New South Wales Consolidated Acts

RETIREMENT VILLAGES ACT 1999 - SECT 99

99 Capital works fund

(1) If an approved annual budget provides for the setting aside of any part of the recurrent charges for the purpose of funding capital maintenance in a period that extends beyond the end of the financial year to which the budget relates, the operator of the retirement village must establish and maintain a capital works fund.

(2) However, this section does not require that a separate fund be established in respect of each financial year.

(3) A capital works fund must be held in an account with an authorised deposit-taking institution or as otherwise prescribed by the regulations.

(4) The operator of a retirement village is to pay into the capital works fund--

(a) such portion of the recurrent charges as may be required under an approved annual budget, and

(b) any interest received from the investment of the whole, or any part of, the capital works fund.

(5) The operator of a retirement village must not use money from the capital works fund except--

(a) to meet the cost of capital maintenance, or

(b) if the residents of the village consent to a proposal that the operator of the village distribute the whole, or any part, of the capital works fund that is not required to fund capital maintenance to the residents of the retirement village in equal shares--in accordance with that proposal, or

(c) as prescribed by the regulations.

: Maximum penalty--100 penalty units.

(6) A proposal under subsection (5) (b) may be made by the operator of the retirement village or the Residents Committee (if any).

(7) If the residents consent under subsection (5) (b) to a proposal made by the Residents Committee, the operator may apply to the Tribunal for (and the Tribunal may make) an order that--

(a) the distribution is not to be made, or

(b) approves or varies the proposed distribution.

(8) In making an order under subsection (7) the Tribunal may consider the following--

(a) the proportion of the capital works fund that is proposed to be distributed,

(b) whether the proportion of the capital works fund that is proposed to be distributed is reasonably likely to be required to fund capital maintenance,

(c) any other matter that the Tribunal considers appropriate.