Authorities have taken action against a company that failed to install cooktops at some of its Victorian rentals and prohibited elderly residents from cooking at home.
Ingenia Gardens will pay $1.5 million – split between Consumer Affairs Victoria, affected renters and the advocacy body that raised the alarm – and install two-burner cooktops in units that didn’t have them.
Housing for the Aged Action Group executive officer Fiona York said the group became aware of issues at Ingenia’s rental facilities after reports food packages being offered to residents were inadequate.
“Residents were firstly coming to us about the quality of the food, [but] once we realised that they actually didn’t have an option to even cook a meal for themselves because they didn’t have any kitchens, it was time to make a complaint.”
Consumer Affairs Victoria said it inspected six sites operated by Ingenia last year and found 35 of the units did not have two-burner stove tops.
The agency said this constituted a breach of the state’s minimum rental standards and that it was concerned the practices were “systematic, large-scale and affected those who were vulnerable and financially disadvantaged”.
“As part of [an enforceable undertaking], the company must report to CAV every six months to demonstrate it’s improving its properties to meet minimum standards,” a Consumer Affairs spokesperson said.
“It must also remove unfair contract terms stopping people cooking in their own home. The company may also be audited for compliance at any time.”
Minister for Renters Paul Edbrooke said the fine put every rental provider on notice and that the case was “a clear and unconscionable breach of our minimum standards”.
A spokesperson for the minister said the breaches were detected at Ingenia’s facilities in Carrum Downs, Geelong, Grovedale, Melton and Ballarat.
York said the $1.5 million fine sent a strong message to operators like Ingenia to abide by the law.
“Because older renters have such few choices that are affordable, it means they’re scared to make a complaint because there are no other options, so I hope it helps residents feel empowered to speak up when they think the rules have been broken,” she said.
Ingenia Gardens is to pay $1 million to the Victorian Consumer Law Fund, $400,000 to the affected renters and $100,000 to the Housing for the Aged Action Group.
In a statement to the ASX on Monday, Ingenia said, “residents who resided in units without cooktops will be paid $15.89 [for each week] they were without cooking facilities, as well as a lump sum of $50 in recognition of the frustration and denial of their right”.
As well as aged care facilities, Ingenia offers rental units to people over 55 at nine sites in Victoria.
Ingenia did not respond to a request for comment about any messages it had for affected residents, or to further allegations from York that some residents were spending 80 per cent of their pensions on the cost of rent and their meal packs.
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