Dozens of Aboriginal communities could sue the Northern Territory government for millions of dollars after the awarding of compensation to residents from remote Santa Teresa over the neglect of their homes.

The Eastern Arrernte people of Santa Teresa, near Alice Springs, sued and won in the Northern Territory civil and administrative tribunal on the basis that their homes were uninhabitable owing to neglect.

The government countersued for unpaid rent and was at one stage claiming nearly $2m, or an average $21,000, from Santa Teresa’s households.

But the tribunal dismissed that claim and ruled that the housing department had breached its tenancy agreement and obligations as a landlord.

One of the worst proven cases involved Jasmine Cavanagh, who had a blocked toilet and leaking shower for 269 days, during which time sewage water leaked through her family’s home.

“I used to have to go and have a shower at my mum’s house,” she said. “We would also wash the kids there.”

One household did not have an air conditioner for at least 540 days, in a region where heat is extreme, while others were left without front or back doors, handles and locks, and stoves not working for long periods.

“This is a landmark case cementing that governments cannot enforce dodgy rental debts against remote Indigenous communities for uninhabitable housing,” said Lou Dargan from Grata Fund, which funded the litigation.

“Grata Fund and Australian Lawyers for Remote Aboriginal Rights are exploring the potential for similar litigation in other remote communities.”

The residents’ lawyer, Dan Kelly, said he had already been approached by other communities.

Four households were examined but the compensation will apply to all 70 Santa Teresa households that were part of the class action, with rough estimates that about $350,000 in taxpayer funds will be paid.

The housing minister, Gerry McCarthy, blamed the previous Country Liberal government, which was in power when the class action started in 2016.

The Labor government had committed $1.1bn over a decade to housing in remote communities but the commonwealth was yet to honour its outstanding $550m commitment “which has been held up for eight months”, McCarthy said.

The department declined to comment.