravan parks

The decline of traditional caravan parks has been most evident in the beachside areas around Melbourne, on the Mornington Peninsula, and the other coastal areas such as the Gippsland region. In 2004 the Mornington Peninsula Shire Council produced a report called See-Change that described the closure of many parks in that area, caused by the following factors: increases in property values, increases in land tax, gentrification of Park accommodation and legal vulnerability (lack of tenancy rights) of Caravan Park residents.

When Parks have closed they have caused significant hardship to the residents. Residents are forced to move to another location after many years of living in one Park, and leave behind friends and the community they have helped form. Residents who had owned their own dwelling are forced to sell their home at a significant financial loss, or have to pay exorbitant fees, on average $15,000, to have their dwelling transported to another location. Some dwellings, due to their age, are not suitable for sale or relocation and so an evicted resident is forced to walk out of their home with nothing. In Victoria residents are not eligible for any compensation if a Park closes and many elderly pensioners have had to borrow funds to be able to relocate. In some cases the forced relocation has happened to the same residents more than once.

Caravan parks in idyllic coastal locations are still regarded as an attractive low cost housing option for many retirees, but as the suburban fringes encroach on areas like the Mornington Peninsula and the price of land continues to escalate, this trend of park closures is expected to continue.

Lifestyle parks

Residential or lifestyle parks are a hybrid of the traditional caravan park model.

They suit individuals or couples looking for a retirement village lifestyle, but at a more affordable cost. A number of property developers have entered this market and are setting up new villages with dwellings numbering between 150 to 300 dwellings.
There are similarities with caravan parks, mainly due to the dwellings being technically movable, as they are constructed on a metal chassis rather than having solid foundations. However, in most other respects they have much more in common with retirement villages.
For example, residents' contracts contain costs such as deferred management fees and the weekly charges pay for a range of services as well as site fees. These villages usually incorporate a large community centre where a range of activities may be organised. They may also have bar facilities, a mini-cinema complex, library, gymnasium, bowling-green and a spa/swimming pool. One company, Lifestyle Communities (www.lifestylecommunities.com.au) have built a 275 site village in Melton in the outer western suburbs of Melbourne. They have current plans for another three or four villages in country Victoria.

There has been some criticism from local government about these new Lifestyle Parks.
Like most caravan parks, the sites are not zoned for residential developments and are on land that has not been subdivided. Therefore the Council rates that are paid are significantly less than would be the case in a standard housing development. Some Councils have rejected applications for development of Parks due to the cost to government of providing the services required to service a significant increase in the local population, particularly in country Victoria. There are other critics who have expressed concern that the building regulations for such dwellings are less stringent than for a typical housing estate. The developers of these villages counter that argument by stating that the savings achieved by building relocatable-style housing enables older people with lower levels of assets to enter the retirement village sector as they are paying $100,000 to $200,000 for their home, compared to at least $400,000 to $500,000 to buy into a retirement village.

Action so far by Housing for the Aged Action Group (HAAG)

Housing for the Aged Action Group has formed a working group of 45 caravan and residential park residents who believe that there is an urgent requirement for law reform to improve residents' rights in light of the current changing landscape. The working group was formed from a statewide forum held on the 29th June 2005, where 100 residents attended and discussed their problems and proposed solutions. The issues were listed in a subsequent report, called Living In Limbo, in March 2006. The report was launched with the assistance of the Minister for Consumer Affairs, Marsha Thomson, MP.

Since that time the working group has met monthly and has developed a log of claims.
The State Government gave a commitment at the recent election held in November 2006 to reform the sector and the department that has responsibility, Consumer Affairs Victoria, has just released an Issues Paper as part of its Residential Accommodation Strategy.
The Issues Paper has a chapter dedicated to Caravan and Residential Parks.
The Issues Paper can be found on the Consumer Affairs website at www.consumer.vic.gov.au under 'What's new - public consultations and reviews'.

Major issues for residents

Law reform in Victoria has not kept pace with the decline and changing form of caravan and residential parks, leaving people living in this type of accommodation vulnerable in a number of ways.

Some of the main issues raised by residents are:

Security of tenure - Older permanent residents want the security to know that they can live long term in their chosen accommodation. Some of the new lifestyle parks provide long term leases but there is confusion as to whether they are legally binding.

Fee control is required to ensure Park fees remain affordable for aged pensioners. Currently rents can rise according to property market fluctuations. Residents are seeking rent control as exists under the Retirement Villages Act (RVA) where increases are linked to the Consumer Price Index (CPI).

Resident participation - Currently managers of parks have complete authority to decide on matters regarding rules and decisions about the park and its residents. Residents want the right to participate in decisions about common facilities and services in their Park. Park rules should be negotiated with residents via residents committees with legal recourse at VCAT if reasonable proposals are rejected by management.

Planning and building laws need to provide better protection for residents by improving building regulations for their type of housing and the Park infrastructure.

Residents' right to sell their home. Many contracts currently specify that park owners have exclusive right to sell their home. This puts undue power in the hands of park owners who have, in some cases, delayed sales.

Remove ongoing rental charges after vacating premises. Where properties have been vacated when residents have moved, or have even moved into supported accommodation, residents continue to be charged rental fees for services they are no longer receiving.

Standardised contracts and leases to avoid loaded expenses such as additional lump sum maintenance fees, administration fees, visitor charges, parking charges, gas bottle hire.

Better regulation of utility infrastructure There are many and varied contractual arrangements requested of residents by park owners for the supply of water, gas and electricity services.

Mandatory emergency procedures Parks do not necessarily have emergency evacuation procedures or disaster plans in place.

Park registration and accreditation. Parks should be required to register their business with a central government authority such as Consumer Affairs Victoria, and should be required to comply with a benchmark of management standards.

Park Owner provision of an Annual Meeting with requirement to declare the financial management of a Park or village to demonstrate their prudent financial operation that protects the tenure investment of the residents.

Large Lifestyle Parks should have mandatory sinking funds for future park infrastructure to ensure that businesses remain viable into the future and therefore give confidence to residents about their own investment in a park.

Improved residents' awareness of rights and willingness to take action Residents rights are only effective if residents have the freedom to exercise such rights. Increased emphasis by government on community education and a strategy that normalises complaints procedures is required.

Conclusion

Victoria is far behind other areas in Australia regarding reform of Caravan and Residential Parks as most other states have had significant and detailed reviews of their legislation in recent years. This is the first time since the inception of the Caravan Parks and Movable Dwellings Act in 1988 and its incorporation into the Residential Tenancies Act in 1997 that this issue is about to be dealt with in detail by the Victorian Government. While the Residential Accommodation Strategy is not a review of the legislation as such, we are hopeful that it is the forerunner of real reform in the near future.

We would welcome any advice or information from our interstate colleagues that may help us with our campaign. We can be contacted on (03)96547389 or email haag@oldertenants.org.au .