The Vermont Attorney General's office announced today that more than 300 former motel residents will get back security deposits that were improperly withheld.
Motel owner Anil Sachdev housed people experiencing homelessness through a state program that was meant to help them transition to permanent housing. The state paid a $3,300 security deposit for each resident, which people could keep if they stayed in the program for at least four months and left their rooms in good condition.
But Attorney General Charity Clark told reporters on Wednesday that Sachdev, who owns five motels, didn't properly document room damages and many residents got improper notices telling them that they 鈥渕ay have鈥� caused damages.
鈥淭he notices require a signature and a waiver of pursuing any remainder of the deposit,鈥� Clark said during Wednesday鈥檚 press conference. 鈥淚n some cases, people felt compelled to take the money in order to have some amount as they left the program. These notices were unfair and deceptive under Vermont law.鈥�
Sachdev is required to pay back $310,000 in improperly withheld security deposits, . A third-party administrator, paid for by Sachdev, is expected to send out claim forms to former motel residents in a few weeks and set-up a , according to the AG鈥檚 office.
Sachdev, in a brief phone call, referred all questions about the settlement to his attorney who didn鈥檛 immediately respond to a request for comment.
The Attorney General鈥檚 investigation found similar practices to ones first reported on last year by and .
Clark said the AG鈥檚 office started investigating Sachdev after the received more than a dozen complaints from motel residents who said their security deposits had been improperly withheld.
The also requires Sachdev to use $523,600 to make repairs and improve conditions at his motels and provide the state with documentation of that work.
The motels covered by the settlement are the Cortina Inn in Rutland, EconoLodge in Montpelier, Hilltop Inn in Berlin, Pine Tree Lodge in Rutland, and Quality Inn in Brattleboro.
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