LONG-TERM residents of Traralgon's Village Caravan Park face eviction if they do not improve their dwellings to meet an upgrade at the site.
Occupants have been warned they have two years to spruce up their homes as part of an effort to ``lift the standard of the park''.
Up to 30 permanent residents, including retirees, could be affected.
In a letter to residents last week, the caravan park's management, Ponderosa Investments, advised that within two years ``all dwellings must meet the required minimum standards to be eligible to remain in the park''.
A list of seven standards relating to the site size and type of dwellings and how they are presented and maintained are set out in the letter.
One of the standards states ``caravans will not be an acceptable form of dwelling for long term residents''.
But Village Caravan Park resident Craig Lawrence said he and many others could not afford to relocate, alter their dwellings or purchase a new home to meet the standards.
``For me it means losing my home and everything I have worked for,'' he said.
``A lot of people don't have the money to relocate.
``What would happen if pensioners had spent their life saving to set up here?''
Mr Lawrence has been living at the park for about two years in a caravan which has three aluminium annexes.
Last year Mr Lawrence spent thousands of dollars to have a bathroom installed in one of the annexes, which he says cannot be relocated.
He said the resale value of his caravan would be affected because it would have to be removed from the site.
Mr Lawrence said he had looked for a house but none were in his price range and he had ``no idea'' where he would go when he could no longer live at the caravan park.
``The local gutter, a bus shelter, I don't know where I'd go,'' he said.
``We'll probably be able to find somewhere to stay short term.
``I'll survive, I just don't think they should be able to do this to us without compensation.''
Although the letter advises the process is part of ``ongoing improvements'' to the park, Mr Lawrence said the letter was the first he had heard of the changes.
``They kept everything top secret, nothing had been mentioned,'' he said.
Ponderosa Investments took over the park in August this year.
Its director, Peter Connolly, said the improvements were designed to tidy up the park and improve facilities for permanent residents and tourists, not to force residents to move.
``We're developing the park to give them more facilities... we're going to be putting in a community centre and indoor pool,'' he said.
``We're going to give them plenty of good quality facilities and in return to that we're looking at better standard accommodation there.''
Mr Connolly said some of the caravans were ``run down and dilapidated'' and he had safety concerns about some of the dwellings with extensions.
``We're a bit concerned about fire access, safety and the quality of the properties,'' he said.
``It is not the intention of the directors of the company to throw people off onto the street.
``We could have given them notice under the legal requirements to move sooner than two years but we thought `let's be fair to the people' and see if they can upgrade their site or give them plenty of time to find alternate site for their accommodation.''
He said the company had not touched nor altered the value of the piece of property belonging to any of the tenants.
Mr Connolly said the company would build ``unregistered, moveable dwellings'' in the park, which would look similar to cottages and could be purchased by residents.
Prices for those dwellings could range between $80,000-$120,000, according to Mr Connolly, but prices have not yet been set.