Housing

Homeless hotel residents to get back ‘their’ $3,300 security deposit

Pine Tree Hotel, Rutland, 2019, from deadmotelsusa.com

by Guy Page

The Vermont Attorney General announced a $300,000 settlement Wednesday after an investigation into security deposit withholdings at five motels housing Vermonters through the state’s motel program.

The five motels that are subjects of the settlement are all owned by Anil Sachdev or by companies he controls. These include: The Comfort Inn (Rutland), EconoLodge (Montpelier), Hilltop Inn (Berlin), Pine Tree Lodge (Rutland), and Quality Inn (Brattleboro).

Attorney General Charity Clark said that 429 deposits were originally made by the Agency of Human Services to motels owned by Anil Sachdev on behalf of occupants or former occupants participating in the Transitional Housing Program. 

The State of Vermont decided that, to help their transition, the ‘homeless hotel’ recipients would receive the full security deposit paid by the State to the hotel owners on their behalf when they moved in. 

However, some program participants did not receive the security deposits paid on their behalf due to damage claims or poor recordkeeping. As a result of the settlement, former occupants who received deficient notice are entitled to receive up to the full $3,300 security deposit.

At the time of move out, some occupants received notices stating that they “may have” caused damage and requiring a waiver to contest any disputed amount, Clark said. These notices were deemed unfair or deceptive by the Attorney General.

Other former occupants had deposits withheld in full or in part based on records deemed problematic. For example, records that could not expressly verify whether a particular occupant caused the alleged damages, or that were submitted without adequate supporting photographic evidence, or showed inconsistencies or appeared duplicative of other similar damages forms.

The original Covid-era ‘homeless hotel’ program was funded largely by federal Covid-relief funds. The State has continued a less costly program on its own dime when the federal funds ran out. 

A third-party administrator paid for by the motel owners will establish a website: http://www.vtmoteldeposit.com. The administrator will send out claims forms to qualified former occupants within a couple of weeks.

A report by the Journal-Opinion contributed several paragraphs of this news story.


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Categories: Housing

26 replies »

  1. So what’s worse, a snake of a property owner, bilking the system for unwarranted claims? , or someone living on your taxpayer dollars, who now is receiving a refund of your tax dollars…………………………..Gee, I could use $3K

    Wake up people, they’ll hand out or spend your tax dollars like it’s falling off the money tree, keep working they’re depending on you !!!

    • the state of Vermont, likely paid off his entire mortgage in ONE year, so likely they did that 3x over since it’s been going on for 3+ years?

      $60k per year rent on one room….that could put you in a luxury home for less money.

      Vermont is trying and likely succeeding in out grifting washingon d.c. (small letters used on purpose)

      Just think, in that three year term, they could have bought a home free and clear, for every person, that’s how much money, free money, YOUR MONEY they are blowing through.

      Don’t expect the homeless situation to get better, people around the nation know about Vermonts free gravy train and easy on drugs policy.

  2. In all other places if I damage the property then I have to pay for it. There should not be any exceptions. If you didn’t get a receipt than that’s your problem.

    Neither of these are taxpayer problems and we nor the hotel should be on the hook for any of them. Just because you’re homeless doesn’t mean the rules should change for you.

    Sickening what they will waste our money on.

    • I wouldn’t trust the motel owner either though. Probably also grifting off the dole.

  3. The premise is that the state had to bribe people not to trash a free hotel room paid for by others because they knew this generous gift would be treated with little respect. Ungrateful is an understatement. I realize there are some good people on hard times who genuinely need help getting back on their feet. Those people should get our compassion and help if their intentions are to become more self sufficient.

    However, for the rest that will trash a free room, stop wasting tax payer money on them.

  4. I would think any hotel/motel owner whose property was trashed by these people would voluntarily leave the program in a heartbeat…

    • This seems like a great money maker for these hotels. The state took tax payer money to 1) provide them occupancy, 2) paid more than the rooms were typically charged and 3) guaranteed payment for damages.

      Those are the winners. The losers are the tax payers and the unfortunate neighbors, as it is not just good honest people down on their luck staying in these places.

