The NSW Government has made an application to the NSW Supreme Court to protect the well-being and financial security of the residents oat Windang's Oasis Village Holiday Park.
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Minister for Fair Trading Eleni Petinos said the state wants an administrator to act as the park's operator, after the operator let the park fall to a dilapidated state.
"The NSW Government is taking action to protect the Oasis Village community," Ms Petinos said.
"An administrator would undertake the essential work of carrying out repairs, securing the financial well-being of the community, and considering the processes required to obtain council authority to operate the park."
Back in February, a residents' group advocate said one incident at Windang was "one of the most concerning things I've seen in my 18 years representing residents across the state".
Gary Martin, the CEO of the Affiliated Residential Park Residents Association said many of the elderly and frail people living in the park had reached a point of "absolute despair".
"We got calls to say that in six or seven of the properties, sewage was coming back up the toilet and we contacted the operator and there was no response," Mr Martin said at the time.
"Elderly residents had to go and buy porta-potties from the Kathmandu store because their sewerage system failed and the operator wouldn't open the spare toilets in the motel so they could have basic sanitation."
The lakeside residential village has been under a cloud for the past few years, after it was sold to international investors in 2018.
In the years since, residents have repeatedly been served eviction notices by the park operator, S&Q Assets Pty Ltd, however these have been ruled as invalid by the NSW Civil and Administrative Tribunal (NCAT).
Ms Petinos wants an administrator to not just improve conditions at the park, but provide residents with a sense of financial security.
"It is unacceptable that our seniors who are living at Oasis and have poured their life-savings into their homes for decades are being subjected to these conditions, and their well-being and financial security has been seriously affected.
"We are seeking the appointment of an administrator so residents can sleep easier knowing their biggest asset, their homes, are once again secure."
A NSW Fair Trading-appointed inquirer recommended the appointment of an administrator to oversee the 57 privately-owned homes at Oasis Village Holiday Park.
NSW Fair Trading will continue to monitor the situation closely.
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