The ACT government has spent more than $9 million on vital repairs at the Narrabundah Longstay Park after securing the contentious site for a fraction of that cost in 2006.
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The government acquired the low-cost housing site off Narrabundah Lane through a land swap deal to save the hundreds of residents from eviction by owner Joseph Zivco, who had bought the park for $2 million that year.
The government also paid the developer $1.5 million in compensation for the lack of services on the new parcel of land.
Thirty-one homes have since been demolished and a further 68 repaired as part of government moves to bring homes up to health and safety standards.
A total of $2.7 million of government funding was allocated for repairs, in addition to $5 million for capital works. A further $1.02 million was agreed on in 2012 for infrastructure upgrades, as well as $600,000 in the 2007-08 budget.
While the majority of residents who spoke to Fairfax Media were happy with the government's involvement, several said they were unhappy with the process.
One tenant, who did not wish to be named, said he had been treated like a "peasant" by government staff.
"They've tried to do the right thing but it's the bureaucratic mentality," he said.
"Some of the things they've done, the regulations, have been ridiculous."
He said he did not want to be identified as he was afraid of being evicted.
"I've got nowhere else to go," he said. "I've lived in caravans all my life and can't afford rents in Canberra."
Comment was sought from the government about the process but none was provided by the print deadline.
Sixty-eight of the remaining homes required repairs, with 58 receiving financial assistance from the ACT government.
A total of 88 homes will remain once the process is complete, down from the initial count of 102.
A spokesman for the Community Services Directorate said residents were given the option of rectifying, replacing or leaving their homes.
"Some of those who chose to relocate moved interstate, some applied for and were accepted into public housing," he said.
"Some made their own arrangements for alternative accommodation and one intends to move into a new mobile dwelling."
No plans have been made regarding the vacant sites.
No residents were made homeless through the process, according to ACT Shelter executive officer Leigh Watson, who said the new homes led the way for further development of similar housing for people on low to moderate incomes.
"We urge caution in this regard and would not want to see such a model become the default option for people on low to moderate incomes," she said.
"However, as an option adding an extra element of choice, it would be welcome."
Ms Watson said it was essential that the government draft legislation to govern caravan and long-stay mobile home parks.
"As a first step, the current Residential Tenancies Act should be revised to cover residents of the Narrabundah Longstay Park and other similar parks in the ACT," she said.
