The Local Government and Social Care Ombudsman found that the man, who has mental health difficulties, first asked the council for help in July 2023 after becoming homeless.
The council misplaced his records, and in the following months his condition worsened and he lost contact with his family.
He eventually reached out to relatives again, and with help from one of his sisters (Sister A), made a new homelessness application.
In October, another sister (sister B) discovered him sleeping rough outside her home during heavy rain.
She took him in, but her own serious health problems meant this could only be temporary as living with him was also difficult due to his mental health needs.
The council closed his case in November without informing sister B who had been speaking to them on his behalf.
Officials said they had tried to contact the man for an interview, but she told the Ombudsman she had waited by the phone and made three calls to the council that day.
The relationship between the man and Sister B later broke down, meaning that the man had to look elsewhere for somewhere to live.
After sister A asked the council for help again, it eventually placed him in interim accommodation in March 2024.
It accepted a full housing duty six months later.
Later that month, the council issued the man a Personalised Housing Plan that listed actions for him to complete, such as providing his partner’s passport and proof of income.
The plan also stated that the “applicant [was] to view accommodation sent to her” and that he should “inform the council after the child has been born.”
However, the man was the sole applicant, not pregnant, and had already been placed in temporary accommodation at the time.
The Ombudsman said this showed the council had failed to properly understand the case.
The council apologised to the resident, acknowledging delays in handling his case and poor communication during a period of major reorganisation in 2023.
It said the resident is now in accommodation and receiving ongoing support.
A spokesperson added that the housing service had been affected by years of underinvestment and underperformance and is now responding to a 50 per cent rise in homelessness support requests, with over 4,800 applications and more than 3,600 households in temporary accommodation.
The council has since paid the victim £2,000 for the injustice caused.
It will also reimburse £6,400 for bed and breakfast costs he covered between May and October 2023.
His sisters will receive £700 in total for the distress they experienced.
Croydon Council has committed to reviewing the case, reminding staff of their legal duties, and improving how it communicates with homeless residents and their families.
The Ombudsman has upheld nine homelessness complaints against the council in the past two years.
The Ombudsman, Ms Amerdeep Somal, said: “This is a clear case of the dire things that can happen when councils are not on top of their homelessness services and allow vulnerable people to fall through the cracks.
“The siblings have told me this has caused substantial damage to their relationships.
“The man had a mental health crisis during the time he was missing and has since been withdrawn and isolated, and the sisters are still working to rebuild his trust.
“Sadly this is not an isolated case in the borough. In the past two years we have investigated eight other homelessness cases and upheld every one.
“I am pleased the council has accepted our findings and recommendations, I urge the council to take a firm grasp of its homelessness service to ensure other vulnerable residents are not treated in the same way as this man.
“The council has been subject to statutory government intervention since 2023.
“This intervention is currently under review so I will be sharing a copy of this report with the Minister for Local Government and English Devolution.”
A Croydon Council spokesperson said: “We sincerely apologise to our resident and regret that he did not receive the support needed when he approached our service. This happened during a period in 2023 when the organisation was undergoing a major reorganisation.
“We accept that there were delays in handling his case and communications with him and his family should have been better. The resident has since been placed in accommodation and continues to be supported.”
“Croydon is responding to a London-wide increased demand for homelessness support and saw a 50% increase in requests for homelessness support in 2024/5 and dealt with over 4,800 applications. More than 3,600 households are living in temporary accommodation in the borough.
“In 2023, Croydon’s housing service was going through significant reorganisation after years of under investment in training and staff development and under performance of the service – which contributed to delays in case handling.
“These changes were made as part of major transformation of our service, with a renewed focus on prevention of homelessness.
“We introduced a new operating model which delivers both a face-to-face and telephone service to those seeking advice; appointment service to improve assessment outcomes; and placed a greater emphasis on tailoring our support for vulnerable residents with complex needs.
“We have increased staffing to ensure that personalised Housing Plans (PHPs) are issued accurately and on time. Staff have also had training to improve communication with residents, especially when a decision is made or a case is closed.
“There is more work to be done as part of this continued improvement of our housing services, whilst we respond to this London-wide issue.”
