Snowy Monaro Regional Councillors have voted to transfer the closed Snowy River Hostel in Berridale to registered charity Currawarna Assisted Living Ltd (CAL), subject to strict financial safeguards and a future council decision.

The 14-bed facility, owned by council, has remained dormant since its closure in 2023, leaving Berridale without local aged-care options amid a growing regional shortage.

Before the August meeting, Councillor Reuben Rose presented a community proposal document for councillors to review before voting on the motion, to help them gain a better understanding of what the transfer would mean for council.

Included in the document were important statistics from the Australian Institute of Health and Welfare (AIHW) and Australian Bureau of Statistics (ABS). The NSW average is one aged-care facility bed per 20 residents over 65 years. The Snowy Monaro region has one per 34 residents. Approximately 20 per cent of the Snowy Monaro population is aged 65 or older, well above the state average of 15 per cent. These figures were also cited in CAL’s 2023 business plan.

Addressing the status of the hostel, Cr Rose said that since its closure, ‘council has carried the facility as a non-performing asset: incurring maintenance, insurance and holding costs while generating no community benefit.’

“No alternative operator has come forward and the proposal from Cooma Challenge was not supported by council,” Cr Rose said.

“The idea of having CAL operate the hostel was the result of an assessment of competing proposals at a community meeting and a large majority vote (82 per cent) by more than 400 local residents was for the proposal put forward by CAL.”

Cr Rose emphasises no property has been transferred.

“The current resolution establishes conditions CAL must satisfy before any transition can proceed, including a requirement that CAL raise and secure at least $2 million in capital, verified by council’s chief executive officer. Then a second, separate council vote will be required to give final authorisation,” Cr Rose said.

To protect the community asset, CAL’s constitution mandates that its operations remain restricted to the Snowy Monaro region and requires any surplus assets - including the hostel - to be transferred to an equivalent aged-care charity should the organisation wind up.

The proposed transfer agreement is also expected to include clawback provisions returning the property to council if it ceases to be used for aged care.

Cr Rose’s document also lays out the process for navigating local government procurement regulations.

Cr Rose said it has been brought up by council staff advising that Section 55(1)(g) of the Local Government Act (LGA) generally requires councils to invite public tenders prior to disposing of property.

However, Cr Rose stated that this concern “overstates the legal position,” pointing out that Section 55 allows for exemptions where a previous expression of interest (EOI) process failed to yield a viable operator.

“The proposed transfer is legally permissible,” Cr Rose said.

“Sections 55 and 356 present procedural requirements that can be satisfied - they are not absolute prohibitions. The extenuating circumstances exemption under s55(3)(i) is directly applicable given the failed EOI process and absence of any competing viable operator.

“Supporters of the pathway note a recent precedent: the 2024 transfer of Yallambee Lodge to Respect Aged Care, which proceeded through direct negotiation under similar circumstances.”

Addressing CAL’s operational capacity, Cr Rose described the provider as “not a start-up or a community group with aspirations,” but rather “a registered charity with a demonstrated operational track record at its Bombala facility.”

According to Cr Rose, CAL’s audited 2025 financial accounts indicate a cash position of $624,955 with no long-term debt.

“Revenue grew more than seven-fold as its Bombala site ramped up to full operation, with initial operating deficits reflecting start-up costs rather than financial distress,” Cr Rose said.

A rescission motion has been lodged against council’s decision, which will be heard at the September meeting.

Should the rescission fail, the decision from the August meeting will start to be enacted. This places the onus on CAL to meet the $2 million capital requirement before council conducts its final vote.

For Berridale residents, the outcome of the process will determine whether the Snowy River Hostel can re-open its doors to meet the region’s growing aged-care needs.