159Proposed annual budget

159 Proposed annual budget (1) The operator of a retirement village must give each resident in the village a copy of the proposed annual budget for each financial year for the village— (a) on a day, at least 30 days before the beginning of the financial year to which the budget relates, agreed to by the operator and the residents; or (b) if no day is agreed—at least 60 days before the beginning of the financial year to which the budget relates; or (c) if a regulation prescribes another time—at the prescribed time.

(3) If the operator operates more than 1 retirement village, the operator— (a) may give a combined proposed annual budget in relation to 2 or more villages; but (b) when giving the budget to each resident and each former occupant of a particular village, must include a separate budget for that village. (4) If the retirement village is subject to a units plan, the operator must ensure that a copy of the general fund budget for a financial year, required for the annual general meeting of the owners corporation under the Unit Titles (Management) Act 2011, section 75, is given to the residents of the village at the same time as the copy of the proposed annual budget for the year. (5) A regulation may make provision in relation to— (a) matters that must be dealt with in a proposed annual budget; and (b) matters that must not be financed by way of using amounts received for recurrent charges. (6) The proposed annual budget must be accompanied by a notice that includes the following: (a) a statement to the effect that the operator of the retirement (i) must seek the residents consent to spend the money in the way set out in the budget; and (ii) if the residents do not give their consent—may spend the money in accordance with an order of the ACAT; (b) a brief statement explaining the reasons for any changes in spending from the previous financial year;

(c) a statement to the effect that if any change in spending results from a change in the services or facilities the operator provides at the village, consent to that change must be by special resolution of the residents; (d) anything else prescribed by regulation. (7) The notice may include a statement to the effect that the notice is the operator’s formal request for the residents’ consent to the spending of the money in the way set out in the budget. (8) Nothing in this section prevents the operator cancelling a proposed annual budget and replacing it with an amended budget at any time. (9) This section is subject to section 160.