Salford council has failed to find temporary accommodation for homeless people in the parts of the city where it was hoping to expand its services.
The local authority has not been able to secure statutory homeless supported temporary accommodation scheme in Little Hulton, Walkden, Swinton, Eccles, Barton or Winton as part of its procurement process which started in March.
This type of accommodation, which is offered to individuals who are identified as vulnerable and are likely to have very high levels of complex needs, will continue to be based in Broughton and Pendleton with 35 places available.
But no acceptable offers were made for a scheme in the west of the city.
It comes after a 'significant increase' in single homeless people requiring statutory accommodation, rising from 56 to 123 within two and a half years.
Labour councillor Bill Hinds, who is the lead member for finance and support services, said the outcome of the procurement process was 'disappointing'.
He said: "People have been working very hard to make sure this materialises.
"We need to look carefully at how we move on with this because it's important."
The Riverside Group has been awarded the contract for the scheme at The Sash Project at Old Library House in Leicester Road for five years.
Salvation Army Housing Association has been awarded the contract for the scheme at Abbott Lodge in Brindle Heath Road for the same period of time.
There is an option for Salford council to extended both of these contracts by up to two years - should it wish to continue - to a maximum of seven years.
However, of the two tenders received for a scheme with 10 units in the west of the city, neither of these bids were deemed complaint with council standards.
This comes after the council said there was a 'strategic need' to commission statutory homeless supported temporary accommodation in these areas.
But council manager Jane Barlow told councillors on the procurement board on Wednesday (July 7) that there is a lack of accommodation available.
A 'rapid review' will now be undertaken by the local authority to identify the implications of not increasing this type of temporary accommodation and the council will continue to 'explore possibilities' in the west of the city.
As it stands, the council will be saving £53,000 a year with the new contracts.
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