RESIDENTS of Bendigo supported residential facility Bignold Park have been given notice to vacate within 31 days.
Family members say the short notice is heartbreaking for vulnerable residents.
But the facility's owner said she was given two choices by the government - either close voluntarily within six weeks, or involuntarily in two - because her finances were not viable.
A Department of Families, Fairness and Housing spokesperson said it would support residents and staff to make the transition to alternative services as smooth as possible.
Eleven people currently live permanently at the home, with a further seven on a short term basis, and two people in respite care.
Residents have a mix of disability, mental health and aged care-related needs.
Family member Bev Carrison said residents were heartbroken by the decision, after they were told at a meeting at the home.
Her brother-in-law has been a resident of the home, while recovering from a car accident.
Mrs Carrison said the decision to close had put residents and their families in a difficult position.
She said even straight-forward rental accommodation in Bendigo was hard to find, let alone a place for vulnerable residents to live in.
"They could have given them two months or three months or something," she said.
"The residents were crying, they've been here for quite a long time, staff were very upset. There's only about 20 there, and it's like a home for them."
In a notice to vacate seen by the Bendigo Advertiser, residents have been told they must leave the home by June 7.
The home has been owned by Florentino Health Care Services Pty Ltd since early 2018.
The owner - who asked not to be named - said the department went to her on Monday with two options: she close the business voluntarily in six weeks, or involuntarily in two.
She said the business hadn't been making money since she bought it in 2018, because it received no federal funding.
The owner said the majority of residents were on the Australian pension, but the building was old so she couldn't attract people on a higher rate.
She said two pay rises after she bought the business, and rising overheads, meant it was not viable financially.
She said the COVID-19 shutdown exacerbated the issue, because there was no intake.
"I'm just angry, we all think the system has failed us," she said.
The DFFH Human Services Regulator regulates supported residential services across Victoria.
The Bendigo Advertiser understands residents will be supported by DFFH, the Office of the Public Advocate, NDIS providers, general practitioners, State Trustees and the Bignold Park care team to transfer to appropriate facilities.
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