The Government has extended its red zone buy-out scheme in Christchurch to include rest homes and retirement villages.
The Retirement Villages Association is applauding the move, saying it has been fighting for inclusion in the scheme for some time.
Earthquake Recovery Minister Gerry Brownlee says extending the scheme was complicated by the fact that rest homes and retirement villages are, strictly speaking, commercial businesses.
However, the Retirement Villages Association's executive director, John Collyns, says the loophole is that many retirees put capital into their units, and therefore they cannot be deemed commercial businesses.
The extension covers four developments - Kate Sheppard Gardens, Kate Sheppard Lifecare, Avonview Retirement Village, and St Ives Rest Home.