Some residents say the sale of a Windang motel site has blindsided them, and left them at risk of homelessness.
Oasis Motor Inn was sold last week to international investors.
The motel has often been used for emergency accommodation by several agencies.
The sale includes a 30-room motel and 10 waterfront cabins, a 53-site residential land lease village and a service station on a long lease.
The motel is currently used for long stay guests on weekly rates.
Single mother of two Katie Cochran, 25, has been living in a motel room for nearly two years. After leaving a domestic violence situation, St Vincent de Paul helped secure the accommodation.
“I’ve been looking for rental properties, but because I don’t have rental history no one’s given me a chance,” she said.
If she can’t pay her arrears, she must vacate by Friday.
“I’ve got nowhere to go with two kids, because this is our last resort here,” she said.
“It would have been nice if they could have given us like a month’s notice. My option from here is literally across the road on the beach, and pitching a tent for me and my two kids.”
A Department of Family and Community Services (FACS) spokesperson said the department had engaged Oasis three times since June to provide temporary accommodation for its clients.
FACS say they will work with Vinnies, and will seek local alternative accommodation that is suitable for any eligible client currently staying at the property.
Among the cabin residents at Oasis are Jessica Hoarey, 26, partner Bassam Hauzaifi, 40, and their two children.
They have been there since February, paying $300 weekly rent.
Housing NSW initially put them into temporary accommodation nearby, before relocating them to a room at the Windang motel, and later a cabin.
If they don’t pay their outstanding amount they have been asked to leave by Friday. Ms Hoarey said they hoped to temporarily stay with family.
Australian Relief Management have been contracted to manage the site during the transition for the new owners.
This management say only two tenants – who they claim are both thousands of dollars in rent arrears – will be asked to vacate this week due to funds owed.
An employee said the site would eventually “go back to full motel operations”, including the re-opening of the restaurant on-site.
The employee said since they started at the site, residents had been notified of what, if any, total they owed.
“We want to turn this place back into its glory days, and I’ve got to start from somewhere. If people aren’t paying rent, we’re not a shelter.”
The employee said they’d work with Vinnies to assist those leaving this week.
The St Vincent de Paul Society told the Mercury they have sent local case workers to the Oasis motel in order to assist residents to either find alternative housing, or ensure any arrears are handled to help with staying on at the accommodation.