    • Sachdev is a bit of a grifter, and is playing the state of Vermont for all he can get.
      I can think of better ways to spend $300,000 that should not have been spent in the first place…

  5. This expanded motel program, with it’s benefits awarded based on the honor system has been a disaster for tourism, for the motels’ neighbors, for overburdened public safety officials and most notably for Vermont taxpayers. And with the limited number of motels available for paying guests visiting to and around Vermont, the legislature and some towns are still looking to restrict and regulate the short-term rental industry. It should be no surprise that Vermont is #2 per-capita in “homelessness”, since the word got out nationwide that we are providing free motel rooms based simply on a person’s claim that they have nowhere else to go. Putting a roof over one’s head is typically a big expense, and when that need is met by the welfare cornucopia, it frees up financial resources for things not so beneficial to one’s existence or to society in general. The insult to injury to Vermont taxpayers is the motel slumlords abusing that already ridiculous policy of the state putting up a security deposit and then handing it over to the beneficiary at the end of the stay. You have to now wonder if there is any mechanism in place to prevent beneficiaries of the program from moving out, grabbing the deposit money/golden parachute and then making a subsequent claim of need for another motel room to start the process all over.

  6. You mean they got back the security deposits paid for courtesy of tax payers. The money was never theirs in the first place.

    • More thought on this travesty.
      As per the article:

      “The State of Vermont decided that, to help their transition, the ‘homeless hotel’ recipients would receive the full security deposit paid by the State to the hotel owners on their behalf when they moved in. ”

      WHICH state agency decided? More Specifically WHO in that agency made the decision? And to help their transition to WHAT?

      I’m a taxpaying citizen in the State of Vermont, on a fixed income, and I sure as hell didn’t authorize any any agency, or person, or representative to pay the “homeless hotel recipients,” most of whom are not Vermonters, any money! Why would I? These people have trashed and stolen from my neighborhood. Pan handling has become a gang regulated activity, with vehicles dropping pan handlers off at the entrances to shopping plazas or other locations, and picking them up hours later. I’m sure you’ve seen their neatly lettered signs: “Anything helps. Bless you.” Right… And contrary to what Bernie Sanders puts out, these people are not “…my friends and neighbors…”
      My sympathy was sorely tested the first time they came on my property and robbed me. That sympathy disappeared the second time they tried. And now someone in some agency wants to give them more of my tax money for not even trying to help themselves.
      So again, WHICH agency and WHO in that agency, and transitioning to WHAT? He, she or they need to be fired.

  7. Math time:
    $300,000.00 settlement
    $100,000.00 to investigate?
    $ xxx,xxx.00 for a website?
    All to give a tax-free $3300 “refund” to people whom did not pay to begin with?
    How about the “hotel” owner refund the money to the Vermont General Fund, where it came from. This landlord certainly factored in damage to the unit cost when making the agreement with the state.
    This is a fine example of prudent fiscal management by the elitist crowd embedded in state government.

  8. The State of Vermont not only cooks their books, but set them ablaze and burn through cash with precision and purpose – none of which benefit the average taxpayer. Taxpayers are the money tree they shake violently and relentlessly for every nickel to drop into their hands to spend frivilously. illegally, and with impunity. For all who pay taxes and labor to feed this beast, the Master appreciates the faithful obedience and compliance.

    • …and when the democrats in the legislature run out of productive peoples’ hard-earned tax money, then they sue (shake down) large corporations for more…

  9. Just curious as to why the residents should get the damage deposit back when the State paid for it? Why doesn’t it return to the State coffers?

  10. Isaiah 58:7

    Is it not to share your food with the hungry
    and to provide the poor wanderer with shelter —
    when you see the naked, to clothe them,
    and not to turn away from your own flesh and blood?

  11. Only to an extent, as with rights comes great responsibility. Yes, people have the right to seek housing but also have the responsibility to secure their own housing, to improve their situation over time and not to be a lifelong burden on society. With this being said, there are exceptions such as disabled people, mentally ill and seniors when they are too old to work. Able bodied people have the responsibility to work. We can’t discuss rights without addressing responsibility, as God helps those who help themselves.