Rental company fined $1.5 million for ‘systematic’ law breaches affecting elderly tenants
Authorities have taken action against a company that failed to install stoves in some of its rental homes in Victoria, banning elderly residents from cooking at home.
Ingenia Gardens will pay $1.5 million, which will be split between Consumer Affairs Victoria, affected tenants and the advocacy agency that raised the alarm, and install two-burner stoves in units that do not have them.
Fiona York, executive officer of the Older People’s Housing Action Group, said the group became aware of problems at Ingenia’s rental facilities following reports that food parcels on offer to residents were inadequate.
“Citizens first came to us about the quality of the food. [but] “When we realized they didn’t even have the option of cooking for themselves because they didn’t actually have a kitchen, it was time to file a complaint.”
Consumer Affairs Victoria said it inspected six properties operated by Ingenia last year and found 35 of the units did not have a two-burner cooktop.
The agency said this amounted to a violation of the state’s minimum rent standards and was concerned that the practices were “systematic, large-scale, and impacting those who are vulnerable and financially disadvantaged.”
“As part of this [an enforceable undertaking]A Consumer Affairs spokesman said the company was required to report to CAV every six months to show it was improving its properties to meet minimum standards.
“It should also eliminate unfair contract terms that prevent people from cooking in their own homes. The company can also be audited for compliance at any time.”
Tenants Minister Paul Edbrooke said the penalty took into account all rental providers and that the case was a “clear and unconscionable breach of our minimum standards”.
A spokesman for the minister said the breaches were detected at Ingenia’s sites in Carrum Downs, Geelong, Grovedale, Melton and Ballarat.
York said the $1.5 million fine sends a strong message to operators like Ingenia to comply with the law.
“As older tenants have very few affordable options, this means they are afraid to complain because they have no other options, so hopefully this will help residents feel more empowered to speak up when they feel the rules are being broken,” she said.
Ingenia Gardens will pay $1 million to the Consumer Law Fund of Victoria, $400,000 to affected tenants and $100,000 to the Seniors Housing Action Group.
In a statement to the ASX on Monday, Ingenia said: “Residents living in units without stoves will be paid $15.89. [for each week] They had no cooking facilities and were paid a lump sum of $50 out of frustration and denial of their rights.”
As well as aged care facilities, Ingenia offers rental units to people aged over 55 at nine sites in Victoria.
Ingenia did not respond to a request for comment on any messages to affected residents or claims that some York residents were spending 80 per cent of their pensions on rent and food packages.
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