A Devon council's housing service for vulnerable people has been severely criticised by government inspectors.
Despite government funding of more than £6m as part of a national scheme, Torbay Council has been given zero out of a possible three stars.
Inspectors described the council's service as "poor with uncertain prospects of improvement".
Torbay Council has acknowledged the problems and says a £56,000 recovery plan is under way.
The "Supporting People" programme aims to improve vulnerable people's access to housing.
But other problems were also highlighted, including the council's failure to set priorities and drive the programme forward.
Chris Harris, the leader of the council, says it is well-placed to make the necessary improvements and now has a targeted recovery plan.
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